Email, SMS, and In-App Alerts Do Different Jobs. Stop Scoring Them as Rivals.
Dunning channel debates usually start with open rates, which is a little like choosing a vehicle by top speed. The question is never which channel is best in the abstract. It is which job needs doing at this point in a failed-payment sequence — getting attention, explaining a problem, or collecting a new card — because the three channels divide that work almost perfectly, and each is bad at the…
Email, SMS, and in-app alerts each serve distinct purposes in the failed-payment sequence, and it's essential not to pit them against each other as rivals. Each channel excels at a particular task, and together they create a cohesive approach that maximizes effectiveness.
Email is the primary channel for providing explanations and context. It holds the full story, including details on what failed, why it might have happened, what comes next, and what actions are required. Customers can refer back to emails later if they have questions or concerns about the process, which is critical in cases where they may not recall the issue.
SMS serves as the attention-grabbing channel. A text message is almost always seen promptly, which makes it ideal for delivering concise, urgent notifications. However, SMS must be kept brief and focused, as lengthy explanations or payment links can come across as intrusive or suspicious. Using SMS at the right moments ensures it gets the customer's immediate attention without overwhelming them.
In-app alerts act as the context channel, capitalizing on the fact that customers are most engaged and motivated when they are actively using the product. Placing a clear, relevant banner within the app provides a seamless solution that doesn't require the customer to navigate to external channels. This approach is highly effective because it eliminates additional steps and encourages the customer to act immediately.
To ensure these channels work harmoniously, a sequence should be designed with each channel triggering at its most suitable moment. For example, an email can provide a comprehensive explanation and reference an in-app banner, while an SMS serves to quickly alert the customer to the issue. The final notice should return to an email for record-keeping purposes, while the in-app banner remains as a constant reminder within the product.
To evaluate the success of this multi-channel approach, measure the system's performance rather than focusing solely on individual channel metrics. Analyze recovery rates by day of the sequence and by the type of decline. These metrics provide valuable insights into where each channel excels and where improvements might be needed. By treating the sequence as a unified instrument with multiple voices, you can optimize its performance and effectively manage failed payments.
Written by urgent.news from Dev.to's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
