Chargebee Metric
Subscription Billing
Dunning Effectiveness = (Recovered Payments / Total Failed Payments) × 100
Dunning campaign effectiveness measures the percentage of failed payments successfully recovered through automated retry and communication sequences. It quantifies how well your recovery process prevents involuntary churn.
Full guide: definition, formula, and benchmarksDunning Campaign Effectiveness
Dunning campaign effectiveness measures the percentage of failed payments successfully recovered through automated retry and communication sequences. It quantifies how well your recovery process prevents involuntary churn.
How to calculate dunning campaign effectiveness
Why dunning campaign effectiveness matters for Chargebee users
Involuntary churn from failed payments can account for 20-40% of total churn in subscription businesses. Effective dunning directly recovers revenue that would otherwise be lost without any acquisition cost.
Chargebee users can compare recovery rates across dunning configurations, retry schedules, and communication templates to optimise their approach.
Understand and act on dunning campaign effectiveness with KPI Tree
Sync Chargebee payment retry and dunning data into your warehouse and track recovery rates in KPI Tree. Link dunning effectiveness to involuntary churn and MRR impact in a causal metric tree.
Assign operations ownership and set alerts when recovery rates drop, prompting review of retry logic and customer communication.
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Related Chargebee metrics
Failed Payment Rate
Subscription BillingMetric Definition
Failed Payment Rate = (Failed Payments / Total Payment Attempts) × 100
Failed payment rate is the percentage of subscription payment attempts that are declined or fail to process. It encompasses card declines, insufficient funds, expired cards, and gateway errors.
Customer Churn Rate
Subscription BillingMetric Definition
Customer Churn Rate = (Churned Customers / Start-of-Period Customers) × 100
Customer churn rate is the percentage of subscribers who cancel their subscriptions within a given period. It is the inverse of retention and one of the most critical health indicators for any subscription business.
Invoice Collection Rate
Subscription BillingMetric Definition
Invoice Collection Rate = (Paid Invoices / Total Invoices Issued) × 100
Invoice collection rate measures the percentage of issued invoices that are successfully paid within the billing period. It reflects the health of your billing and collections process.
Days Sales Outstanding
Subscription BillingMetric Definition
DSO = (Accounts Receivable / Total Revenue) × Number of Days
Days sales outstanding (DSO) measures the average number of days it takes to collect payment after an invoice is issued. Lower DSO indicates faster cash collection and healthier working capital.
Explore dunning campaign effectiveness across integrations
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