Failed payments happen. How you handle them makes all the difference.
Too many payment recovery systems follow rigid retry schedules and treat all error codes the same. They send messages too soon, which can frustrate subscribers. That creates churn that could be avoided.
Smart Dunning from Stay AI works differently.
It uses error-aware retry logic that adjusts to the reason a payment fails. When paired with Stay AI’s native Klaviyo integration, brands can delay outreach until it’s truly needed. This strategy, recommended by the experts at Stay, helps subscription brands recover more revenue while maintaining customer trust.
How It Works
Smart Dunning, powered by Stay AI, makes faster payment recovery possible in one click.
The system is built with intelligent retry logic. Smart Dunning automatically adjusts retry timing based on the failure reason using data from across the Stay AI platform. Temporary declines are retried quickly. Every attempt is optimized to improve recovery without triggering unnecessary churn.
Paired with Stay AI’s robust Klaviyo integration, brands gain even more control.
Using the Failed Billing metric, you can choose exactly when and how messages are sent. Many brands delay outreach during early retries, creating a “silent retry” strategy. Instead of sending alerts too soon, communication is triggered only when recovery is unlikely without action. This includes situations like several failed attempts or a hard error.
The experts at Stay help configure this setup to align retry logic and communication flows with your retention strategy.
The result is fewer cancellations, less subscriber fatigue, and more recovered revenue.
The Results You Could See
📈 7% average lift in payment recovery
⏱️ 1-day faster median recovery
🔁 More success on second, third, and even seventh attempts
✉️ Fewer unnecessary messages, when paired with Klaviyo
Real Brands. Real Impact.
Rho Nutrition – Faster Payment Recovery Leads to Big Wins
Rho Nutrition knew they could recover more.
Their recovery rates were stuck below 50%. Failed payments were slipping through, and the team lacked the tools to intervene effectively.
With Smart Dunning, everything shifted.
Recovery rates now average around 60% each month. The number of subscriptions recovered has nearly doubled. On top of that, payments are being recovered 1 to 3 days faster than before.
Their approach:
🧠 Tailored retry logic based on error type
⏱️ Dynamic retry cadence that optimized recovery
The impact:
😎 A smoother experience for subscribers and a major lift in recovered revenue.
Beekman 1802 – Higher Recovery, Fewer Cancels
Beekman 1802 was losing too many subscribers to failed payments.
Their old system canceled subscriptions too early. Retry logic stopped after just a few attempts. Subscribers didn’t have time to fix issues. The brand had no way to adjust the cadence.
Smart Dunning changed that.
With a more flexible recovery strategy, Smart Dunning tailored retries to each failure type for Beekman. Subscribers were given more time to resolve payment issues. Messaging and retry cadences became more thoughtful and adaptive.
Their approach:
🔁 Tailored retry logic for different failure types
⏳ Extended recovery window before cancellation
🧠 Adaptive cadence based on real-time signals
The impact:
💪 Nearly 30% lift in recovery rate
📈 Daily recoveries doubled
⏱️ 4-day faster average recovery time
📉 System cancels reduced by over half
🔄 Recoveries began outpacing cancels
🧠 Cancellations occurred later in the billing cycle, giving subscribers more time to resolve issues
First Day – Timing That Works
Before Smart Dunning, First Day’s recovery wasn’t optimized.
They were using a third-party tool that lacked the necessary messaging flexibility and intelligence. This led to frustration, early cancellations, and missed revenue.
Switching to Stay AI changed that.
With help from Stay’s team, First Day activated Smart Dunning and restructured their outreach using the Klaviyo integration. Their new strategy focused on calm, context-aware communication.
Their approach:
🔕 Silent retries for soft declines during the first two attempts
📬 Delayed messages using the Failed Billing metric in Klaviyo
🎯 Targeted outreach only after multiple failures or unrecoverable errors
The impact:
⏱️ Faster median recovery timeline
📉 Fewer unnecessary subscriber interruptions
💡 A smoother, more aligned customer experience
Check Out Smart Dunning for Yourself!
Book a demo to see how Smart Dunning can help your brand recover more revenue with less churn.
Recovery that works. Results you can see.
