Smart Dunning: AI-Powered Collections

Overview

Smart Dunning is a Pulse AI feature that uses artificial intelligence to optimize your collections process. Instead of sending generic overdue notices on a fixed schedule, Smart Dunning analyzes each member's behavior patterns to determine the best time, channel, and message content to maximize payment recovery.

What Is Smart Dunning?

Traditional dunning (collections messaging) follows a fixed schedule: send an email on day 1, another on day 7, and a final notice on day 14. This one-size-fits-all approach ignores the fact that different members respond to different approaches.

Smart Dunning uses Pulse AI to:

• Optimize timing — Determine the best day and time to contact each member based on their past responsiveness patterns.
• Select the best channel — Choose between email and SMS based on which channel the member is more likely to engage with.
• Generate personalized content — Use AI to craft dunning messages tailored to the individual member's situation and communication history.

How Smart Dunning Works

Data Analysis

Pulse AI analyzes several data points for each overdue member:

• Past payment history (how quickly they typically resolve issues).
• Communication engagement (email open rates, SMS response rates).
• Attendance patterns (recently active vs. long-absent).
• Historical dunning response (which past messages prompted action).

AI Message Generation

When Smart Dunning triggers a message, Pulse AI drafts the content using Claude. The message is:

• Written in a tone appropriate to the member's relationship and overdue stage.
• Personalized with the member's name, specific amount owed, and relevant context.
• Optimized for the selected channel (shorter for SMS, more detailed for email).

All AI-generated messages are based on your templates and adhere to your gym's branding and tone. The AI enhances your templates rather than replacing them entirely.

Channel and Timing Optimization

For each overdue account, Smart Dunning determines:

• When to send — The time of day and day of week most likely to get a response from this specific member.
• How to send — Whether email or SMS (or both) has the highest engagement likelihood.
• How often — The optimal interval between messages for this member, rather than a fixed schedule.

Enabling Smart Dunning

1. Navigate to Settings > Billing.
2. Toggle Smart Dunning (Pulse AI) on.
3. Review the default settings:
   • Maximum messages per member — Cap the number of dunning messages sent per overdue cycle (default: 5).
   • Minimum days between messages — Prevent over-contacting (default: 2 days).
   • Channels enabled — Enable or disable email and SMS for AI-optimized dunning.
4. Click Save.

Smart Dunning requires Pulse AI to be active on your account. AI usage is tracked and subject to your organization's AI credit limits.

Dunning Message Templates

Smart Dunning uses your existing dunning templates as a foundation and enhances them with AI-generated content.

Reviewing Templates

1. Go to Marketing > Communications and open the Templates tab.
2. Find the dunning-specific templates:
   • Dunning: First Reminder
   • Dunning: Follow-Up
   • Dunning: Final Notice
3. Edit the templates to match your preferred tone and messaging.

Templates support {{variable}} placeholders:

• {{first_name}} — Member's first name.
• {{amount_owed}} — Outstanding balance.
• {{due_date}} — Original due date.
• {{days_overdue}} — Number of days past due.
• {{update_payment_link}} — Direct link to update payment method.

The AI uses these templates as guidelines while adding personalized touches for each member.

Viewing Dunning Effectiveness Metrics

Track how well Smart Dunning is performing:

1. Navigate to Billing > Collections.
2. The dashboard shows:
   • Recovery rate — Percentage of overdue accounts resolved through Smart Dunning.
   • Average recovery time — How many days it takes to collect overdue payments.
   • Channel performance — Which channel (email vs. SMS) has higher engagement.
   • AI vs. standard comparison — Side-by-side metrics comparing Smart Dunning to standard fixed-schedule dunning.
   • Message engagement — Open rates, click rates, and response rates for dunning messages.

Interpreting Results

• A recovery rate above 70% indicates strong dunning performance.
• If SMS consistently outperforms email for your members, consider prioritizing SMS as the primary dunning channel.
• Review the AI vs. standard comparison to confirm that Smart Dunning is providing measurable improvement over fixed schedules.

Tips

• Let Smart Dunning run for at least 30 days before evaluating its effectiveness. The AI improves as it collects more data.
• Keep your dunning templates professional and empathetic. The AI mirrors your tone.
• Set reasonable message caps to avoid overwhelming members and potentially triggering complaints.
• Combine Smart Dunning with manual follow-ups for high-value overdue accounts.