Lemon Squeezy has built-in recovery and dunning features to help you recover lost revenue from abandoned carts and subscription payment failures. These features can be managed via the Recovery settings page in your store.
Enable this setting to send a reminder email to customers who have a subscription that is about to renew. The email will be sent 7 days before the renewal date.
Due to the nature of subscription payments, they can sometimes fail during a billing cycle. This can happen for a number of reasons, such as the customer's card having expired, their payment method having insufficient funds, or a temporary issue with their bank.
When this happens, Lemon Squeezy will automatically retry the payment 4 times over the course of 2 weeks. Each time a payment fails, the customer will be notified by email and asked to update their billing information. During this period, the subscription will appear as "past due" in the dashboard, will remain active and the customer will continue to have access to the subscription's content.
When the final payment fails, the subscription will become "unpaid" and the customer will lose access to the subscription's content. At this point, our dunning features will kick in.
Dunning is the process of recovering lost revenue from unpaid subscriptions. When a subscription becomes "unpaid", Lemon Squeezy will automatically send multiple dunning emails to the customer over a specified period of time. These emails will include a link to a payment page where the customer can update their billing information and re-activate their subscription. The number of emails, including their content and schedule, can be customized via the Recovery settings page in your store.
After a certain period of time (which can be configured), you can choose to automatically cancel the subscription. This will prevent the customer from re-activating the subscription in the future. However, you can also choose to leave the subscription as "unpaid" which will allow the customer to re-activate it at any time in the future.