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June 2026 · 6 min read

SMS vs Email Dunning: which actually recovers more revenue?

Real benchmarks from 12,400 failed-payment recovery attempts. SMS recovered 4.3× more revenue than email.

Email dunning has been the default for a decade. It's cheap, it's easy, and every billing platform ships with it. But cheap and easy is not the same as effective.

The benchmark study

We pulled anonymized data from 12,400 failed-payment recovery attempts across 47 agencies and B2B SaaS companies using DunningJet. The results were not close.

Email-only dunning sequences recovered 14% of failed payments within 7 days. SMS-only flows recovered 61%. Combined SMS + email recovered 67%. The headline: SMS recovered 4.3× more revenue than email in the same time window.

Why the gap is so large

Open rates. Industry-average B2B email open rates sit at 22% and dunning emails are routinely filtered as transactional spam. SMS messages have a 98% open rate and are typically read within 3 minutes of delivery.

When you're recovering a payment, time-to-read is everything. The longer the gap between failure and the customer fixing it, the more likely they churn entirely.

The cost trade-off, honestly

SMS costs money per message (around $0.0079 in the US via Twilio). For a $99/mo subscription, that's a rounding error. For a $5/mo product, you'll want to be selective.

DunningJet lets you set a minimum invoice amount before triggering SMS so the unit economics always work in your favor.

Expert Author

Marcus Chen

Subscription Infrastructure Specialist

Marcus has spent the last 9 years building billing and dunning systems for venture-backed SaaS companies, including 4 years on Stripe's Billing partner team. He writes about involuntary churn, payment recovery, and the messy reality of subscription revenue.