It definitely depends on the type of customer and type of product. There is a % of recoveries that will churn in the following 1-2 billing cycles and there's a larger % that will stay longer. Ultimately increasing recovery rate across the board means more revenue, which is good for a business.
Error type is also not indicative of customer quality. For example, businesses and consumers set limits on their cards all the time so an insufficient funds error doesn't mean they have no money.
If the customer doesn't want the service they have the option to cancel. This is why the LTV of customers recovered after a payment failure (involuntary churn prevention) is significantly higher than those saved from cancellation prevention flows (active churn prevention).
Error type is also not indicative of customer quality. For example, businesses and consumers set limits on their cards all the time so an insufficient funds error doesn't mean they have no money.
If the customer doesn't want the service they have the option to cancel. This is why the LTV of customers recovered after a payment failure (involuntary churn prevention) is significantly higher than those saved from cancellation prevention flows (active churn prevention).