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JANUARY 2013




               Maximizing
               the Lifetime Value of Customers
About Scout Analytics

Solutions                             Markets and Customers
What do we do?
                                      Blue Chip Customers
● Provide Recurring Revenue           Across the Information Media and
  Management Solutions that           SaaS Markets
  Maximizes Customer Lifetime Value

How do we do it?                      100+ Customers
● Maximize Trial Conversions
● Increase Renewal Yields
● Minimize Churn                      $1.9B+ Under Optimization
● Optimize Rate Plan Pricing



                                                                  CONFIDENTIAL   |   2
Maximizing the Lifetime Value of Customers
     by Putting Usage Data to Work


    53%            17%              24%           78%
Reduction in    Increase in    Improvement     Increase in
   Churn       Renewal Yield    in Rate Plan      Trial
                                Performance    Conversions




                                                   CONFIDENTIAL   |   3
The Use It or Lose It Dynamic in Subscriptions
 (i.e., If Customers Don’t Use Your Service, You Lose Revenue)


SUBSCRIPTION                            ● Product Diversification
    REVENUE
                                        ● Revenue Growth
                                        ● Revenue Retention




                 ● Customer Churn
                 ● Product Churn
                 ● Seat Churn




                                                                    USAGE

                                                                     CONFIDENTIAL   |   4
Knowing Usage versus Revenue Predicts
 Revenue Optimizations
SUBSCRIPTION
    REVENUE



               Churn
               Risks
                       Cross-Sell Opportunities




                                        Pricing Inefficiencies



                                                             USAGE

                                                                 CONFIDENTIAL   |   5
The Challenge – Usage Data and CRM Data are
Isolated from Each Other

                   ✗                          ✗                          ✗
    Can’t be Searched                   Can’t Be Analyzed        Can’t Be Reported




    Subscription   Customer   Product
                                              ✗                      Usage



     Customer Relationship                                  System, Application, or
         Management                                               Web Logs


                                                                               CONFIDENTIAL   |   6
Scout Analytics™ Platform

           Yield                   Rate Plan              Customer Success
         Optimizer                 Optimizer                  Optimizer
  Analytics for Forecasting,   Analytics for Pricing      Analytics to Predict
   Negotiating, Quoting          and Packaging            and Prevent Churn
      and Trial Closing



           Marketing                                          Billing
          Automation                                        Automation

                                  Scout® Usage
                                    Data Hub

           Salesforce                                         Usage Data
          Automation                                   (Logs, Direct Collection)


                                                                         CONFIDENTIAL   |   7
Scout Analytics Puts Usage Data to Work in CRM Decisions

                        PRODUCT MANAGEMENT
                        ●   Pricing                ●   Release Planning
                        ●   Packaging              ●   Survey Targeting

                        MARKETING
                        ●   Offer Targeting
                        ●   Event Targeting

                        SALES
                        ●   Trial Closing          ●   Cross-Selling
                        ●   Renewal Pricing        ●   Forecasting
                        ●   Negotiating            ●   Compliance Monitoring

                        CUSTOMER SUCCESS
                        ●   Adoption Monitoring    ●   Program Targeting
                        ●   Retention Monitoring   ●   Survey Targeting

                        BILLING
                        ●   Invoicing

                                                                       CONFIDENTIAL   |   8
Scout® Usage Data Hub


                        ● On-demand Reporting
         Workflow       ● Scout Link Integration to CRM Ecosystems
     $
         Integration    ● Automated Exports

                        ● 30+ Subscription vs. Usage Correlated Metrics
         Predictive     ● Analytical Tools
         Analytics      ● Segmentation Tools

                        ● Multi-channel Usage Data including Mobile
         Big Data         and Offline
         Integration    ● Extensible Rules-based Usage Attribution
                        ● High-performance Analytical Data Store




                                                           CONFIDENTIAL   |   9
Demo
CONFIDENTIAL   |   11
Recurring Revenue Scorecard for Executives




                                             CONFIDENTIAL   |   12

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Overview.scout analytics

  • 1. JANUARY 2013 Maximizing the Lifetime Value of Customers
  • 2. About Scout Analytics Solutions Markets and Customers What do we do? Blue Chip Customers ● Provide Recurring Revenue Across the Information Media and Management Solutions that SaaS Markets Maximizes Customer Lifetime Value How do we do it? 100+ Customers ● Maximize Trial Conversions ● Increase Renewal Yields ● Minimize Churn $1.9B+ Under Optimization ● Optimize Rate Plan Pricing CONFIDENTIAL | 2
  • 3. Maximizing the Lifetime Value of Customers by Putting Usage Data to Work 53% 17% 24% 78% Reduction in Increase in Improvement Increase in Churn Renewal Yield in Rate Plan Trial Performance Conversions CONFIDENTIAL | 3
  • 4. The Use It or Lose It Dynamic in Subscriptions (i.e., If Customers Don’t Use Your Service, You Lose Revenue) SUBSCRIPTION ● Product Diversification REVENUE ● Revenue Growth ● Revenue Retention ● Customer Churn ● Product Churn ● Seat Churn USAGE CONFIDENTIAL | 4
  • 5. Knowing Usage versus Revenue Predicts Revenue Optimizations SUBSCRIPTION REVENUE Churn Risks Cross-Sell Opportunities Pricing Inefficiencies USAGE CONFIDENTIAL | 5
  • 6. The Challenge – Usage Data and CRM Data are Isolated from Each Other ✗ ✗ ✗ Can’t be Searched Can’t Be Analyzed Can’t Be Reported Subscription Customer Product ✗ Usage Customer Relationship System, Application, or Management Web Logs CONFIDENTIAL | 6
  • 7. Scout Analytics™ Platform Yield Rate Plan Customer Success Optimizer Optimizer Optimizer Analytics for Forecasting, Analytics for Pricing Analytics to Predict Negotiating, Quoting and Packaging and Prevent Churn and Trial Closing Marketing Billing Automation Automation Scout® Usage Data Hub Salesforce Usage Data Automation (Logs, Direct Collection) CONFIDENTIAL | 7
  • 8. Scout Analytics Puts Usage Data to Work in CRM Decisions PRODUCT MANAGEMENT ● Pricing ● Release Planning ● Packaging ● Survey Targeting MARKETING ● Offer Targeting ● Event Targeting SALES ● Trial Closing ● Cross-Selling ● Renewal Pricing ● Forecasting ● Negotiating ● Compliance Monitoring CUSTOMER SUCCESS ● Adoption Monitoring ● Program Targeting ● Retention Monitoring ● Survey Targeting BILLING ● Invoicing CONFIDENTIAL | 8
  • 9. Scout® Usage Data Hub ● On-demand Reporting Workflow ● Scout Link Integration to CRM Ecosystems $ Integration ● Automated Exports ● 30+ Subscription vs. Usage Correlated Metrics Predictive ● Analytical Tools Analytics ● Segmentation Tools ● Multi-channel Usage Data including Mobile Big Data and Offline Integration ● Extensible Rules-based Usage Attribution ● High-performance Analytical Data Store CONFIDENTIAL | 9
  • 10. Demo
  • 11. CONFIDENTIAL | 11
  • 12. Recurring Revenue Scorecard for Executives CONFIDENTIAL | 12