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6 Reasons Subscription Companies Are Taking Over The World

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http://bit.ly/ShortStoryZ See the magic of recurring revenue exposed and understand the 6 fundamental reasons subscription companies are at the top.You will learn the business value of strong customer …

http://bit.ly/ShortStoryZ See the magic of recurring revenue exposed and understand the 6 fundamental reasons subscription companies are at the top.You will learn the business value of strong customer relationships. How top performing companies are leveraging revenue to win. How to keep your solution from becoming “shelfware”

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  • 1. The 6 Reasons Subscription Companies are Taking Over the World Why Zuora Zuora Provides a BluePrint to Succeed in the Subscription Economy! B y Tr a v i s H u c h Z U O R A Slide 1 − Zuora Confidential, not for distribution beyond intended recipient
  • 2. Let’s Make this Interactive Poll: Who owns pricing of your products/services? (Group or Role) Q&A @zuora @travishuch Slide 2 − Zuora Confidential, not for distribution beyond intended recipient
  • 3. The Market Momentum of SaaS is Undeniable Slide 3 − Zuora Confidential, not for distribution beyond intended recipient
  • 4. You can have Subscription without SaaS, But you can’t have SaaS without Subscription Slide 4 − Zuora Confidential, not for distribution beyond intended recipient 4
  • 5. A Look at Price to Sales Ratios Stock Market Cap Workday 17.26B Price to Sales TTM 42.94 Netsuite 8.68B 20.25 Salesforce.com 38.39B 10.25 FireEye 11.11B Marketo 1.58B 62.59 Infinite Adobe 33.77B Informatica 4.49B 4.67 Oracle 172B 4.57 Slide 5 − Zuora Confidential, not for distribution beyond intended recipient 16.52 pricing options 8.42
  • 6. What about the Private Companies? Stock Est. Valuation DropBox 10B Box 2B Docusign 1.65B SurveyMonkey 1.3B Zendesk 1B+ Zuora N/A Okta N/A Slide 6 − Zuora Confidential, not for distribution beyond intended recipient Infinite pricing options
  • 7. But These Are Trailing Indicators Slide 7 − Zuora Confidential, not for distribution beyond intended recipient
  • 8. Why is The Subscription Model Better? Slide 8 − Zuora Confidential, not for distribution beyond intended recipient
  • 9. 1 Recurring Model Drives a Real Relationship Vendors can now understand whether customer is getting value Sometimes relationship is inherent, other times it’s built Slide 9 − Zuora Confidential, not for distribution beyond intended recipient Infinite pricing options
  • 10. 2 1 Recurring revenue is predicable Infinite pricing options CRM Slide 10 − Zuora Confidential, not for distribution beyond intended recipient NUAN
  • 11. 3 1 Customers are selecting subscriptions EIU data here Infinite pricing options Slide 11 − Zuora Confidential, not for distribution beyond intended recipient
  • 12. 4 1 Subscriptions are better aligned with value • • • Easier to start Can grow as usage grows Consumption-based Slide 12 − Zuora Confidential, not for distribution beyond intended recipient
  • 13. 5 1 Recurring revenue minimizes risk • No more big bang multi-year projects • 80% failure rate on big B2B enterprise software projects • A one year subscription for most applications is less than an enterprise POC Slide 13 − Zuora Confidential, not for distribution beyond intended recipient
  • 14. 6 1 Subscription drives continuous innovation • Ongoing enhancements • Shared infrastructure • Ability to collaboratively build solutions • Consumers expect vendor to continually earn the business Infinite pricing options • The onus is on the vendor to provide continuous value throughout my lifetime as a customer Slide 14 − Zuora Confidential, not for distribution beyond intended recipient
  • 15. What Are the Downsides? 1. Cash flow 2. Customers can move away quickly 3. The sales cycle never ends 4. If you can’t control churn the formula doesn’t work Infinite pricing options Slide 15 − Zuora Confidential, not for distribution beyond intended recipient
  • 16. You Need To Touch Your Customer Slide 16 − Zuora Confidential, not for distribution beyond intended recipient
  • 17. How Does This Work in Real Life? Slide 17 − Zuora Confidential, not for distribution beyond intended recipient 17
  • 18. Several Integration Touchpoints in B2A CRM Provisioning Entitlement Website Subscription Commerce Product Catalog Usage Subscription Mgmt Billing Operations Quotes & Orders Payment Operations Renewals Payment Gateway GL Usage A subscription business requires efficient process flows Slide 18 − Zuora Confidential, not for distribution beyond intended recipient
  • 19. Case Study KNOW Docusign now has complete visibility to renewals across its 20 million users. We now have all our metrics in one place from churn to monthly account balances to growth. Mike Dinsdale, Chief Financial Officer Slide 19 − Zuora Confidential, not for distribution beyond intended recipient
  • 20. Z-Business is used by 500+ Subscription Economy customers across multiple industries High Tech Devices SaaS Telecom Slide 20 − Zuora Confidential, not for distribution beyond intended recipient Cloud Infrastructure Media Education Healthcare 20
  • 21. Key Takeaways 1. Drives relationships 2. Makes your revenue more predictable 3. Customers like it better 4. Better alignment to valueInfinite pricing options 5. Reduces risk for the customer 6. Drives innovation Slide 21 − Zuora Confidential, not for distribution beyond intended recipient
  • 22. travis@zuora.com @travishuch Slide 22 − Zuora Confidential, not for distribution beyond intended recipient 22
  • 23. Slide 23 − Zuora Confidential, not for distribution beyond intended recipient 23
  • 24. Credits • • • • What’s the Future of Business? - Brian Solis PWC Global 100 Software Leaders - May 2013 Yahoo Finance Pando Daily http://pando.com/2013/05/21/memo-to-this-years-ycInfinite class-its-damn-hard-to-build-an-enterprise-company/ pricing options Slide 24 − Zuora Confidential, not for distribution beyond intended recipient

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