Your SlideShare is downloading. ×
0
The 6 Reasons
Subscription
Companies are
Taking Over the
World Why Zuora
Zuora Provides a BluePrint to Succeed in the Subs...
Let’s Make this Interactive

Poll: Who owns pricing of your
products/services? (Group or Role)
Q&A
@zuora
@travishuch

Sli...
The Market Momentum
of SaaS is Undeniable

Slide 3 − Zuora Confidential, not for distribution beyond
intended recipient
You can have
Subscription without SaaS,
But you can’t have
SaaS without Subscription

Slide 4 − Zuora Confidential, not fo...
A Look at Price to Sales Ratios
Stock

Market Cap

Workday

17.26B

Price to Sales
TTM
42.94

Netsuite

8.68B

20.25

Sale...
What about the Private Companies?
Stock

Est. Valuation

DropBox

10B

Box

2B

Docusign

1.65B

SurveyMonkey

1.3B

Zende...
But These Are Trailing Indicators

Slide 7 − Zuora Confidential, not for distribution beyond
intended recipient
Why is The Subscription Model Better?

Slide 8 − Zuora Confidential, not for distribution beyond
intended recipient
1

Recurring Model Drives
a Real Relationship

Vendors can now understand
whether customer is getting value
Sometimes rela...
2
1

Recurring revenue is
predicable

Infinite
pricing options
CRM

Slide 10 − Zuora Confidential, not for distribution be...
3
1

Customers are selecting
subscriptions

EIU data here

Infinite
pricing options

Slide 11 − Zuora Confidential, not fo...
4
1

Subscriptions are better
aligned with value

•
•
•

Easier to start
Can grow as usage grows
Consumption-based

Slide ...
5
1

Recurring revenue
minimizes risk

• No more big bang multi-year projects
• 80% failure rate on big B2B
enterprise sof...
6
1

Subscription drives
continuous innovation

• Ongoing enhancements

• Shared infrastructure
• Ability to collaborative...
What Are the Downsides?

1. Cash flow
2. Customers can move away quickly

3. The sales cycle never ends
4. If you can’t co...
You Need To Touch
Your Customer

Slide 16 − Zuora Confidential, not for distribution beyond
intended recipient
How Does
This Work
in Real
Life?

Slide 17 − Zuora Confidential, not for distribution beyond
intended recipient

17
Several Integration Touchpoints in B2A
CRM
Provisioning
Entitlement

Website

Subscription Commerce
Product Catalog
Usage
...
Case Study
KNOW

Docusign now has
complete visibility to

renewals across its
20 million users.
We now have all our metric...
Z-Business is used by 500+
Subscription Economy customers
across multiple industries

High Tech

Devices

SaaS

Telecom

S...
Key Takeaways

1. Drives relationships
2. Makes your revenue more predictable
3. Customers like it better
4. Better alignm...
travis@zuora.com
@travishuch

Slide 22 − Zuora Confidential, not for distribution beyond
intended recipient

22
Slide 23 − Zuora Confidential, not for distribution beyond
intended recipient

23
Credits

•
•
•
•

What’s the Future of Business? - Brian Solis
PWC Global 100 Software Leaders - May 2013
Yahoo Finance
Pa...
Upcoming SlideShare
Loading in...5
×

6 Reasons Subscription Companies Are Taking Over The World

2,170

Published on

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”

Published in: Technology

Transcript of "6 Reasons Subscription Companies Are Taking Over The World"

  1. 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. 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. 3. The Market Momentum of SaaS is Undeniable Slide 3 − Zuora Confidential, not for distribution beyond intended recipient
  4. 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. 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. 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. 7. But These Are Trailing Indicators Slide 7 − Zuora Confidential, not for distribution beyond intended recipient
  8. 8. Why is The Subscription Model Better? Slide 8 − Zuora Confidential, not for distribution beyond intended recipient
  9. 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. 10. 2 1 Recurring revenue is predicable Infinite pricing options CRM Slide 10 − Zuora Confidential, not for distribution beyond intended recipient NUAN
  11. 11. 3 1 Customers are selecting subscriptions EIU data here Infinite pricing options Slide 11 − Zuora Confidential, not for distribution beyond intended recipient
  12. 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. 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. 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. 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. 16. You Need To Touch Your Customer Slide 16 − Zuora Confidential, not for distribution beyond intended recipient
  17. 17. How Does This Work in Real Life? Slide 17 − Zuora Confidential, not for distribution beyond intended recipient 17
  18. 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. 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. 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. 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. 22. travis@zuora.com @travishuch Slide 22 − Zuora Confidential, not for distribution beyond intended recipient 22
  23. 23. Slide 23 − Zuora Confidential, not for distribution beyond intended recipient 23
  24. 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
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×