Secrets to Innovative Pricing and Packaging

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Secrets to Innovative Pricing and Packaging

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TO VIEW THE WEBINAR: http://info.zuora.com/MayPricingandPackaging_ArchiveLP.html ...

TO VIEW THE WEBINAR: http://info.zuora.com/MayPricingandPackaging_ArchiveLP.html

Pricing and packaging is the key to success for many subscription businesses, affecting both new customer acquisition and customer retention. While simple subscriptions to a service like Pandora may thrive for that audience, consumers of SaaS, Cloud and Communications businesses require offers and plans that are more custom-fit to their needs. It could be tiered pricing, charging for usage, upgrade plans, or segmented pricing, but finding the right pricing combinations makes the difference.

Zuora customer CollabNet has known this and experimented mercilessly to find the right price plans and packages for their customers. Join Guy Marion from CollabNet and Zuora's resident subscription business expert Kyle Christensen as we cover all of 2012's most innovative subscription pricing and packaging plans on this webinar.

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  • Thanks. Partnership.Your successBuilt for you---------I want to personally thank you for being here. I am very excited to have the opportunity to present our product vision.The turnout shows that you look at it the same way we do – as a true partnership.We love our customers. It’s our number one strategic objective and we live it and breath it everyday.We believe that our success is driven only by your success. We are in it for you to win it.Everything you’ll see here today is built around enabling your success.
  • We made a bold prediciton 4 years ago, that we were moving to a subscription economyBut you, in this room, are the leaders that made that happenYou are paving the wayYou are the ones telling us how this future is being shapedIt is because of you, that Gartner now predicts
  • There is going to be a mass migration away from Oracle and SAP
  • Slide titleWe are making commerce easy and available anywhereWe are extending our lead in billing.We are embarking on the final frontier, embracing finance and delivering unprecedented accounting and revenue functionalityAs Tien said, we believe ERP is going to be irrelevant in 5-10 years.But let’s be clear. We’re not arrogant enough to suggest that Zuora is going to make ERP irrelevant.The market is making ERP irrelevant. You are making ERP irrelevant.And Zuora has already emerged as THE enterprise business application powering the subscription economy.Thanks to all my senior product guys for their incredible work.Thanks to everyone in the audience for their help in building this vision, and for being pioneers in the subscription economy.Thanks for partnering with Zuora as we realize our vision.All of my product guys will be available after the session to answer questions and take feedback. I encourage you to track them down.Thanks again. And I’ll turn the stage over to Jeff to talk about what’s next at Zuora day.

Transcript

  • 1. Secrets to Innovative Subscription Pricing and Packaging
  • 2. Building the Next Great Enterprise Software CompanyZuora Signs Over $1 Billion InSubscription Revenue In Q1 Built by Experts Used by Leaders
  • 3. Meet the Panel Kyle Christensen Guy MarionSr. Director Product Marketing VP & GM CollabNet Cloud Serviceshttp://www.zuora.com http://codesion.com @kylechristensen @guy_marion
  • 4. Innovators in Software Development in the Cloud dPaaS Dev Cloud Agile Open ALM Platform SubversionFounded Hybrid Cloud Development Collaborative Development ALM Communities Platform ALM 1999 2000 2007 2008 2009 2011 2012 Trusted by Leaders
  • 5. CollabNet Cloud PlatformBackground• Best of breed development tool hosting, integration, and management• Replaces Codesion Cloud Platform (acquired in 2010) + 4,000 customers• Integrates cloud and on-premise• Business Grade platformBusiness Model• B2B SaaS/Cloud: Subscription Revenue• Direct: Self-service + transactional• Channels: Marketplace, product integrations, and Platform Partners• SaaS acquisition/BI engine CloudForge – the development platform (dPaaS) for managing hosted, integrated, and deployed applications
  • 6. Commerce Has Evolved. BUY NOW 2001 2011By 2015, 35% of Global 2000 companies will generaterevenue through subscription-based services andrevenue models. April 2011: Building a Strategy for the Subscription Economy
  • 7. The World is Shifting From Products to Services Technology Transportation? Retail? Music? A Video? Voice? Legal? Healthcare?We call this the Subscription Economy™
  • 8. The Subscription Economy Imposes a CompletelyDifferent Set of Operating Rules on Business SystemsProduct Economy Subscription Economy Sell Units Monetizing Customer Relationships Price Per Unit Pay-as-you-Go Pricing Plans One-Time Orders Multiple Orders Over a Lifetime Forced to Pick a Customer Segment Sell to Consumers & Businesses Silos of Financial Time-Based, Interrelated Bookings, Data Billings, & Revenue
  • 9. The Subscription Economy Demands a New Platform BUY NOW http://www.readwriteweb.com/cloud/2010/06/zuora-announces-z-commerce-for.php
  • 10. The World’s First Application Suite Built for the Subscription Economy Subscription Subscription SubscriptionCommerce Billing Finance We found Zuora and the light bulb went off: a business operations platform designed especially for subscription businesses like ours.
  • 11. How Are Companies Pricing in the Subscription Economy?
  • 12. Strategy #1: Freemium Upsell Strategy Start with free and upsell to paid.
  • 13. Strategy #2: Multiple Edition Strategy Multipleeditions for differentaudiences.
  • 14. Strategy #3: Promotional Strategies Start with a free trial. 2-months free with annualprepayment.
  • 15. Strategy #4: Pay-as-you-Go Strategy Pricing based on consumption units.
  • 16. Strategy #5: Overage StrategyOverage pricingapplied beyondallocated usage.
  • 17. Strategy #6: Bundling Strategy Create flexible pricing & packaging bundles.
  • 18. Strategy #7: Segmentation Strategy A US Pricing B Asia Pricing Have unique pricing for different markets and/or different types of customers.
  • 19. CollabNet’s Cloud Journey
  • 20. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”)
  • 21. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”)
  • 22. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales)
  • 23. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales) 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion)
  • 24. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales) 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion) Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)
  • 25. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business 2000% Revenue expansion & automation (B2B SaaS – Velocity Sales) Increase 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion) Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)
  • 26. What Else Can We Tell You?
  • 27. Sign Up for a Free Trial at http://codesion.com
  • 28. Sign Up for a Free Trial at www.zuora.com
  • 29. Thank You!
  • 30. <end>