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Scaling Sales & Billing Operations in the Subscription Economy (Accelerate East)

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The COO's Guide

The COO's Guide

Published in: Business, Economy & Finance
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  • 1. Scaling  Sales  and  Billing   Opera;ons  in  the     Subscrip;on  Economy   Guillaume  Vives   SVP,  Product  &  Professional  Services   @gyvives 1 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 2. In  The  Subscrip;on  Economy,     Focus  Is  On  Rela;onships   BUY NOW Product 2 SUBSCRIBE Relationships Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 3. The  Quote  to  Cash  Process  in     the  Subscrip;on  Economy   Traditional one-time charge economy Quo$ng   Ordering   Fulfillment/ Shipping   Invoicing   Payment/ Collec$on   Accoun$ng   What is different with the Subscription Economy? Invoice   Payment   Invoice   Invoice   Quote   Order   Payment   Payment   Subscrip4on   Revenue  event   Upsell   Upsell   Upsell   Order   Order   Revenue  event   Revenue Recognition Revenue  event   Order   Provisioning   3 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 4. Quote  to  Cash  to  Accoun;ng  in     the  Subscrip;on  Economy   Invoice   Payment   Invoice   Invoice   Quote   Order   Payment   Payment   Subscrip4on   Revenue  event   Upsell   Upsell   Upsell   Order   Order   Revenue  event   Revenue Recognition Revenue  event   Order   Provisioning   Sales Ops (aka Front End) 4 Billing Ops & Revenue Ops (aka Back End) Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 5. Two  Sides  of  the  Same  Coin   Subscription Sales Operations •  •  •  •  •  •  5 Quoting Ordering Sales Commission Subscription Management Provisioning Upsells Billing & Revenue Operations •  •  •  •  Invoicing Collection/Payment Churn Prevention Revenue Recognition Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 6. Two  Sides  of  the  Same  Coin   Sales Operations •  •  •  •  •  •  6 Quoting Ordering Sales Commission Subscription Management Provisioning Upsells Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 7. Sales  Opera;ons:  The  Fundamental  Changes   Your  Sales  Organiza;on 1   2   Con4nuous  Revenue  Increase  of  Install  Base   3   7 Reducing  cost  of  sales   Op4mizing  Sales  Team  for  Max  Efficiency   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 8. Sales  Opera;ons:   Sales  Compensa;on How  do  you  pay  your   sales  reps?   Dimensions  Available:     What  are  your   business  objec;ves?   How  do  you  deal  with   churn  or  downsell?   ACV  on  bookings  or  collec$ons           is  a  good  base  for  the   compensa$on  plan.   ACV   TCV   Contracted  Ramp   Long-­‐term  success  &   commitment?   Upsell   TCV,  upsells,  and  renewals           are  good  elements  of  a   compensa$on  plan.       Usage  /  Overage   8 Market  Capture?   COO Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 9. Sales  Opera;ons:   Systems  and  Automa;on Marke$ng   Automa$on   Freemium     Website   Marke$ng     Online  Sign-­‐up  &   Account  Mngmnt   Quo$ng   automa$on   CRM   CPQ   9 Big   Data   Usage   Analysis   Provisioning   Trend  &  PaNern     of  Usage   Provisioning   En$tlement   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 10. Sales  Opera;ons:   The  Metrics  That  MaPer •  •  10 Cost  of  Sales  Ops/Sales   –  From  1/2  to  1/12   Opera4onal  Metrics   –  Web  visits  to  hand  raise   –  Hand  raise  to  opportunity   (Freemium?)   –  Qualified  Freemium  users   –  Opportunity  to  close   –  Upsell,  Add-­‐ons:  MRR  growth  per   customer   –  ACV;  TCV;  Contracted  Ramp   –  Down-­‐sell  and  Churn   Awareness to Hand Raises Hand Raise to Opportunity Qualified Closed New Customers MRR Growth Via Upsells & Add-Ons Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 11. Two  Sides  of  the  Same  Coin   Subscription Sales Operations •  •  •  •  •  •  11 Quoting Ordering Sales Commission Subscription Management Provisioning Upsells Billing & Revenue Operations •  •  •  •  Invoicing Collection/Payment Churn Prevention Revenue Recognition Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 12. Two  Sides  of  the  Same  Coin   Billing & Revenue Operations •  •  •  •  12 Invoicing Collection/Payment Churn Prevention Revenue Recognition Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 13. Billing  &  Revenue  Opera;ons:   Billing  Organiza;on Scaling and Automation •  •  •  13 Billing processes Invoice complexity Payments Managing a Complex Process Understanding the subscription is critical to managing a complex Revenue Recognition process. Build Customer Relationships This is a mindset change •  Churn prevention (with Customer Care) •  Upsell opportunity (with Sales) Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 14. Billing  &  Revenue  Opera;ons:   The  Metrics  That  MaPer DSO / Collections Revenue Recognition Deferred  revenue  balance   MRR  Growth   14 $ of Billing Operations per $ of MRR Time to Bill Zuora confidential, shared under non-disclosure and subject to disclaimer notice Churn Prevention = Customer Satisfaction
  • 15. Sales  &  Billing  Opera;ons  Need  to  Be   Integrated/Automated  to  Be  Successful ü  Transactions growth ü  Customer interactions ü  Sales channels ü  Cost of sales ü  Introductory price point ü  Cost of operations 15 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 16. Lessons  From  Our  Customers   1.  Consider  puSng  Sales  Ops  and  Billing  Ops  together   2.  Remember  that  Commerce  is  about  rela4onships   so  interac4ons  are  important   3.  Commerce  is  mul4-­‐channel   4.  It  needs  to  be  designed  as  an  end-­‐to-­‐end  process   around  the  subscrip4on   5.  Without  automa4on,  there  is  no  scale   16 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 17. The  COO  Perspec;ve   Meet  The  Panelists   LivePerson Rob Janecek Director of Business Systems Versature Jonathan Moody COO LinkBermuda Winston Morton VP IT @winstonmorton Intralinks   IPR  Interna4onal   VP  Informa$on   Technology  &   Architecture   EVP,  Technology  &   Security   Adolfo  Carreno   Zuora Ben Kwon VP, Chief of Staff 17 Zuora confidential, shared under non-disclosure and subject to disclaimer notice Kelly  Torrence  
  • 18. Round  Table  –  Share  Your  Input   1.  Renewals  –  How  do  you  do  it  today?  Key   challenges?  Lessons  Learned?     2.  Sales  Ops  and  Billing  Ops  Collabora4on  –  Key   opportuni$es  and  challenges   3.   (Bonus)  Sales  compensa4on  –  What  works   best:  model  focused  on  market  capture  or   long  term  revenue  op$miza$on   18 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  • 19. END 19 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

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