Scaling	
  Sales	
  and	
  Billing	
  
Opera;ons	
  in	
  the	
  	
  
Subscrip;on	
  Economy	
  
Guillaume	
  Vives	
  
SV...
In	
  The	
  Subscrip;on	
  Economy,	
  	
  
Focus	
  Is	
  On	
  Rela;onships	
  

BUY NOW

Product

2

SUBSCRIBE

Relati...
The	
  Quote	
  to	
  Cash	
  Process	
  in	
  	
  
the	
  Subscrip;on	
  Economy	
  
Traditional one-time charge economy
...
Quote	
  to	
  Cash	
  to	
  Accoun;ng	
  in	
  	
  
the	
  Subscrip;on	
  Economy	
  
Invoice	
  

Payment	
  

Invoice	
...
Two	
  Sides	
  of	
  the	
  Same	
  Coin	
  

Subscription

Sales
Operations
• 
• 
• 
• 
• 
• 
5

Quoting
Ordering
Sales ...
Two	
  Sides	
  of	
  the	
  Same	
  Coin	
  

Sales
Operations
• 
• 
• 
• 
• 
• 
6

Quoting
Ordering
Sales Commission
Sub...
Sales	
  Opera;ons:	
  The	
  Fundamental	
  Changes	
  
Your	
  Sales	
  Organiza;on

1	
  

2	
  

Con4nuous	
  Revenue	...
Sales	
  Opera;ons:	
  
Sales	
  Compensa;on

How	
  do	
  you	
  pay	
  your	
  
sales	
  reps?	
  
Dimensions	
  Availab...
Sales	
  Opera;ons:	
  

Systems	
  and	
  Automa;on

Marke$ng	
  
Automa$on	
  
Freemium	
  	
  
Website	
  

Marke$ng	
 ...
Sales	
  Opera;ons:	
  

The	
  Metrics	
  That	
  MaPer

• 
• 

10

Cost	
  of	
  Sales	
  Ops/Sales	
  
–  From	
  1/2	
...
Two	
  Sides	
  of	
  the	
  Same	
  Coin	
  

Subscription

Sales
Operations
• 
• 
• 
• 
• 
• 
11

Quoting
Ordering
Sales...
Two	
  Sides	
  of	
  the	
  Same	
  Coin	
  

Billing & Revenue
Operations
• 
• 
• 
• 

12

Invoicing
Collection/Payment
...
Billing	
  &	
  Revenue	
  Opera;ons:	
  
Billing	
  Organiza;on

Scaling and
Automation
• 
• 
• 

13

Billing processes
I...
Billing	
  &	
  Revenue	
  Opera;ons:	
  
The	
  Metrics	
  That	
  MaPer

DSO / Collections

Revenue
Recognition
Deferred...
Sales	
  &	
  Billing	
  Opera;ons	
  Need	
  to	
  Be	
  
Integrated/Automated	
  to	
  Be	
  Successful

ü  Transaction...
Lessons	
  From	
  Our	
  Customers	
  
1.  Consider	
  puSng	
  Sales	
  Ops	
  and	
  Billing	
  Ops	
  together	
  
2. ...
The	
  COO	
  Perspec;ve	
  
Meet	
  The	
  Panelists	
  

LivePerson
Rob Janecek
Director of Business
Systems

Versature
...
Round	
  Table	
  –	
  Share	
  Your	
  Input	
  
1.  Renewals	
  –	
  How	
  do	
  you	
  do	
  it	
  today?	
  Key	
  
c...
END

19

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

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

  1. 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. 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. 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$ng   What is different with the Subscription Economy? Invoice   Payment   Invoice   Invoice   Quote   Order   Payment   Payment   Subscrip4on   Revenue  event   Upsell   Upsell   Upsell   Order   Order   Revenue  event   Revenue Recognition Revenue  event   Order   Provisioning   3 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  4. 4. Quote  to  Cash  to  Accoun;ng  in     the  Subscrip;on  Economy   Invoice   Payment   Invoice   Invoice   Quote   Order   Payment   Payment   Subscrip4on   Revenue  event   Upsell   Upsell   Upsell   Order   Order   Revenue  event   Revenue Recognition Revenue  event   Order   Provisioning   Sales Ops (aka Front End) 4 Billing Ops & Revenue Ops (aka Back End) Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  5. 5. Two  Sides  of  the  Same  Coin   Subscription Sales Operations •  •  •  •  •  •  5 Quoting Ordering Sales Commission Subscription Management Provisioning Upsells Billing & Revenue Operations •  •  •  •  Invoicing Collection/Payment Churn Prevention Revenue Recognition Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  6. 6. Two  Sides  of  the  Same  Coin   Sales Operations •  •  •  •  •  •  6 Quoting Ordering Sales Commission Subscription Management Provisioning Upsells Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  7. 7. Sales  Opera;ons:  The  Fundamental  Changes   Your  Sales  Organiza;on 1   2   Con4nuous  Revenue  Increase  of  Install  Base   3   7 Reducing  cost  of  sales   Op4mizing  Sales  Team  for  Max  Efficiency   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  8. 8. Sales  Opera;ons:   Sales  Compensa;on How  do  you  pay  your   sales  reps?   Dimensions  Available:     What  are  your   business  objec;ves?   How  do  you  deal  with   churn  or  downsell?   ACV  on  bookings  or  collec$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. 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. 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. 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. 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. 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. 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. 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. 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. 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$on   Technology  &   Architecture   EVP,  Technology  &   Security   Adolfo  Carreno   Zuora Ben Kwon VP, Chief of Staff 17 Zuora confidential, shared under non-disclosure and subject to disclaimer notice Kelly  Torrence  
  18. 18. Round  Table  –  Share  Your  Input   1.  Renewals  –  How  do  you  do  it  today?  Key   challenges?  Lessons  Learned?     2.  Sales  Ops  and  Billing  Ops  Collabora4on  –  Key   opportuni$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. 19. END 19 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
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