Subscribed 2013 Europe: CEO's Keynote


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Subscribed 2013 Europe: CEO's Keynote

  1. 1. 2001! 2011   BUY NOW By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models. April 2011: Building a Strategy for the Subscription Economy TheWorldisMovingtoaSubscriptionEconomy
  2. 2. Amazon Prime slide
  4. 4. Zuora Receives £36m For European Expansion It’s Spreading Around the Globe
  5. 5. The Global 2000
  6. 6. The Zuora Community is Ground Zero
  7. 7. 20Billion Contracted Invoice Volume
  8. 8. 1 New Product Created Every Hour On Average …
  9. 9. The Face of Innovation
  10. 10. 10X Growth 10,012,288 1,536,533 AUG 2012 AUG 2013
  11. 11. Investing in Technology
  12. 12. 25X 10X60X Faster Syncs Faster bill runs More capacity
  13. 13. Customer Success Staff 2012 2013 Investing in Customer Success
  14. 14. 100 90 93 91 95 98 94 96 97 97 0 25 50 75 100 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 “Got my answer in 7 minutes!” Ruggero Ferreti , “Am very satisfied with the prompt responses to my query. Gelai is very helpful ” Nicoal Wylie, “Lightning Fast!” Jason Goodworth,
  15. 15. Why is All This Happening?
  16. 16. Technology  Trends   Smart  Money  Business  Model  Demand   Mobile   Social   Businesses  want  to  subscribe   to  services   Consumers  want  to   subscribe  to  services   Wall  St.  and  Sand  Hill  Value   Subscrip=on-­‐Based   Companies     Cloud  
  17. 17. Today, there is a Better Way To Build a Business
  18. 18. Business Should Be Built on Win / Win Relationships
  19. 19. Business Should Be Built on Stable Recurring Revenue
  20. 20. Business Should Be Built on Efficient use of resources
  21. 21. Win/Win Relationships One-time transactions Better Businesses are Focused on Sustainable, forward-looking revenue   Efficient, consumption- based services Fair, value-based pricing Backwards-looking financial reporting   Shipping unit after unit Fixed, cost-plus pricing
  22. 22. The Subscription Economy IsABetter Way of Doing Business
  23. 23. Building Better Businesses
  24. 24. We analyzed 6 years of data 1 million conversations with people building better businesses
  25. 25. “What is the best way to price?”
  26. 26. “How do I reduce churn?”
  27. 27. “How should I compensate my sales force?”
  28. 28. “How do I reduce the number of failed credit card transactions?”
  29. 29. “Should I charge a setup or implementation fee?”
  30. 30. “How do I account for multi-year contracts?”
  31. 31. “As I expand internationally, what payment or tax issues will I encounter?”
  32. 32. “Should I offer monthly or annual billing periods?”
  33. 33. We analyzed 6 years of data A picture starts to emerge
  34. 34. You are trying to PriceAcquireBillCollectNurtureAccountMeasureIterateScale
  35. 35. You are trying to Price Acquire Bill Collect Nurture Account Measure Iterate Scale
  36. 36. Price 11% Acquire 12% Bill 14% Collect 12% Nurture 11% Account 11% Measure 9% Iterate 11% Scale 9% Support Cases Categorized By 9 Things
  37. 37. Introducing  the  9  Keys  to  Success  in  the  Subscrip=on  Economy    
  39. 39. Simple per-unit pricing Infinite pricing options
  40. 40. 2220000000   ?   A new way to think about pricing
  41. 41. Increase Cash Flow Drive Down Cost of Sales Outflank the competition Grab Market Share Increase Loyalty and Retention Pivot into a new segment Expand Internationally
  42. 42. TheAbility to Price in support of your business goals is the first Key for Success in the Subscription Economy
  43. 43. Itsoundseasy
  44. 44. Billing Gateways fulfillment provisioning Immediate or delayed payment Connect to CRM Notify Connect to accounting Self service vs assisted flows Butit’sHarderThanItSeems
  45. 45. We live in a B2Any world B2C B2B
  46. 46. The Ability to Quickly Acquire Customers in a B2Any World is the second Key for Success in the Subscription Economy  
  47. 47. Billing used to be simple Ship Bill
  48. 48. $10   new customers Existing customers Pro-rate Usage Ship Bill
  49. 49. Confused  customers   Weeks  to  generate  bills   Billing  Errors   Lost  Revenue   1   2   3   4   Everybillisaninteractionwithyourcustomer “But  I  signed  up  for  the   $100/month  plan”  
  50. 50. The Ability to Create Accurate, Clear Invoices at Scale is the third Key for Success in the Subscription Economy  
  51. 51. Electronic payments Non-electronic payments Credit Cards Debit Cards Wire transfers Catch exceptions Multiple card types Country specific banking rules Retries Card updaters Manual Lockbox Receive payment Notify delinquents Write off payment ReconcileSuspend service
  52. 52. The need to automate ACH
  53. 53. Handling of Exceptions
  54. 54. The Ability to Tame the Complexity of Payments is the fourth Key for Success in the Subscription Economy  
  55. 55. Build Valuable Relationships
  56. 56. The Secret: Give Customers Control of the Relationship
  57. 57. Remember the 2nd Key: Acquire? Subscribe
  58. 58. That Was Just the Beginning Subscribe Renew Suspend Add-on Upgrade
  59. 59. Sign  up   Validate  CC   Validated   Create  Bill   Process   Payment   Create   Account   Link  Account   Confirm  Sign   Up   Welcome   Email   Create   Subscrip=on   Provision   Service   WEBSITE  BILLING  CRM  PLATFORM  
  60. 60. The Ability to Nuture And Develop Deeper Customer Relationships is the fifth Key for Success in the Subscription Economy  
  61. 61. “I’ve got this massive spreadsheet I use to track Revenue”
  62. 62. “It’s Taking Longer and Longer to Close My Books”
  63. 63. “It’s becoming harder to harder to reconcile financial info across all my different systems”
  64. 64. “The IT department used to be known as Dr. No …. But now, it’s the finance department”
  65. 65. There’s no accounting for subscriptions Booking Subscription Billing Cash Revenue
  66. 66. The Ability to Easily and Quickly Account for Bookings, Billings, Cash and Revenue is the sixth Key for Success in the Subscription Economy  
  67. 67. You used to track these metrics Revenue  $100        COGS              (30)   Gross  Profit  70     Opera=ng  Expenses   S&M  (20)   G&A  (10)   R&D                    (20)   Total  Op  Ex  (50)       Net  Income  $20  
  68. 68. Now you track these metrics ARR  $100        Churn              (10)   Net  ARR  90        COGS  (20)      G&A  (10)      R&D                    (20)   Recurring  Profit  40       Growth  (40)   Net  New  ARR  40     Ending  ARR    $130    
  69. 69. Your current applications don’t give you the metrics you need
  70. 70. The Ability to Instantly Access Subscription Economy Metrics is the seventh key for Success in the Subscription Economy  
  71. 71. Pricing iteration is crucial to support growth
  72. 72. You can’t afford this … “The next available engineer will see you in 6 months”
  73. 73. The ability to Rapidly Iterate On Your Pricing and Acquisition Strategies is the eighth key for Success in the Subscription Economy  
  74. 74. Why build all this into your service? Pricing Payments Taxation Billing Rev Rec Secure Mission Critical Scalable Rating
  75. 75. When you could do this?
  76. 76. Integratewithanecosystemthatsupportsyour service Customer   support   Inventory   Fulfillment   EnJtlements   Website   Provisioning   Commerce   Billing   Finance     Payments   GL   quoJng   orders   invoices   checks   events   account   status   account   balance   metrics  
  77. 77. The ability to Run on a Scalable, Reliable, Mission Critical Infrastructure is the ninth key for Success in the Subscription Economy
  78. 78. Introducing  the  9  Keys  to  Success  in  the  Subscrip=on  Economy    
  79. 79. These are the 9 Keys to Success in the Subscription Economy
  80. 80. These are the 9 Keys to Building a Better Business
  81. 81. Build a Business Live the 9 Keys Join the Revolution
  82. 82. Join  the  RevoluJon     via  the  Subscribed  Mobile  App     via  Manifesto  signing  sta=ons     #subscripJonmanifesto  
  83. 83. Thank you to our sponsors. #subscribed13
  84. 84. Mobile App Customer  Lead  Sessions   Product  Vision  Keynote   Do not miss. #subscribed13 Cocktail  RecepJon   Zuora  Demo  Booth  
  85. 85. Get your mobile app. Search your app store for “Subscribed” Download Accept push notifications for conference updates #subscribed13