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  • 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. Amazon Prime slide
  • 3. HIGH TECH SAAS CLOUD MEDIA DEVICES TELECOM EDUCATION HEALTH CARE FINANCIAL SERVICES CONSUMER
  • 4. Zuora Receives £36m For European Expansion It’s Spreading Around the Globe
  • 5. The Global 2000
  • 6. The Zuora Community is Ground Zero
  • 7. 20Billion Contracted Invoice Volume
  • 8. 1 New Product Created Every Hour On Average …
  • 9. The Face of Innovation
  • 10. 10X Growth 10,012,288 1,536,533 AUG 2012 AUG 2013
  • 11. Investing in Technology
  • 12. 25X 10X60X Faster Syncs Faster bill runs More capacity
  • 13. Customer Success Staff 2012 2013 Investing in Customer Success
  • 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. Why is All This Happening?
  • 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. Today, there is a Better Way To Build a Business
  • 18. Business Should Be Built on Win / Win Relationships
  • 19. Business Should Be Built on Stable Recurring Revenue
  • 20. Business Should Be Built on Efficient use of resources
  • 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. The Subscription Economy IsABetter Way of Doing Business
  • 23. Building Better Businesses
  • 24. We analyzed 6 years of data 1 million conversations with people building better businesses
  • 25. “What is the best way to price?”
  • 26. “How do I reduce churn?”
  • 27. “How should I compensate my sales force?”
  • 28. “How do I reduce the number of failed credit card transactions?”
  • 29. “Should I charge a setup or implementation fee?”
  • 30. “How do I account for multi-year contracts?”
  • 31. “As I expand internationally, what payment or tax issues will I encounter?”
  • 32. “Should I offer monthly or annual billing periods?”
  • 33. We analyzed 6 years of data A picture starts to emerge
  • 34. You are trying to PriceAcquireBillCollectNurtureAccountMeasureIterateScale
  • 35. You are trying to Price Acquire Bill Collect Nurture Account Measure Iterate Scale
  • 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. Introducing  the  9  Keys  to  Success  in  the  Subscrip=on  Economy    
  • 38. PRICE ACQUIRE BILL COLLECT NURTURE ACCOUNT MEASURE ITERATE SCALE
  • 39. Simple per-unit pricing Infinite pricing options
  • 40. 2220000000   ?   A new way to think about pricing
  • 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. TheAbility to Price in support of your business goals is the first Key for Success in the Subscription Economy
  • 43. Itsoundseasy
  • 44. Billing Gateways fulfillment provisioning Immediate or delayed payment Connect to CRM Notify Connect to accounting Self service vs assisted flows Butit’sHarderThanItSeems
  • 45. We live in a B2Any world B2C B2B
  • 46. The Ability to Quickly Acquire Customers in a B2Any World is the second Key for Success in the Subscription Economy  
  • 47. Billing used to be simple Ship Bill
  • 48. $10   new customers Existing customers Pro-rate Usage Ship Bill
  • 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. The Ability to Create Accurate, Clear Invoices at Scale is the third Key for Success in the Subscription Economy  
  • 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. The need to automate ACH
  • 53. Handling of Exceptions
  • 54. The Ability to Tame the Complexity of Payments is the fourth Key for Success in the Subscription Economy  
  • 55. Build Valuable Relationships
  • 56. The Secret: Give Customers Control of the Relationship
  • 57. Remember the 2nd Key: Acquire? Subscribe
  • 58. That Was Just the Beginning Subscribe Renew Suspend Add-on Upgrade
  • 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. The Ability to Nuture And Develop Deeper Customer Relationships is the fifth Key for Success in the Subscription Economy  
  • 61. “I’ve got this massive spreadsheet I use to track Revenue”
  • 62. “It’s Taking Longer and Longer to Close My Books”
  • 63. “It’s becoming harder to harder to reconcile financial info across all my different systems”
  • 64. “The IT department used to be known as Dr. No …. But now, it’s the finance department”
  • 65. There’s no accounting for subscriptions Booking Subscription Billing Cash Revenue
  • 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. 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. 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. Your current applications don’t give you the metrics you need
  • 70. The Ability to Instantly Access Subscription Economy Metrics is the seventh key for Success in the Subscription Economy  
  • 71. Pricing iteration is crucial to support growth
  • 72. You can’t afford this … “The next available engineer will see you in 6 months”
  • 73. The ability to Rapidly Iterate On Your Pricing and Acquisition Strategies is the eighth key for Success in the Subscription Economy  
  • 74. Why build all this into your service? Pricing Payments Taxation Billing Rev Rec Secure Mission Critical Scalable Rating
  • 75. When you could do this?
  • 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. The ability to Run on a Scalable, Reliable, Mission Critical Infrastructure is the ninth key for Success in the Subscription Economy
  • 78. Introducing  the  9  Keys  to  Success  in  the  Subscrip=on  Economy    
  • 79. These are the 9 Keys to Success in the Subscription Economy
  • 80. These are the 9 Keys to Building a Better Business
  • 81. Build a Business Live the 9 Keys Join the Revolution
  • 82. Join  the  RevoluJon   www.subscrip=onmanifesto.com     via  the  Subscribed  Mobile  App     via  Manifesto  signing  sta=ons     #subscripJonmanifesto  
  • 83. Thank you to our sponsors. #subscribed13
  • 84. Mobile App Customer  Lead  Sessions   Product  Vision  Keynote   Do not miss. #subscribed13 Cocktail  RecepJon   Zuora  Demo  Booth  
  • 85. Get your mobile app. Search your app store for “Subscribed” Download Accept push notifications for conference updates #subscribed13