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Subscribed 2013 Sydney Keynote
Subscribed 2013 Sydney Keynote
Subscribed 2013 Sydney Keynote
Subscribed 2013 Sydney Keynote
Subscribed 2013 Sydney Keynote
Subscribed 2013 Sydney Keynote
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Subscribed 2013 Sydney Keynote

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Zuora CEO Tien Tzuo opening keynote from Subscribed Sydney. The Subscription Economy Global Conference.

Zuora CEO Tien Tzuo opening keynote from Subscribed Sydney. The Subscription Economy Global Conference.

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  • 1. The World is Moving to a Subscription Economy BUY NOW 2001! 2011   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
  • 2. Amazon Prime slide
  • 3. #Subscribed13  tweets  will  receive   50%  off  first  shipment  
  • 4. The Zuora Community is Ground Zero
  • 5. The Face of Innovation
  • 6. TELECOM MEDIA HIGH TECH EDUCATION CLOUD SAAS HEALTH CARE CONSUMER BUSINESS SERVICES DEVICES
  • 7. The Global 2000
  • 8. 20 Billion Contracted Invoice Volume
  • 9. On Average … 1 New Product Created Every Hour
  • 10. 10X Growth AUG 2012 AUG 2013 1,536,533 10,012,288
  • 11. Investing in Technology
  • 12. 60X 25X 10X Faster Syncs Faster bill runs More capacity
  • 13. Investing in Customer Success Customer Success Staff 2012 2013
  • 14. 100 100 90 93 91 95 98 94 96 97 97 "Prompt  response  even  though  was   delegated  non  urgent" 75 Lauren  Wood, 50 "Amazing  as  usual.   Thanks  Rossi.”   "The  response  was  quick     and  detailed." 25 Juan  Delard  de  R. Jalal  Radwan, 0 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
  • 15. We analyzed 6 years of data 1 million conversations with subscription economy leaders
  • 16. “What is the best way to price?”
  • 17. “How do I reduce churn?”
  • 18. “How should I compensate my sales force?”
  • 19. “How do I reduce the number of failed credit card transactions?”
  • 20. “Should I charge a setup or implementation fee?”
  • 21. “How do I account for multi-year contracts?”
  • 22. “As I expand internationally, what payment or tax issues will I encounter?”
  • 23. “Should I offer monthly or annual billing periods?”
  • 24. We analyzed 6 years of data A picture starts to emerge
  • 25. You are trying to Price Acquire Bill Collect Nurture Account Measure Iterate Scale
  • 26. Importance of each of the 9 things 100%   90%   80%   70%   60%   50%   40%   30%   20%   10%   0%   1   2   3   4   5   6   7   8   9  
  • 27. Support Cases Categorized By 9 Things Iterate 11% Scale 9% Price 11% Acquire 12% Measure 9% Bill 14% Account 11% Nurture 11% Collect 12%
  • 28. Introducing  the  9  Keys  to  Success  in  the  SubscripNon  Economy    
  • 29. SCALE MEASUR E NURTUR E BILL PRICE ACQUIRE COLLEC T ACCOUN T ITERATE
  • 30. Simple per-unit pricing Infinite pricing options
  • 31. A new way to think about pricing ?   2220000000  
  • 32. Increase Cash Flow Increase Loyalty and Retention Outflank the competition Grab Market Share Pivot into a new segment Expand Internationally Drive Down Cost of Sales
  • 33. The Ability to Price in support of your business goals is the first Key for Success in the Subscription Economy
  • 34. It sounds easy
  • 35. But it’s Harder Than It Seems Gateways Connect to CRM Billing Notify Immediate or delayed payment provisioning fulfillment Self service vs assisted flows Connect to accounting
  • 36. We live in a B2Any world B2C B2B
  • 37. NCR  Silver   Bill  Plummer   launched new service automated commerce, billing and finance in just 2 months
  • 38. The Ability to Quickly Acquire Customers in a B2Any World is the second Key for Success in the Subscription Economy  
  • 39. Billing used to be simple Ship Bill
  • 40. $10   new customers Ship Existing customers Bill Pro-rate Usage
  • 41. Every bill is an interaction with your customer 1   Confused  customers   2   Weeks  to  generate  bills   3   Billing  Errors   4   Lost  Revenue   “But  I  signed  up  for  the   $100/month  plan”  
  • 42. Firehost   Katrena  Drake   hands-off invoicing for thousands of clients with complex usage billing models in multiple countries  
  • 43. The Ability to Create Accurate, Clear Invoices at Scale is the third Key for Success in the Subscription Economy  
  • 44. Electronic payments Credit Cards Debit Cards Non-electronic payments Wire transfers Manual Lockbox Multiple card types Catch exceptions Retries Card updaters Notify delinquents Suspend service Write off payment Country specific banking rules Receive payment Reconcile
  • 45. The need to automate DIRECT DEBIT
  • 46. Handling of Exceptions
  • 47. Xplornet   Xplornet processes hundreds of thousands of payments in hours Across multiple payment methods And manages payment exceptions and retries automatically
  • 48. The Ability to Tame the Complexity of Payments is the fourth Key for Success in the Subscription Economy  
  • 49. Build Valuable Relationships
  • 50. The Secret: Give Customers Control of the Relationship
  • 51. Remember the nd Key: 2 Acquire? Subscribe
  • 52. Subscribe Renew That Was Just the Beginning Suspend Add-on Upgrade
  • 53. WEBSITE   CRM   BILLING   Validate  CC   PLATFORM   Confirm  Sign   Up   Sign  up   Validated   Create   Account   Create   SubscripNon   Create  Bill   Welcome   Email   Link  Account   Provision   Service   Process   Payment  
  • 54. News   InternaKonal   Implemented “Holiday Stops” in a matter of weeks allowing hundreds of thousands of subscribers to suspend service online or via call center
  • 55. The Ability to Nuture And Develop Deeper Customer Relationships is the fifth Key for Success in the Subscription Economy  
  • 56. “I’ve got this massive spreadsheet I use to track Revenue”
  • 57. “It’s Taking Longer and Longer to Close My Books”
  • 58. “It’s becoming harder to harder to reconcile financial info across all my different systems”
  • 59. “The IT department used to be known as Dr. No …. But now, it’s the finance department”
  • 60. There’s no accounting for subscriptions Booking Subscription Billing Cash Revenue
  • 61. Dyn   Gray  Chynoweth   Our monthly close is 3 days shorter I get 3 days better intelligence and 3 days better business operations every single month
  • 62. The Ability to Easily and Quickly Account for Bookings, Billings, Cash and Revenue is the sixth Key for Success in the Subscription Economy  
  • 63. You used to track these metrics Revenue  $100        COGS              (30)   Gross  Profit  70     OperaNng  Expenses   S&M  (20)   G&A  (10)   R&D                    (20)   Total  Op  Ex  (50)       Net  Income  $20  
  • 64. 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     Retention Rate Recurring Profit Margin Growth Efficiency Index
  • 65. Your current applications don’t give you the metrics you need
  • 66. SendGrid   Jim  Franklin   When the board calls we‘re able to give them actuals from prior months And visibility into future revenues
  • 67. The Ability to Instantly Access Subscription Economy Metrics is the seventh key for Success in the Subscription Economy  
  • 68. Pricing iteration is crucial to support growth
  • 69. You can’t afford this … “The next available engineer will see you in 6 months”
  • 70. The ability to Rapidly Iterate On Your Pricing and Acquisition Strategies is the eighth key for Success in the Subscription Economy  
  • 71. Why build all this into your service? Secure Billing Rating Pricing Taxation Payments Rev Rec Mission Critical Scalable
  • 72. When you could do this?
  • 73. Integrate with an ecosystem that supports your service Website   Customer   support   orders   invoices   Commerce   quoKng   checks   Provisioning   events   Inventory   account   status   Fulfillment   account   balance   metrics   EnKtlements   Billing   Payments   Finance     GL  
  • 74. The ability to Run on a Scalable, Reliable, Mission Critical Infrastructure is the ninth key for Success in the Subscription Economy
  • 75. Introducing  the  9  Keys  to  Success  in  the  SubscripNon  Economy    
  • 76. These are the 9 Keys to Success in the Subscription Economy
  • 77. The 9 Keys Require Different Systems
  • 78. The 9 Keys Require a Different Approach to COMMERCE
  • 79. Change  to  Tesco  instead  of  Target  
  • 80. •  Amazon cart
  • 81. PROBLEM : •  Don’t support consumptionbased pricing models •  Can’t Deal with Time •  Can’t nurture subscriber relationships •  Are not multi-channel
  • 82. Shopping Cart Commerce Relationship Commerce
  • 83. ü Overage ü Flat Fee ü Smoothing ü Per Unit ü Rollover ü Volume ü Uplifts ü Prepay ü Tiered Overage ü Tiered ü 2 Years Features  blurb   ü Annual ü 5 Years ü Monthly ü 18 Months ü Quarterly ü Specific Months ü Free Trials ü Semi-Annual ü Discounts ü Promotions Pricing Engine For Infinite Levels Of Monetization
  • 84. ü Subscribe Orders ü Upgrade Orders ü Downgrade Orders Features  blurb   ü Renewal Orders ü Cancellation Orders ü Add-On Orders Lifecycle Orders To Manage Changing Levels Of Relationships
  • 85. ü Subscription Quotes ü 360 Sync Features  blurb   ü ZDK ü REST APIs ü Ruby and Java Toolkits Multi Channel Platform Enabling Commerce Anywhere, Anytime
  • 86. ü Quote Wizard ü Reusable Page Components ü Product Selector Features  blurb   ü Account Selector ü List Components ü Discount Configuration Configurability Enabling Rapid Deployments Of Tailored Experiences
  • 87. Powers Relationship Commerce Pricing Engine Lifecycle Orders Multi-Channel Platform Configurability
  • 88. The 9 Keys Require a Different Approach to BILLING
  • 89. Invoicing vs Billing
  • 90. •  Create clear, accurate invoices •  Scale from 1 to 10 million invoices •  Tame the complexity of payments and collections •  Support any payment method
  • 91. Billing Automation Invoice Presentment Payment Automation On demand or batch rating Template Configuration Breadth of gateways Trigger Based Billing Template Library Exception Management Notifications and Alerts Invoice Delivery Adjustments & Write-Offs
  • 92. The 9 Keys Require a Different Approach to FINANCE
  • 93. 1494 A.D.   Luca Bartolomeo Pacioli   inventor of Double Entry Bookkeeping
  • 94. Can’t handle subscription changes Can’t spread revenue over time Can’t differentiate between one time and recurring amounts
  • 95. PROBLEM : •  Don’t differentiate between onetime and recurring amounts •  Can’t spread revenue over time •  Don’t know what to do when subscriptions change
  • 96. Double Entry Bookkeeping Subscription Finance
  • 97. ✔ ✔ ✔ ✔ ✔ Define  rules  to  manage  complex   revenue  recogniKon  policies     Tag  charges  with  revenue  revenue   and  deferred  revenue  GL  accounts     Tag  charges  with  with  revenue   recogniKon  rules     Control  revenue  recogniKon  trigger   dates     View  earned  and  deferred  revenue   reports   Accounting Close Tools Tools to accelerate your month-end close
  • 98. ✔ ✔ ✔ ✔ ✔ Define  rules  to  manage  complex   revenue  recogniKon  policies     Tag  charges  with  revenue  revenue   and  deferred  revenue  GL  accounts     Tag  charges  with  with  revenue   recogniKon  rules     Control  revenue  recogniKon  trigger   dates     View  earned  and  deferred  revenue   reports   Revenue Recognition Tools That handle complex revenue rules
  • 99. ✔ ✔ ✔ Create  or  import  your  chart  of   accounts       Tag  charges  with  GL  account   codes       Tag  transacKons  such  as   payments,  credits,  refunds,   adjustments  etc  with  GL  account   codes     Chart of Accounts to track charges through the revenue lifecycle
  • 100. ✔ ✔ Generate  debit  and  credit     journal  entries  to  simplify  your   general  ledger  updates       Align  journal  entries  with  GL   accounts   Easy Accounting Integration to unburden your IT team
  • 101. ✔ Reuse  the  audit   peace  of  mind   screen  shot  from   the  website   ✔ ✔ Create  custom  user  roles       Associate  roles  with  granular   user  permissions       Control  visibility  and  user   acKons  on  sensiKve  financial   data   Tight Security Controls For audit peace of mind
  • 102. Full Subscription Subledger Accounting Periods Revenue Rules Engine Chart of Accounts Journal Entries Trial Balances Auditability Journal Entries
  • 103. A subscription subledger for your general ledger General  Ledger  
  • 104. The 9 Keys Require Commerce, Billing and Finance to work together
  • 105. Traditional Business Commerce Billing Finance Book Order & Ship It Invoice & Collect For It Recognize It
  • 106. Subscription Business Order Invoice
  • 107. Subscription Business Invoice Order
  • 108. Subscription Business Invoice Revenue
  • 109. Subscription Business Orders Invoices Revenue
  • 110. Subscription Business
  • 111. Subscription Business
  • 112. Introducing The first relationship business management system
  • 113. Demo
  • 114. The first relationship business management system

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