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Recurring Revenue: Custom pricing models against standardized billing tools, Michal Mach

Recurring Revenue: Custom pricing models against standardized billing tools, Michal Mach

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Have you experienced issues with measuring recurring revenue in Salesforce? The goal of my story is to show reasons why small and medium-sized companies keen on a custom development for their own pricing models. Moreover, if companies continue to grow, they are looking for a standardized billing solution such as Salesforce Revenue Cloud (CPQ + Billing). The question is why?

First, I will introduce the topic by definitions of recurring revenue and this type of business. Then, I mention the specific reasons why some companies choose their own solutions in Salesforce and custom pricing.

Subsequently, I compare why this approach is not suitable in the long term and how the choice of a standardized billing tool (including Salesforce Revenue Cloud) helps the companies grow further.

Finally, I stick out key benefits of the Salesforce Revenue Cloud choice and when to use it appropriately.

Have you experienced issues with measuring recurring revenue in Salesforce? The goal of my story is to show reasons why small and medium-sized companies keen on a custom development for their own pricing models. Moreover, if companies continue to grow, they are looking for a standardized billing solution such as Salesforce Revenue Cloud (CPQ + Billing). The question is why?

First, I will introduce the topic by definitions of recurring revenue and this type of business. Then, I mention the specific reasons why some companies choose their own solutions in Salesforce and custom pricing.

Subsequently, I compare why this approach is not suitable in the long term and how the choice of a standardized billing tool (including Salesforce Revenue Cloud) helps the companies grow further.

Finally, I stick out key benefits of the Salesforce Revenue Cloud choice and when to use it appropriately.

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Recurring Revenue: Custom pricing models against standardized billing tools, Michal Mach

  1. 1. Recurring Revenue: Custom pricing models against standardized billing tools by Michal Mach
  2. 2. #CD22 • 5 years with Salesforce • Project deliveries • Architecture & design • Project estimates Michal Mach Salesforce Architect at Enehano
  3. 3. #CD22 ● Business intro – recurring revenue & subscriptions ● Common challenges ● Real experience ● Salesforce Revenue Cloud ● Summary Agenda
  4. 4. #CD22 Recurring Revenue
  5. 5. #CD22 Recurring Revenue 0 20 40 60 80 100 120 140 160 180 200 1 2 3 4 5 6 7 8 9 10 11 12 Recurring Revenue Model Cost Revenue Cummulative Revenue 0 20 40 60 80 100 120 140 160 180 200 1 Revenue Cost Revenue Source: author‘s example
  6. 6. #CD22 = product enablement & payment collection in cycles Subscription - product selection - pricing model - currency - length - cycle - start date - discount - templates - subscribed items - colletion - status Product Price Subscription Invoice(s) Payment
  7. 7. #CD22 … what is behind too Subscription … Payment Collection Templates Tax IDs Payment reminders Legal Tax rates Cancellations Usage model Special terms Subscription changes Refunds
  8. 8. #CD22 ● Complex discounting / too opened special terms Common challenges
  9. 9. #CD22 ● Implement custom parts of billing process in Salesforce without billing tool ● Review business processes before tool selection Common challenges Custom subscription object Apply custom pricing Build custom invoice gen. What if…
  10. 10. #CD22 Salesforce Revenue Cloud • Pricing configuration • Guided selling • Proposal documents • Extended UI + Advanced approvals • Subscriptions • Invoice schedules • Tax management • Invoice templates • Revenue schedules + Legal entities + Automated payments + Complex revenue reporting + Finance books
  11. 11. #CD22 ● Transform comlex pricing in Salesforce ● Create & manage Stripe subscriptions from Salesforce by custom integration Real experience 1 year / 4 team members 700 MDs
  12. 12. #CD22 There are many other challenges. For now, if somebody tells you… Summary „Salesforce is a platform so why not to build our own billing on it?“ No custom billing in Salesforce
  13. 13. Thank you! #CD22

Editor's Notes

  • I have chosen to present the topic today because the recurring revenue is becoming popular and it gains on its weight. But, there might be some challenges with regards to the sales, products, billing, finance & controlling
  • Quickly explain reccuring revenue (what it is and why it is popular and customers like it).
    Bridge to next slide: Lets také a look at what entities covers the process from customer side


    Next slide:
    - Let‘s take a look on how this recurring revenue is being generated and how the process looks like from the customer (sometimes even from the company) perspective.
  • Go through main entities in billing process. How they work and what is being defined on each entity – why we need those. Produkt a služba.

  • „How do you like this slide? No? Me neither.. It is a bit cloudy I would say…“

    It happens that only the „previous slide“ and it has the importance.

    Explain what all topics are also behind the billing area – not usually well known when starting project and will appear when finance & controlling will raise their requirements.


    Next Slide:
    Now, lets take a look at 2 main challenges that I have experienced.
  • Return back na ty hlavní pain points. Zmínit něco jako v jednoduchosti je síla – v rámci revize jde i k zeštíhlení. V rámci standardního řešení – vyčíst si hodnotu – zamyšlení se nad customizací.

    It is a building of custom billing in Salesforce, but you will never get there or it will cost you a lot of money.

    Next slide:
    - Now, I would like to show you 1 example that I have experienced and this is exactly how the billing project should not be even started.
  • Stojí to nad platformou Salesforce v rohu vpravo nahoře
  • I would like to show you now how the selection of incorrect approach can affect the project in Salesforce – this is a real example – EGYM (no mention but it will be presented – timeline / real expectations / tool

    Describe status and challenges – testing / many issues from testing, dependency on existing code, company not ready for such a project, not ready for go live…

    Talk about the details, what were the challenges / explanations to customer – suggestions of different variants…

    What to customize  integration, standard patterns
    What not tu customize  compelx transformations and trying to bend over the tools selected
  • Always do internal analysis
    Look how standard billing process works
    Find product that suits your needs
    Review & align your processes with the best suitable tool
    Do only necessary customization to achieve the solution to work

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