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Products
1970s
Product + Services
1990s
Customer Centric
2000s
Relationship Centric
Today
A SHIFT FROM PRODUCTS
TO RELATIO...
PRICING Unit Sales Value pricing
MARKETING Branding Experience
SALES Selling products Selling outcomes
FINANCE Unit margin...
Advent Software
Servcorp Ltd
ServiceChannel
Concur Technologies
Q2E Banking
Axial Inc.
Technology
IBM
Intuit Inc.
Zendesk
...
THE PROBLEM
Existing Systems Were Built For Products and One-time Transactions,
Not Subscribers and Long-term Relationship...
INTRODUCING ZUORA
A prospect-to-cash solution for relationship-centric enterprises
SUBSCRIBER
MANAGEMENT
Cross-sell, upsel...
SUBSCRIBER IDENTITY
Payment Gateways
Taxation
Mediation
Provisioning
COMMERCE BILLING FINANCE
RELATIONSHIP BUSINESS MANAGE...
Tailor pricing to subscriber
segments or individual subscribers
Combine one-time, recurring and
usage pricing models
Rapid...
2. Designed for multi-channel subscriber management
Native salesforce.com CPQ
application
Guided selling to streamline you...
3. Automates recurring billing and collections
Automated billing and personalized
invoice presentation/delivery
Automated ...
4. Designed to integrated with your finance application
Chart of account alignment between
Zuora and your financial system
R...
5. Delivering deep insights into business growth and service usage
Report on billings, bookings, AR
and revenue growth
Mea...
Zuora manages the downstream complexity
in billing and finance
Order #1
Initial
Order
Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice
•  Billing schedules divide orders into bas...
How Traditional Billing Systems Handle Subscriptions
Order #1
Initial
Order
Order #2
Upgrade to
“Gold” Plan
Mo. 1 Invoice ...
…Zuora simplifies process and customer relationships
•  Single subscription which records all changes (versions)
•  Automat...
FINANCE
Manage
Recurring Revenue
REVENUE RECOGNITION
RULES
AUTOMATIC REVENUE
DISTRIBUTION
MANUAL REVENUE
DISTRIBUTION
AUTO...
Monthly to Quarterly Example
01/01
Sales &
Sales Ops
Product
Mgmt
Finance
Bill & Pay
Operations
New Order on 01/01
12 Mont...
Adding Users Example
01/01
Sales &
Sales Ops
Product
Mgmt
Finance
Bill & Pay
Operations
New Order: 10 Users on 01/01
12 Mo...
Monthly to Annual Example
01/01
Sales &
Sales Ops
Product
Mgmt
Finance
Bill & Pay
Operations
New Order on 01/01
12 Month T...
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Zuora Presentation

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Zuora Presentation

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Zuora Presentation

  1. 1. Products 1970s Product + Services 1990s Customer Centric 2000s Relationship Centric Today A SHIFT FROM PRODUCTS TO RELATIONSHIPS
  2. 2. PRICING Unit Sales Value pricing MARKETING Branding Experience SALES Selling products Selling outcomes FINANCE Unit margins Customer lifetime value CULTURE Hit products Deep relationships THIS CHANGES EVERYTHING
  3. 3. Advent Software Servcorp Ltd ServiceChannel Concur Technologies Q2E Banking Axial Inc. Technology IBM Intuit Inc. Zendesk Autodesk SendGrid Mulesoft Okta Docusign Yahoo! Citrix Linkedin TripAdvisor Box Trulia Zillow Xactly Marketo PTC Telecom HP Cloud Dell Inc. Informatica CollabNet Symantec SAGE BlueJeans Qualcomm Rogers Spark NZ Sensis Ooyala Xplornet Fuzebox Blackberry Motorola Five9 Polycom Tata Sensis AT&T Eclipse SkyRiver DNS CUSTOMERS IN EVERY INDUSTRY Internet of Things B2C Ford Qualcomm Thermo Fischer EDF Vivint, Inc Polycom Schneider Elec. GM PubNub Neopost SA Google Nest NCR General Electric Lowe’s American Express AXA Intuit Deloitte Avalara Dorsey Wright Stansberry Touring Car Schweiz uKnow SnagAJob.com Surf Air News UK Headspace Local Corp. Memeo Inc. MLS Listings HP MagCloud Kaplan Givezooks! BetterCloud Box American Express Bandwidth.com Engie (GDF Suez SA) Telstra Media Education Healthcare Fairfax Media Primedia AllProperty Media Whitepages.com Yellow Media Inc YP.com Thomas Publishing Time Inc (UK) Ustream The Guardian HBO Nordics AT&T Adworks Reed Business Info News UK Dow J/News Corp Liberation IPC Media BitGravity Pearson Sally Ride Science Safari Netchemia Lynda.com Mindflash Kaplan Learning.com Focus-N-Fly Inc Hobsons Edmentum EMyth Transparent Healthcare Perfect Patients Voyant Health Sycle LifeTechnologies Availity Medrio Modernizing Medicine Illumina GoodMouth CareCloud Carena Financial Services
  4. 4. THE PROBLEM Existing Systems Were Built For Products and One-time Transactions, Not Subscribers and Long-term Relationships Multiple Systems | Manual Processes | Rigid Technology | Product-Centric A Product ? ? Quoting Fulfillment Ecommerce Revenue Recognition Financials ERP SCM Inventory Product Catalogue Collections Invoicing
  5. 5. INTRODUCING ZUORA A prospect-to-cash solution for relationship-centric enterprises SUBSCRIBER MANAGEMENT Cross-sell, upsell renewals, 360 sync, self service PRICING & PACKAGING Pricing, Bundling, Entitlements QUOTING Configuration, Guided-Selling, Rules Engine BILLING Rating, Invoicing, Taxation PAYMENTS Offline & Online Payments, Credits, Adjustments Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace. Platform REVENUE Revenue Recognition, Accounting Close, GL Integration REPORTING & ANALYTICS Report builder, Dashboards, Segmentation, Predictive
  6. 6. SUBSCRIBER IDENTITY Payment Gateways Taxation Mediation Provisioning COMMERCE BILLING FINANCE RELATIONSHIP BUSINESS MANAGEMENT Z-Business Ecosystem CRM Web APIs
  7. 7. Tailor pricing to subscriber segments or individual subscribers Combine one-time, recurring and usage pricing models Rapidly create and iterate on price promotions Easily manage multi-currency pricing Link pricing and feature entitlements to streamline billing and provisioning Rapidly launch and test new pricing 1.  A pricing catalog purpose built for choice and rapid iteration
  8. 8. 2. Designed for multi-channel subscriber management Native salesforce.com CPQ application Guided selling to streamline your assisted sales processes Subscriber self-service account management Visibility into key subscriber metrics across all channels Partner price lists and partner sales Acquire and manage customers on multiple channels
  9. 9. 3. Automates recurring billing and collections Automated billing and personalized invoice presentation/delivery Automated electronic payment processing Automated tax and currency rounding calculations Invoice consolidation for hierarchical account relationships Triggers for automated provisioning and deprovisioning Ability to trigger billing based on external events Scale and streamline back office operations
  10. 10. 4. Designed to integrated with your finance application Chart of account alignment between Zuora and your financial system Roll up of financial transactions using multiple segmentation rules Automatic deferred revenue calculations Trial balance calculations for billings, cash and revenue Accounting lock-down to maintain auditability and compliance Scale and streamline back office operations
  11. 11. 5. Delivering deep insights into business growth and service usage Report on billings, bookings, AR and revenue growth Measure MRR, ARR, ACV and churn across product lines, geos, etc Easily access trends and patterns of use across your product An analytics-driven approach to identify cross-sell/upsell candidates for new products Measure usage and adoption
  12. 12. Zuora manages the downstream complexity in billing and finance
  13. 13. Order #1 Initial Order Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice •  Billing schedules divide orders into basic monthly or annual payments •  CRM and quoting tools don’t handle all types of quoting events: upsell, downgrade, add-ons, renewals, cancellations •  Subscription changes complicate system integrations even more Traditional Systems Handle Basic Invoices…
  14. 14. How Traditional Billing Systems Handle Subscriptions Order #1 Initial Order Order #2 Upgrade to “Gold” Plan Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Order #3 Add Another Service Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice •  Most billing & ERP system are order-centric model •  No concept of a holistic subscription, only billing schedules •  Subscription events: upsell, downgrade, add-ons, renewals, cancellations produce many unrelated orders and misaligned invoices •  No visibility into total customer lifecycle over time Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice
  15. 15. …Zuora simplifies process and customer relationships •  Single subscription which records all changes (versions) •  Automatic proration, charge alignment and co-terminus for easy renewals •  Simple invoices for the customer Subscription Subscription Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice Add Another Service (v3) Upgrade to “Gold” Plan (v2)
  16. 16. FINANCE Manage Recurring Revenue REVENUE RECOGNITION RULES AUTOMATIC REVENUE DISTRIBUTION MANUAL REVENUE DISTRIBUTION AUTOMATIC ADJUSTMENT REDISTRIBUTION REVENUE WORKBENCH REVENUE REPORTS Subscription-aware Data Model Align with Financial Systems ACCOUNTING SYSTEM INTEGRTION ACCOUNTING PERIODS CHART OF ACCOUNTS ACCOUNTING CLOSE REPORTS AR & REVENUE JOURNAL ENTRIES AUDIT TRAIL & ACCOUNTING LOCKDOWN
  17. 17. Monthly to Quarterly Example 01/01 Sales & Sales Ops Product Mgmt Finance Bill & Pay Operations New Order on 01/01 12 Month Term ends 12/31 Bronze Monthly Plan: $200/month Bill: $200 Bill: $200 Bill: $200 Bill: $200 Bill: $200 ER: $200 DR: $0 ER: $400 DR: $0 ER: $600 DR: $0 ER: $800 DR: $0 ER: $1000 DR: $0 Amendment on 06/15 Coterminous ends 12/31 Bronze Quarterly Plan: $300/quarter Bill: $250 ($300 - $100 Prorated Credit + $50 Prorated Charge) ER: $1250 DR: $200 ER: $1350 DR: $100 ER: $1450 DR: $0 ER: $1550 DR: $200 ER: $1650 DR: $100 02/01 03/01 04/01 05/01 06/01 06/15 07/01 08/01 09/01 10/01 11/01 12/01 ER: $1750 DR: $0 01/01 Renewal 12 Months Bronze Quarterly Plan Bill: $300 ER: $100 DR: $200 ER: $1150 DR: $0 Bill: $300 Bill: $200
  18. 18. Adding Users Example 01/01 Sales & Sales Ops Product Mgmt Finance Bill & Pay Operations New Order: 10 Users on 01/01 12 Month Term ends 12/31 Professional Plan: $120/user/year Bill: $1200 ER: $100 DR: $1100 ER: $200 DR: $1000 ER: $300 DR: $900 ER: $400 DR: $800 ER: $500 DR: $700 Amendment: 20 Users on 06/15 Coterminous ends 12/31 Professional Plan: $/user/year Bill: $650 ($1300 Prorated Charge - $650 Prorated Credit) ER: $850 DR: $1000 ER: $1050 DR: $800 ER: $1250 DR: $600 ER: $1450 DR: $400 ER: $1650 DR: $200 02/01 03/01 04/01 05/01 06/01 06/15 07/01 08/01 09/01 10/01 11/01 12/01 ER: $1850 DR: $0 01/01 Renewal 12 Months Gold Annual Plan Bill: $2400 ER: $200 DR: $2200 ER: $650 DR: $1200
  19. 19. Monthly to Annual Example 01/01 Sales & Sales Ops Product Mgmt Finance Bill & Pay Operations New Order on 01/01 12 Month Term ends 12/31 Bronze Monthly Plan: $200/month Bill & Collect $200 Bill & Collect $200 Bill & Collect $200 Bill & Collect $200 Bill & Collect $200 ER: $200 DR: $0 ER: $400 DR: $0 ER: $600 DR: $0 ER: $800 DR: $0 ER: $1000 DR: $0 Amendment on 06/15 Coterminous ends 12/31 Bronze Annual Plan: $1200/year Bill & Collect: $550 ($650 Prorated - $100 Credit) ER: $1250 DR: $500 ER: $1350 DR: $400 ER: $1450 DR: $300 ER: $1550 DR: $200 ER: $1650 DR: $100 02/01 03/01 04/01 05/01 06/01 06/15 07/01 08/01 09/01 10/01 11/01 12/01 Bill & Collect $200 ER: $1750 DR: $0 01/01 Renewal 12 Months Bronze Annual Plan Bill & Collect: $1200 ER: $100 DR: $1100 ER: $1150 DR: $600

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