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From Incubation To Reality (Accelerate East)

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Business Model Innovation Within An Enterprise

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From Incubation To Reality (Accelerate East)

  1. 1. From  Incuba,on  To  Reality   Business  Model  Innova/on  Within  An  Enterprise   Mary  Ransom   SVP,  Consumer  Products   Borderfree   1 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  2. 2. Agenda   1.  Borderfree  Introduc/on   2.  Building  &  Launching  BoxHop   3.  What  Comes  Next   4.  QA   2 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  3. 3. Introduc,on  to  Borderfree   Who  we  are  &  What  we  do   •  Privately  held;  190  employees  in  NYC  (HQ),  Tel  Aviv  (R&D),  Toronto,   Shanghai   •  Our  soIware  and  services  plaKorm  extends  retailers’  online  capabiliOes   globally   •  Sell  to100+  countries  and  transact  in  60+  currencies   •  International Checkout •  Fraud/Risk Management •  Customer Care Support Marketing •  Marketing Strategies •  Partnership Sourcing •  Global Marketplaces •  Carrier Management •  Export Compliance •  Omni-channel Support 3 Commerce Logistics Insights •  Consumer Insights •  Merchandising Strategies •  Global Shopping Trends Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  4. 4. Introduc,on  to  Borderfree   Our  Customers:  Retailers  &  Shoppers   4 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  5. 5. Evolving  from  B2B  to  B2C   The  Business  Case  for  BoxHop   CUSTOMER  FEEDBACK   •  •  •  Shipping  Costs  too  Much!   Want  to  order  from  U.S.  sites   Want  to  place  orders  from  non-­‐ Borderfree  merchants   RESULT:  BOXHOP  IS  BORN   Provide  internaOonal  consumers   with  a  US  shipping  address  to  buy   directly  from  US  retailers   BUSINESS  IMPLICATION   •  •  •  5 Need  to  lower  our  cost  basis   Need  a  new  B2C  revenue  model   Need  a  new  plaKorm  to  support   new  business  &  expand  TAM   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  6. 6. The  9  Keys  To  Subscrip,on  Success   How  They  Shaped  BoxHop   $ PRICE NURTURE 6 ACQUIRE ACCOUNT BILL MEASURE COLLECT ITERATE Zuora confidential, shared under non-disclosure and subject to disclaimer notice SCALE
  7. 7. $ Pricing  &  Packaging   New  Services  &  Revenue  Streams   REVENUE  &  RISK  DIVERSIFICATION   •  •  7 Borderfree  Profit  Streams:   •  Merchant  Service  Fees   •  Consumer  FX  Fees   BoxHop  Profit  Streams:   •  Subscrip/on  Fees   •  Shipping  Fees   •  Usage  based   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  8. 8. Customer  Acquisi,on   Partnerships  &  Promos   Partnerships  drive  value  for  all:   •  Merchant:  sales  &  loyalty   •  Consumer:  valuable  discount   •  BoxHop:  ‘FREE’  subscribers!   •  Borderfree:  Consumer  Profiles   8 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  9. 9. Recurring  Billing   Storing  &  Accessing  Consumer  Profiles     •  •  •  •  •  •  9 100%  TransacOonal   No  SubscripOon  Fees   No  Consumer  or  Payment   Profiles       SubscripOon  &  TransacOonal   Upgrades,  add-­‐ons,  renewals   All  Users  have  Payment  Profiles   Future = Hybrid •  Borderfree  Consumer   Profiles     •  BoxHop  as  a  Shipping   OpOon   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  10. 10. Consumer  Collec,ons   The  ‘Cash’  in  Cash  Flow   Preven/ng  Failed  Payments   •  •  •  Account  creaOon  requires  a  valid  CC   Email  30  days  before  card  expires   Payments  updated  in  customer  portal   Managing  Failed  Payments   •  •  •  •  10 AutomaOc  retry  logic  configured   Email(s)  triggered  to  consumers   Parcels  held  pending  payment   Late  penalty  fees  assessed   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  11. 11. Rela,onship  Management   Visibility  &  Self-­‐Service   •    •  •  11 Zuora  +  Salesforce  =  full  customer   account  visibility  and  easy   administraOon  for  customer  care   Customer  portal  allows  easy  profile,   payment  &  subscripOon  updates   •  Payment  details  hosted  by   Zuora   •  FAQs  &  web-­‐to-­‐case  support   powered  by  Force.com   OperaOonal  issues  trigger  case   creaOon  &  email  communicaOons   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  12. 12. Finance  &  Accoun,ng   Keeping  the  Bean  –  Counters  Calm   BUSINESS  GOAL:   SaOsfy  Finance  without   hindering  innovaOon,  ceding   control  or  delaying  launch   PROJECT  REQUIREMENTS:   •  Manage  Revenue  RecogniOon   •  Refunds  Administered  in   Salesforce   •  Easy  CyberSource  IntegraOon   •  Connects  to  our  Intacct  GL   •  Financial  Controls  SaOsfy   Auditors   •  PCI  Level  1  Compliance   •  MulO-­‐Currency  Pricing  (P2)   •  Supports  MulOple  Gateways   (P2)   12 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  13. 13. Measure  &  Analyze   Consumers,  OperaOons,  Trends…   •  •  •  •  •  13 Subscribers           GROWTH   USAGE   SPEND   CHURN   RENEWAL   •  •  •  •  •  Opera/ons           BILLINGS   COLLECTIONS   PRODUCTIVITY   ERROR  RATES   OPEN  CASES   Basket  A[ributes           •  MERCHANTS   •  PRODUCTS     •  BRANDS   •  DIMENSIONS   •  WEIGHT   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  14. 14. Systems  &  Scale   SoluOon  Approach  –  Key  Drivers   •  •  Outsource  Ini/al  Build  –  partnered  with  Slalom  ConsulOng  to   architect  &  build  the  MMP   •  Enterprise-­‐level  Compliance  –  PCI,  accounOng/audit,   customer  screening,  import/export  restricOons     •  Nimble  but  Scalable  &  Configurable  Pla^orm   •  14 Speed  to  Market  –  launch  and  stabilize  before  holiday  season   Low  Organiza/onal  Burden  –  ability  to  migrate  and  manage   the  plaKorm  in-­‐house  with  limited  dedicated  labor  post-­‐ launch   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  15. 15. Systems  &  Scale  (cont’d)   Primary  SoluOon  Components   •  •  Hosted  checkout;  subscripOon  billing  &  collecOons;  A/ R  sub  ledger   •  Development  plaKorm  supporOng  the  Customer   portal   •  15 Core  plaKorm  and  data  repository  for  customer  and   parcel  management,  order  workflow  &  customer  care   Duty  and  tax  calculaOon;  import/export  restricOons   management;  shipping  carrier  rates  and  rules   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  16. 16. Systems  &  Scale  (cont’d)   Business  Process  Flow   Customer   Registers  &   Orders  Goods   Order   Processed  &   Shipped   Business   Flows   Parcels   Received  &   Stored   Customer   Configures   Order   16 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  17. 17. Future  Enhancements   What  Comes  Next   CUSTOMER  EXPERIENCE   •  •  •  •  •  17 Loyalty  program   Translated  interfaces   Mobile  checkout  &   tracking   DDP  shipping  opOon   InternaOonal  returns   support   MARKETING  &  GROWTH   •  •  •  •  Consolidated   merchant  reporOng   IntegraOon  into  the   Borderfree  checkout   AddiOonal  payment   gateways   FX  support   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  18. 18. Q&A   Thank  You!   18 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

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