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Sydney Subscribed 2016: Keynote

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Zuora CMO, David Gee, kicks off Subscribed 2016 in Sydney with a powerful keynote addressing the global impact the Subscription Economy is making on businesses, consumers, and technology. He shares the stage with Michael Addison, Group Manager at Energy Australia, and Danny Gravell, CIO at Sensis.

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Sydney Subscribed 2016: Keynote

  1. 1. WELCOME TO SUBSCRIBED SYDNEY
  2. 2. David Gee Chief Marketing Officer, Zuora
  3. 3. WE NOW LIVE IN A SUBSCRIPTION ECONOMY #shifthappens
  4. 4. YOU SEE IT IN THE HEADLINES
  5. 5. Unilever Buys Dollar Shave Club European giant to pay $1 billion for startup in challenge to P&G
  6. 6. A GLOBAL PHENOMENON 80% Of customers are demanding new consumption models – The Economist 2014 50% Of people in France are moving away from traditional ownership - Institut Français D’opinion Publique (IFOP) 80% Of German companies have dealt with the issue of subscription business models. - IDG Research Services $420B Spent on subscriptions in the US in 2015; up from $215B in 2000. - Credit Suisse
  7. 7. THE BEST COMPANIES HAVE REINVENTED THEMSELVES—AWAY FROM PRODUCTS #nogutsnoglory
  8. 8. IN THE LAST 15 YEARS, 52% OF THE FORTUNE 500 COMPANIES HAVE DISAPPEARED Average life expectancy 15 years 20151955 Average life expectancy 75 years vs.
  9. 9. Who survived the mass extinction?
  10. 10. GENERAL ELECTRIC From light bulbs to digital services “The digital company. That is also an industrial company”
  11. 11. IBM From punch card tabulators to cognitive data services Bob Dylan + IBM Watson
  12. 12. AMAZON, GOOGLE, APPLE, FACEBOOK, SALESFORCE The relationship-makers
  13. 13. UBER, NETFLIX, BOX, AIRBNB The new disruptors
  14. 14. WHAT IS THE COMMON THREAD?
  15. 15. OUTCOMES Not Ownership CUSTOMIZATION Not Generalization CONSTANT IMPROVEMENT Not Planned Obsolescence THE WAY PEOPLE BUY HAS CHANGED FOR GOOD We have new expectations
  16. 16. WE WANT THE SUBSCRIPTION EXPERIENCE Ongoing Value On-demand Fulfillment Personalized Service Anywhere, Real-time Memorable Experiences
  17. 17. A NEW ERA WITH A NEW IMPERATIVE Turn Customers Into Subscribers #allaboutrelationships
  18. 18. A NEW WAY OF THINKING customer product channels vs. service channels experience subscriber
  19. 19. Product Growth Finance ROLES ARE TRANSFORMING IT Leadership
  20. 20. THE NEW VP PRODUCT From one-time products to continuous innovation #alwaysinbeta
  21. 21. More than food
  22. 22. SUBSCRIBER IDENTITY Demographic data Behavioral data Financial data #dataisgold Name Email Twitter TRADITIONAL RECORD Phone Company Facebook SUBSCRIBER IDENTITY RECORD Purchases Products Local Pricing Promotions Adjustments Customer Moments Usage metrics Add-Ons Payment history Refund history Lifetime Value Renewal Value Aging balance New world: Old world:
  23. 23. • Know your subscribers • Innovate constantly • Deliver experiences The New Product Imperative
  24. 24. Mike Addison Group Manager, The Embedded Networks Company
  25. 25. A Changing Landscape Social change driving shift in housing demands • Urban Living • Aging population Technology disrupting energy industry • Energy efficiency • Solar & Storage • Electric vehicles • Digital meters & data Regulatory changes challenging the norm
  26. 26. The Embedded Networks Company • Working with developers, builders and property managers to deliver energy services to the customers in multi-tenanted buildings • Evolving Business Model disrupts the status quo • Customers “subscribe” to a range of energy products & services that we manage • Approach: Launch => Learn => Evolve
  27. 27. Why Zuora? • SaaS based platform – rapid delivery, digital customer experience, agile scaling – cost effective (ROI & TCO) • “Best in Class” subscription principles and processes • Feature rich capabilities and strong roadmap (i.e.: reporting engine) • Alignment to compliance needs (e.g.: ISO 2700x, PCI-DSS & Australian Privacy Policy
  28. 28. THE NEW VP GROWTH From selling things to monetizing outcomes #morevalue
  29. 29. GROW RELATIONSHIPS NOT TRANSACTIONS Growth in the old world 1. Selling more units 2. Lowering per-unit cost 3. Increasing prices Growth in the new world 1. Acquiring more customers 2. Lowering churn 3. Increasing value per customer
  30. 30. 1. Acquire customers for a new service 2. Expand into a new geography 3. Move into a new segment 4. Launch new pricing model 5. Cross-sell or upsell new offerings 6. Reduce churn 7. Grow your sales team 8. Acquire or spin-off business 8 STRATEGIES FOR GROWTH
  31. 31. PRICING & PACKAGING IS YOUR STRATEGIC WEAPON #getgrowing
  32. 32. • Build relationships • Tie pricing to value • Monetize anything The New Growth Imperative
  33. 33. THE NEW CFO From cost-accountant to business-model architect #financeissexy
  34. 34. Old World: COGS R&D G&A Sales & Marketing New World: CAC LTV ARR ARPU
  35. 35. A NEW INCOME STATEMENT Recurring Revenue Churn Recurring Profit Margin Growth Efficiency Annual Recurring Revenue $100 Churn (10) Net ARR 90 COGS (20) G&A (10) R&D (20) Recurring Profit 40 Recurring Profit Margin 40% S&M (40) New ARR 40 Ending ARR $130
  36. 36. • Own the model • Guide the business • Customer-centric metrics The New Finance Imperative
  37. 37. THE NEW CIO From rigid standards to enabling agility #ERPisdead
  38. 38. “FROM SYSTEMS OF RECORD TO SYSTEMS OF INNOVATION” - Gartner
  39. 39. • Deliver agility • Unlock innovation— flexibility, speed The New IT Imperative
  40. 40. Danny Gravell Chief Information Officer, Sensis
  41. 41. Sensis #1 Marketing Services Company in Australia
  42. 42. Before
  43. 43. After
  44. 44. THE NEW CEO Break down the silos, build a subscription culture #oneteamonedream
  45. 45. Marketin g Product Sales Finance IT Ops A product THIS IS HOW YOU OPERATE TODAY ? ?
  46. 46. Mktg FinanceSales IT Product Ops THE NEW RULE FOR CULTURE Wrap your org around your subscribers
  47. 47. Product Growth Finance THE PROBLEM STATEMENTS IT Leadership Fragmented view of subscribers Systems can’t support your pricing and packaging Outdated view of your business Disparate systems with rigid architectures No single view of your subscription business
  48. 48. THAT’S WHY WE BUILT ZUORA A unified platform for the subscription economy Platform Integration Scalability Reliability Security Compliance Extensibility Pricing & Packaging Billing AnalyticsPayments Revenue Subscriber Manageme nt Quoting Pricing Bundling Entitlements Rating Taxation Billing Collections Dashboards Sub. Identity, Report Builder Segmentation Triggers Credits Adjustments Online Payments Offline Payments GL Integration Revenue Recognition Accounting Close Roll-Up Cross-sells Upsells Renewals 360 Sync Configuration Guided Selling Rules Engine
  49. 49. BUILD YOUR ENTIRE BUSINESS UNDER ONE ROOF AND AROUND YOUR SUBSCRIBERS
  50. 50. WHAT DOES IT LOOK LIKE WHEN YOU’RE DOING IT RIGHT? #subscriptionbliss
  51. 51. THE FUTURE IS BRIGHT Transformation is the opportunity
  52. 52. WE HAVE RESOURCES TO HELP www.zuora.com/academy
  53. 53. TURN YOUR CUSTOMERS INTO SUBSCRIBERS
  54. 54. The End.

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