The Operations Perspective: Scaling Operations in the Subscription Economy

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Learn best practices for end-to-end subscription based Quote-to-Cash and how to optimize both your front-end sales and back-end operational processes like billing, invoicing and payments.

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The Operations Perspective: Scaling Operations in the Subscription Economy

  1. 1. Scaling Sales & Billing Operations In the Subscription Economy Guillaume Vives SVP, Products, Zuora
  2. 2. In The Subscription Economy, Focus Is On Relationships Product Relationships BUY NOW SUBSCRIBE
  3. 3. Quo$ng   Ordering   Fulfillment/ Shipping   Invoicing   Payment/ Collec$on   Accoun$ng   The Quote to Cash Process in the Subscription Economy Traditional one-time charge economy What is different with the Subscription Economy? Quote Order Subscription Revenue event Revenue event Revenue event Invoice Payment Invoice Payment Invoice Payment Revenue RecognitionUpsell Upsell Upsell Order Order Order Provisioning
  4. 4. Quote to Cash to Accounting in the Subscription Economy Quote Order Subscription Revenue event Revenue event Revenue event Invoice Payment Invoice Payment Invoice Payment Revenue RecognitionUpsell Upsell Upsell Order Order Order Provisioning Sales Ops (aka Front End) Billing Ops & Revenue Ops (aka Back End)
  5. 5. Two Sides of the Same Coin •  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells •  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition Subscription Sales Operations Billing & Revenue Operations
  6. 6. Two Sides of the Same Coin •  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells Sales Operations
  7. 7. Sales Operations: The Fundamental Changes Your Sales Organization Reducing cost of sales1 2 Continuous Revenue Increase of Install Base 3 Optimizing Sales Team for Max Efficiency
  8. 8. Sales Operations: Sales Compensation COO How do you deal with churn or downsell? What are your business objectives? Market Capture? ACV on bookings or collections is a good base for the compensation plan. Long-term success & comittment? TCV, upsells, and renewals are good elements of a compensation plan. How do you pay your sales reps? Dimensions Available: ACV TCV Contracted Ramp Upsell Usage / Overage
  9. 9. Marketing Automation Freemium Website Big Data Trend & Pattern of Usage Provisioning Entitlement Online Sign-up & Account Mngmnt CRM CPQ Sales Operations: Systems and Automation Marke$ng     Usage   Analysis   Provisioning   Quo$ng   automa$on  
  10. 10. Sales Operations: The Metrics That Matter •  Cost of Sales Ops/Sales –  From 1/2 to 1/12 •  Operational Metrics –  Web visits to hand raise –  Hand raise to opportunity (Freemium?) –  Qualified Freemium users –  Opportunity to close –  Upsell, Add-ons: MRR growth per customer –  ACV; TCV; Contracted Ramp –  Down-sell and Churn Awareness to Hand Raises Hand Raise to Opportunity Qualified Closed New Customers MRR Growth Via Upsells & Add-Ons
  11. 11. Two Sides of the Same Coin •  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells •  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition Subscription Sales Operations Billing & Revenue Operations
  12. 12. Two Sides of the Same Coin •  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition Billing & Revenue Operations
  13. 13. Billing & Revenue Operations: Billing Organization •  Billing processes •  Invoice complexity •  Payments Scaling and Automation This is a mindset change •  Churn prevention (with Customer Care) •  Upsell opportunity (with Sales) Build Customer Relationships Understanding the subscription is critical to managing a complex Revenue Recognition process. Managing a Complex Process
  14. 14. Billing & Revenue Operations: The Metrics That Matter Revenue Recognition Deferred revenue balance MRR Growth DSO / Collections $ of Billing Operations per $ of MRR Time to Bill Churn Prevention = Customer Satisfaction
  15. 15. Sales & Billing Operations Need to Be Integrated/Automated to Be Successful ü  Transactions growth ü  Customer interactions ü  Sales channels ü  Cost of sales ü  Introductory price point ü  Cost of operations
  16. 16. Lessons From Our Customers 1.  Consider putting Sales Ops and Billing Ops together 2.  Remember that Commerce is about relationships so interactions are important 3.  Commerce is multi-channel 4.  It needs to be designed as an end-to-end process around the subscription 5.  Without automation, there is no scale
  17. 17. The COO Perspective Meet The Panelists Brandwatch Bryan Tookey, COO Wiora Software Voker Wiora, Founder Web Interpret Benjamin Cohen, Co-Founder Vlex Angel Faus, CTO Zuora Guillaume Vives , SVP Product Management @gyvives Global Collect Mashfiq Khan, International Business Development Manager
  18. 18. Panel – Share Your Input 1.  Renewals – How do you do it today? Key challenges? Lessons Learned? 2.  Sales Ops and Billing Ops Collaboration – Key opportunities and challenges 3.  (Bonus) Sales compensation – What works best: model focused on market capture or long term revenue optimization
  19. 19. END

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