What are the most common metrics that subscription businesses use to measure the performance and health of their businesses? Learn how to leverage Zuora's reporting capabilities to help you stay up-to-date on your net MRR trends, churn risk, usage trends, cash/AR, and revenue. Check out Zuora Academy for more actionable advice for finance, marketing, tech, operations, product, and more. All the info you need to build and run an amazing subscription business: https://www.zuora.com/academy/

1. Measure the health of your
subscription business
Chris Bruner
Product Management, Zuora
Jeff Barlam
Controller, LogicMonitor
6 Ways to Measure the Health of
Your Subscription Business
Chris Bruner
Product Management, Zuora
Jeff Barlam
Controller, LogicMonitor

2. emerging trends
traditional responsibilities are changing
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Use leading indicators that
tell you where you are
headed
measure current
performance
Target based on deep
understanding of
subscribers
transform your
business
Leverage everything you
know about your
subscribers
project future
performance

3. why the change?
customer relationships drive growth
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>20%growth from upsells
The portion of ACV growth from upsells rises the larger a
business becomes, ultimately rising to a quarter of
business for companies with more than $25M in revenue
>80%lower acquisition costs
The cost of gaining $1 of new ACV through upsell is a
fraction of the cost of gaining the same $1 of ACV by
acquiring a new customer

4. why the change?
customer relationships shape trajectory
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3 years of MRR growth
+ 2% net churn
3 years of MRR growth
- 2% net churn

5. how businesses can respond
our viewpoint
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understand recurring revenue drivers
Know how your business is trending, be able to break down growth into gains from new business and
expansion and losses from contraction and churn, and understand how this behavior is changing for each of
your cohorts over time.
link the two together to drive growth
Connect subscriber identity and subscriber outcomes to gain a world class understanding of where the
opportunities in your business lie and how to grow your subscriber relationships.
understand the identity and moments of each subscriber
Organize all of your customer moments (lifecycle events, customer touchpoints, or application behaviors)
around a single subscriber identity.

6. understanding recurring revenue drivers
a new set of metrics
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“Where I’m Headed”
Non-GAAP
Accounts Receivable
Cash
Revenue
Deferred Revenue
New customer growth rate
Annual Recurring Revenue (ARR)
Changes in ARR (Bookings)
Churn
Net Retention
Average Revenue Per User (ARPU)
Growth Efficiency (GEI)
“Where I’ve Been”
GAAP

7. understanding recurring revenue drivers
an example
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What is your business’ health?
What is driving that?
How can we affect it?

8. understanding business health
guest speaker
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Jeff Barlam
Controller,
LogicMonitor

9. understanding business health
guest speaker
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what do you measure and why?

10. we have been investing in reporting to support this
recent focus
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intuitive way of working with Zuora data new customer-centered data sets

11. where we are headed next
roadmap
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dashboards
Visualize trends and patterns in
subscriber behavior in charts and
assemble them into dashboards for
your teams
calculated values
Define custom calculations in
reports to support cohort analysis,
as of date analysis, and much richer
analytics
In reporting and dashboards,
seamlessly work across both Zuora
data and user data from Insights
integrated analytics

12. next steps
how to get involved
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join la program
Take part in early release of our new reporting capabilities.
join design guidance program
Provide feedback on designs for our next wave of enhancements.

13. Check out Zuora Academy for more great info and actionable
advice.
All the info you need to build and run
an amazing subscription business.
https://www.zuora.com/academy/