Transitioning to a Subscription-based Business Model
1. Transi0oning
to
a
Subscrip0on-‐based
Business
Model:
A
Checklist
for
Success
hosted
by:
2. Jon
Ge@nger,
SVP
Marke0ng
Ashley
S0rrup,
SVP
Product
and
Solu0on
Marke0ng
hosted
by:
3. Subscrip0on
businesses
by
the
numbers
Subscrip0on
businesses
by
the
numbers
10
10%
3.1
3.1
100
6x
Chance
customers
will
become
loyal
if
they
are
not
loyal
within
Chance
customers
will
become
the
first
90
days
a8er
provisioning
loyal
if
they
are
not
loyal
within
the
first
90
days
a8er
provisioning
Years
before
a
customer
become
profitable
Years
before
a
customer
becomes
profitable
Percent
of
profits
from
exis>ng
customers
for
subscrip>on
More
expensive
to
acquire
a
new
customer
vs.
renew
an
businesses
exis>ng
customers
hosted
by:
4. Subscrip0on
customer
lifecycle
Acquire
Retain
• What
is
the
right
plan?
• Is
usage
mee0ng
expecta0on?
• How
to
transi0on
from
free
to
paid?
• Are
customers
comple0ng
the
on-‐
boarding
and
training?
• What
are
your
compliance
and
en0tlement
policies?
Renew
Grow
• What
is
the
• What
are
the
correla0on
between
upsell
&
cross-‐sell
usage
and
price?
opportuni0es?
• What
payment,
pricing
and
terms
are
available?
• What
is
the
next
best
offer
based
on
derived
value?
• Are
customers
seeing
the
full
value
of
the
offering?
hosted
by:
5. Metrics
to
measure
performance
throughout
the
lifecycle
Acquire
• Customer
Acquisi0on
Cost
Ra0o
(CACR)
• Breakeven
point
• Free
Trail
Conversion
Rate
Retain
• Cancela0on
Reason
Analysis
• End
User
Adop0on
• Usage
Analy0cs
Renew
Grow
• Renewal
Rate
• Upsell/Cross-‐Sell
Rate
• Churn
Rate
• Customer
Renewal
Cost
Ra0on
(CRCR)
• Customer
Life0me
Value
(CLV)
• Conversion
Reason
Analysis
hosted
by:
6. Automa0ng
the
customer
experience
Acquire
• On
boarding
• Service
enablement
• Coupon
redemp0on
Retain
• Single
view
of
your
customers
• Mul0ple
plan
offerings
Renew
Grow
• Self
service
• Offer
triggers
• Assisted
• Plan
op0miza0on
hosted
by:
7. Ac0onable
tasks
based
on
segmenta0on
High
Risk
HI
•
•
•
Immediate
save
play
Adop0on
plays
/
on-‐boarding
plays
High-‐touch
customer
engagement
Moderate
Risk
MED
•
•
•
Iden0fy
any
specific
factors
(e.g.
compe00on)
Adop0on,
training,
or
upsell
plays
Watch
list
with
quarterly
contact
Low
or
Very
Low
Risk
LOW
•
•
•
•
Low-‐touch
renewals
play
120
days
before
expira0on
Self-‐service
op0ons
with
annual
customer
check-‐ins
Cross-‐sell
play
Collect
quan0ta0ve
characteris0c
data
to
confirm
segmenta0on
hosted
by:
8. Automa0on
vs.
high-‐touch
engagement
Determine
the
best
type
of
customer
engagement
based
on:
8%
• Usage
• Subscrip0on
value
• Poten0al
CLV
• Health
score
by
engaging
with
customers
on
a
quarterly
basis
Consider
role
specializa@on
based
on
business
needs
and
complexity
of
your
solu0on
hosted
by:
9. Current
Recurring
Revenue
Alliance
Members
Recurring
Sales
Recurring
Revenue
Analy@cs
Data
&
Integra@on
hosted
by:
10. How
we
can
help
Increase
renewal
rates
and
efficiency
Op0mize
subscrip0on
revenue
throughout
the
customer
lifecycle
15pt
improvement
in
renewal
rates*
20%
increase
in
sales
produc0vity**
Op>onal
Maximize
performance
with
our
experts
in
customer
success
and
renewal
sales
Best
prac>ce
process
&
industry
benchmarking
*Based
on
internal
studies,
companies
who
worked
with
ServiceSource
reduced
churn
by
an
average
of
9
points
**ServiceSource
internal
study
comparing
sales
produc>vity
before
and
a8er
using
Renew
OnDemand
showed
an
average
increase
of
20%
hosted
by: