NetSuite Recurring Billing Module

1. www.curiousrubik.com Office:+1 646 459 2754

2. NetSuite Recurring Billing
Overview

3. Changing Business Landscape - Moving to
Cloud
Software
Hardware
Storage/
Documents
Platform
Media

4. Driving different behavior
Pay-as-you go and Usage-based pricing
I want to
pay less for
off-peak
hours
Pricing
package for
my
business
I want to
pay for
usage
Prorate my
bill based
on
vacation
Perpetual
Subscription
Fixed
Metered
Direct
Multi-tier
Offline
Online

5. New Requirements - Pricing Flexibility
Customers want flexible pricing & packaging

6. New Revenue Models
By 2015, 35% of Global 2000
companies will generate revenue
through subscription-based
services and revenue models
— Gartner, Building a Strategy for the Subscription Economy, April 2011

7. Subscription-based businesses Require….
Multiple, complex pricing/billing
models
1
2
3 Real-time visibility in to business
Flexible, Customer-centric recurring
billing platform

8. Current Solutions
in the Market

9. Too Expensive/
cumbersome
Inflexible/
Not Scalable
Not Integrated
Current options are inadequate

10. Ecommerce
CRM
Billing
Warehouse
Business Cloud - ‘Hairball’
Financials
Marketing

11. Over time:
more money, more resources, more integrations
2
1
3
4
5
Support new usage models & complex invoicing
Effectively manage recurring billing & revenue recognition
Provide accurate billing in timely manner
Leverage new metrics to run subscription business
Get a clear visibility in to business
The Result – You can’t…

12. Risks with inadequate Billing solution
Can’t keep up with Cash Flow due
to big DSO
Inaccurate Revenue Recognition –
misstating revenue
Incorrect & late Invoicing
No visibility in to MRR, Churn,
Renewables, ACV
Lack of customer trust and
satisfaction

13. NetSuite
Recurring
Billing Solution

14. Comprehensive Business Suite:
Billing is not a separate process
Billing
© NetSuite Inc. 2012 Confidential

15. NetSuite Recurring Billing - Supports
Feature Business Benefit
Custom pricing and
discounting plans
Offer right mix of services to
target customers
Automate invoicing Integrate Rev. Rec and update GL
automatically
Multiple renewal options Up-Sell and Cross-sell
opportunities
Flexible proration Align invoice items with pro-
rated charges
Multiple perpetual billing Accurate billing and timely
collection of payments

16. NetSuite Recurring Billing Advantages
Integrates recurring billing with
CRM, ERP, eCommerce
Automates recurring and usage
based billing processes
Adapts to changing billing needs
Integrates revenue recognition with
recurring billing
Quote
Contract
Configurable
Billing Terms
Usage Based
Invoicing
Financial
Reporting
Renewal
Cross-Sell / Up-
sell
© NetSuite Inc. 2012 Confidential

17. NetSuite Recurring Billing Advantages
Centralizes multiple revenue
sources
Embeds analytics at multiple
touchpoints
Integrated & Real-Time
Reporting
© NetSuite Inc. 2012 Confidential

18. NetSuite – Advanced Billing & Pricing
Supports pricing, discounting,
proration and policies
Allows billing frequencies
– monthly, quarterly semi-annually, yearly,
biennial, triennial billing
Supports anniversary & day of
month billing
Easily configurable billing terms &
renewal options
© NetSuite Inc. 2012 Confidential

19. NetSuite – Usage Based Billing
Supports rate pricing on
historical usage
– Trailing periods, custom date
range, within a subscription
Provides minimum or maximum
threshold charges
Allows multiple ways to record
usage
Enables flexible billing
– Flat rate, cumulative tiered rate
& price, volume rate & pricing –
multiple rating models
© NetSuite Inc. 2012 Confidential

20. Why NetSuite?

21. Reference Slides

22. 1. Term must be divisible by billing frequency
2. Term
3. Billing frequency
4. Migrate on renewal
– Used to change price plan upon renewal
5. Subscription cancels at
– End of billing period
– Immediately
Pricing
− Initial discount period
− Initial discount amount
Invoice Options
− Use custom template
− Invoice email timing
Proration
− On sale, on termination
Penalty
− Early termination
Renewals
− Auto
− Manual
− Create opportunity
− Term renewal options
– No term
– Same term
– New term
Rate Plans
Price Plans

23. Rate Plans
Ratable Unit
– The dimension of the usage data that is to be rated
– Dollars, minutes, texts, trucks, alarms, etc
Charging models
– Flat rate
– charge = rate x use
– Cumulative tiered
– tier charge = tier rate x tier use
– charge = sum of tier charges
– Volume tiered
– Highest tier usage selects tier rate
– charge = highest tier rate x total usage
Thresholds
– Included usage, subtracted before tiering and rating
– Minimum usage charge
– Maximum usage charge
Filtering
– Saved searches can be used to filter usage data prior to
rating

24. www.curiousrubik.com
@curiousrubik