2. 2001! 2011
BUY NOW
By 2015, 35% of Global 2000 companies will
generate revenue through subscription-based
services and revenue models.
April 2011: Building a Strategy for the Subscription Economy
TheWorldisMovingtoaSubscriptionEconomy

4. Amazon Prime slide

9. HIGH TECH
SAAS
CLOUD
MEDIA
DEVICES
TELECOM EDUCATION
HEALTH CARE
FINANCIAL
SERVICES
CONSUMER

10. Zuora Receives £36m For
European Expansion
It’s Spreading Around the Globe

11. The Global 2000

12. The Zuora Community is Ground Zero

13. 20Billion
Contracted Invoice Volume

14. 1 New Product
Created Every Hour
On Average …

15. The Face of Innovation

16. 10X Growth
10,012,288
1,536,533
AUG
2012
AUG
2013

17. Investing in Technology

18. 25X 10X60X
Faster Syncs Faster bill runs More capacity

20. Customer Success Staff
2012 2013
Investing in Customer Success

21. 100
90 93 91
95 98
94 96 97 97
0
25
50
75
100
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
“Got my answer in 7 minutes!”
Ruggero Ferreti ,
“Am very satisfied with the
prompt responses to my query.
Gelai is very helpful ”
Nicoal Wylie,
“Lightning Fast!”
Jason Goodworth,

24. Why is All This Happening?

25. Technology
Trends
Smart
Money
Business
Model
Demand
Mobile
Social
Businesses
want
to
subscribe
to
services
Consumers
want
to
subscribe
to
services
Wall
St.
and
Sand
Hill
Value
Subscrip=on-­‐Based
Companies
Cloud

26. Today, there is a Better Way
To Build a Business

27. Business Should Be
Built on Win / Win
Relationships

28. Business Should Be Built on Stable Recurring Revenue

29. Business Should Be
Built on Efficient
use of resources

30. Win/Win
Relationships
One-time transactions
Better Businesses are Focused on
Sustainable,
forward-looking revenue
Efficient, consumption-
based services
Fair, value-based pricing
Backwards-looking
financial reporting
Shipping unit after unit
Fixed, cost-plus pricing

31. The Subscription Economy
IsABetter Way of Doing Business

32. Building Better Businesses

33. We analyzed 6 years of data
1 million conversations
with people building better businesses

34. “What is the best way to price?”

35. “How do I reduce churn?”

36. “How should I compensate my sales force?”

37. “How do I reduce the number of failed credit
card transactions?”

38. “Should I charge a setup or implementation
fee?”

39. “How do I account for multi-year contracts?”

40. “As I expand internationally, what payment or
tax issues will I encounter?”

41. “Should I offer monthly or annual billing
periods?”

42. We analyzed 6 years of data
A picture starts to emerge

43. You are trying to PriceAcquireBillCollectNurtureAccountMeasureIterateScale

44. You are trying to
Price
Acquire
Bill
Collect
Nurture
Account
Measure
Iterate
Scale

45. Price
11%
Acquire
12%
Bill
14%
Collect
12%
Nurture
11%
Account
11%
Measure
9%
Iterate
11%
Scale
9%
Support Cases Categorized By 9 Things

46. Introducing
the
9
Keys
to
Success
in
the
Subscrip=on
Economy

47. PRICE
ACQUIRE
BILL
COLLECT
NURTURE
ACCOUNT
MEASURE ITERATE
SCALE

49. Simple per-unit
pricing
Infinite
pricing options

50. 2220000000
?
A new way to think about pricing

51. Increase
Cash Flow
Drive Down
Cost of Sales
Outflank the
competition
Grab Market
Share
Increase
Loyalty and
Retention
Pivot into a
new segment
Expand
Internationally

52. TheAbility to
Price in support of your business goals
is the first Key for
Success in the Subscription Economy

54. Itsoundseasy

55. Billing
Gateways
fulfillment
provisioning
Immediate or
delayed payment
Connect to
CRM
Notify
Connect to
accounting
Self service vs
assisted flows
Butit’sHarderThanItSeems

56. We live in a B2Any world
B2C B2B

57. The Ability to
Quickly Acquire Customers in a B2Any World
is the second Key for
Success in the Subscription Economy

59. Billing used to be simple
Ship Bill

60. $10
new
customers
Existing
customers
Pro-rate Usage
Ship Bill

61. Confused
customers
Weeks
to
generate
bills
Billing
Errors
Lost
Revenue
1
2
3
4
Everybillisaninteractionwithyourcustomer
“But
I
signed
up
for
the
$100/month
plan”

62. The Ability to
Create Accurate, Clear Invoices at Scale
is the third Key for
Success in the Subscription Economy

64. Electronic payments Non-electronic payments
Credit Cards Debit Cards Wire transfers
Catch exceptions
Multiple card types
Country specific
banking rules
Retries Card updaters
Manual Lockbox
Receive
payment
Notify delinquents
Write off payment ReconcileSuspend service

65. The need to automate
ACH

66. Handling of Exceptions

67. The Ability to
Tame the Complexity of Payments
is the fourth Key for
Success in the Subscription Economy

69. Build Valuable Relationships

70. The Secret:
Give Customers Control of the
Relationship

71. Remember the
2nd Key:
Acquire?
Subscribe

72. That Was Just
the Beginning
Subscribe
Renew
Suspend
Add-on
Upgrade

73. Sign
up
Validate
CC
Validated
Create
Bill
Process
Payment
Create
Account
Link
Account
Confirm
Sign
Up
Welcome
Email
Create
Subscrip=on
Provision
Service
WEBSITE
BILLING
CRM
PLATFORM

75. The Ability to
Nuture And Develop Deeper Customer
Relationships
is the fifth Key for
Success in the Subscription Economy

77. “I’ve got this massive spreadsheet I use
to track Revenue”

78. “It’s Taking Longer and Longer to Close
My Books”

79. “It’s becoming harder to harder to
reconcile financial info across all my
different systems”

80. “The IT department used to be known
as Dr. No …. But now, it’s the finance
department”

81. There’s no accounting for subscriptions
Booking
Subscription
Billing
Cash
Revenue

83. The Ability to
Easily and Quickly Account for
Bookings, Billings, Cash and Revenue
is the sixth Key for
Success in the Subscription Economy

85. You used to track these metrics
Revenue
$100
COGS
(30)
Gross
Profit
70
Opera=ng
Expenses
S&M
(20)
G&A
(10)
R&D
(20)
Total
Op
Ex
(50)
Net
Income
$20

86. Now you track these metrics
ARR
$100
Churn
(10)
Net
ARR
90
COGS
(20)
G&A
(10)
R&D
(20)
Recurring
Profit
40
Growth
(40)
Net
New
ARR
40
Ending
ARR
$130

87. Your current applications don’t give you the
metrics you need

88. The Ability to
Instantly Access
Subscription Economy Metrics
is the seventh key for
Success in the Subscription Economy

90. Pricing iteration is crucial to support growth

91. You can’t afford this …
“The next available engineer will
see you in 6 months”

92. The ability to
Rapidly Iterate On Your Pricing and
Acquisition Strategies
is the eighth key for
Success in the Subscription Economy

94. Why build all this into your service?
Pricing
Payments
Taxation
Billing
Rev Rec
Secure
Mission Critical
Scalable
Rating

95. When you could do this?

96. Integratewithanecosystemthatsupportsyour
service
Customer
support
Inventory
Fulfillment
EnJtlements
Website
Provisioning
Commerce
Billing
Finance
Payments
GL
quoJng
orders
invoices
checks
events
account
status
account
balance
metrics

97. The ability to
Run on a Scalable, Reliable, Mission
Critical Infrastructure
is the ninth key for
Success in the Subscription Economy

98. Introducing
the
9
Keys
to
Success
in
the
Subscrip=on
Economy

99. These are the 9 Keys to Success in the
Subscription Economy

100. These are the 9 Keys to
Building a Better Business

102. Build a Business
Live the 9 Keys
Join the Revolution

105. Join
the
RevoluJon
www.subscrip=onmanifesto.com
via
the
Subscribed
Mobile
App
via
Manifesto
signing
sta=ons
#subscripJonmanifesto

106. Thank you to our sponsors.
#subscribed13

107. Mobile App
Customer
Lead
Sessions
Product
Vision
Keynote
Do not
miss.
#subscribed13
Cocktail
RecepJon
Zuora
Demo
Booth

108. Get your mobile app.
Search your app store for “Subscribed”
Download
Accept push notifications for conference updates
#subscribed13