Subscribed 2013 Sydney Keynote
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The document discusses the growing subscription economy and the keys to success within it. It identifies 9 keys to success: pricing, acquiring customers, billing, payments, nurturing customer relationships, accounting, metrics, iteration, and infrastructure. Each key requires a different approach than traditional commerce models in areas like pricing, billing, and finance to properly support the needs of the subscription business model.
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Subscribed 2013 Sydney Keynote
- 2. The World is Moving to a Subscription Economy BUY NOW 2001! 2011 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
- 6. #Subscribed13 tweets will receive 50% off first shipment
- 12. The Zuora Community is Ground Zero
- 13. The Face of Innovation
- 15. The Global 2000
- 17. On Average … 1 New Product Created Every Hour
- 20. 60X 25X 10X Faster Syncs Faster bill runs More capacity
- 22. Investing in Customer Success Customer Success Staff 2012 2013
- 23. 100 100 90 93 91 95 98 94 96 97 97 "Prompt response even though was delegated non urgent" 75 Lauren Wood, 50 "Amazing as usual. Thanks Rossi.” "The response was quick and detailed." 25 Juan Delard de R. Jalal Radwan, 0 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
- 25. We analyzed 6 years of data 1 million conversations with subscription economy leaders
- 26. “What is the best way to price?”
- 27. “How do I reduce churn?”
- 28. “How should I compensate my sales force?”
- 29. “How do I reduce the number of failed credit card transactions?”
- 30. “Should I charge a setup or implementation fee?”
- 31. “How do I account for multi-year contracts?”
- 32. “As I expand internationally, what payment or tax issues will I encounter?”
- 33. “Should I offer monthly or annual billing periods?”
- 34. We analyzed 6 years of data A picture starts to emerge
- 35. You are trying to Price Acquire Bill Collect Nurture Account Measure Iterate Scale
- 36. Importance of each of the 9 things 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9
- 37. Support Cases Categorized By 9 Things Iterate 11% Scale 9% Price 11% Acquire 12% Measure 9% Bill 14% Account 11% Nurture 11% Collect 12%
- 38. Introducing the 9 Keys to Success in the SubscripNon Economy
- 42. A new way to think about pricing ? 2220000000
- 43. Increase Cash Flow Increase Loyalty and Retention Outflank the competition Grab Market Share Pivot into a new segment Expand Internationally Drive Down Cost of Sales
- 44. The Ability to Price in support of your business goals is the first Key for Success in the Subscription Economy
- 46. It sounds easy
- 47. But it’s Harder Than It Seems Gateways Connect to CRM Billing Notify Immediate or delayed payment provisioning fulfillment Self service vs assisted flows Connect to accounting
- 48. We live in a B2Any world B2C B2B
- 49. NCR Silver Bill Plummer launched new service automated commerce, billing and finance in just 2 months
- 50. The Ability to Quickly Acquire Customers in a B2Any World is the second Key for Success in the Subscription Economy
- 52. Billing used to be simple Ship Bill
- 54. Every bill is an interaction with your customer 1 Confused customers 2 Weeks to generate bills 3 Billing Errors 4 Lost Revenue “But I signed up for the $100/month plan”
- 55. Firehost Katrena Drake hands-off invoicing for thousands of clients with complex usage billing models in multiple countries
- 56. The Ability to Create Accurate, Clear Invoices at Scale is the third Key for Success in the Subscription Economy
- 58. Electronic payments Credit Cards Debit Cards Non-electronic payments Wire transfers Manual Lockbox Multiple card types Catch exceptions Retries Card updaters Notify delinquents Suspend service Write off payment Country specific banking rules Receive payment Reconcile
- 59. The need to automate DIRECT DEBIT
- 61. Xplornet Xplornet processes hundreds of thousands of payments in hours Across multiple payment methods And manages payment exceptions and retries automatically
- 62. The Ability to Tame the Complexity of Payments is the fourth Key for Success in the Subscription Economy
- 65. The Secret: Give Customers Control of the Relationship
- 67. Subscribe Renew That Was Just the Beginning Suspend Add-on Upgrade
- 68. WEBSITE CRM BILLING Validate CC PLATFORM Confirm Sign Up Sign up Validated Create Account Create SubscripNon Create Bill Welcome Email Link Account Provision Service Process Payment
- 70. News InternaKonal Implemented “Holiday Stops” in a matter of weeks allowing hundreds of thousands of subscribers to suspend service online or via call center
- 71. The Ability to Nuture And Develop Deeper Customer Relationships is the fifth Key for Success in the Subscription Economy
- 73. “I’ve got this massive spreadsheet I use to track Revenue”
- 74. “It’s Taking Longer and Longer to Close My Books”
- 75. “It’s becoming harder to harder to reconcile financial info across all my different systems”
- 76. “The IT department used to be known as Dr. No …. But now, it’s the finance department”
- 77. There’s no accounting for subscriptions Booking Subscription Billing Cash Revenue
- 79. Dyn Gray Chynoweth Our monthly close is 3 days shorter I get 3 days better intelligence and 3 days better business operations every single month
- 80. The Ability to Easily and Quickly Account for Bookings, Billings, Cash and Revenue is the sixth Key for Success in the Subscription Economy
- 82. You used to track these metrics Revenue $100 COGS (30) Gross Profit 70 OperaNng Expenses S&M (20) G&A (10) R&D (20) Total Op Ex (50) Net Income $20
- 83. 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 Retention Rate Recurring Profit Margin Growth Efficiency Index
- 84. Your current applications don’t give you the metrics you need
- 85. SendGrid Jim Franklin When the board calls we‘re able to give them actuals from prior months And visibility into future revenues
- 86. The Ability to Instantly Access Subscription Economy Metrics is the seventh key for Success in the Subscription Economy
- 88. Pricing iteration is crucial to support growth
- 89. You can’t afford this … “The next available engineer will see you in 6 months”
- 90. The ability to Rapidly Iterate On Your Pricing and Acquisition Strategies is the eighth key for Success in the Subscription Economy
- 92. Why build all this into your service? Secure Billing Rating Pricing Taxation Payments Rev Rec Mission Critical Scalable
- 93. When you could do this?
- 94. Integrate with an ecosystem that supports your service Website Customer support orders invoices Commerce quoKng checks Provisioning events Inventory account status Fulfillment account balance metrics EnKtlements Billing Payments Finance GL
- 95. The ability to Run on a Scalable, Reliable, Mission Critical Infrastructure is the ninth key for Success in the Subscription Economy
- 96. Introducing the 9 Keys to Success in the SubscripNon Economy
- 97. These are the 9 Keys to Success in the Subscription Economy
- 98. The 9 Keys Require Different Systems
- 99. The 9 Keys Require a Different Approach to COMMERCE
- 100. Change to Tesco instead of Target
- 101. • Amazon cart
- 102. PROBLEM : • Don’t support consumptionbased pricing models • Can’t Deal with Time • Can’t nurture subscriber relationships • Are not multi-channel
- 105. ü Overage ü Flat Fee ü Smoothing ü Per Unit ü Rollover ü Volume ü Uplifts ü Prepay ü Tiered Overage ü Tiered ü 2 Years Features blurb ü Annual ü 5 Years ü Monthly ü 18 Months ü Quarterly ü Specific Months ü Free Trials ü Semi-Annual ü Discounts ü Promotions Pricing Engine For Infinite Levels Of Monetization
- 106. ü Subscribe Orders ü Upgrade Orders ü Downgrade Orders Features blurb ü Renewal Orders ü Cancellation Orders ü Add-On Orders Lifecycle Orders To Manage Changing Levels Of Relationships
- 107. ü Subscription Quotes ü 360 Sync Features blurb ü ZDK ü REST APIs ü Ruby and Java Toolkits Multi Channel Platform Enabling Commerce Anywhere, Anytime
- 108. ü Quote Wizard ü Reusable Page Components ü Product Selector Features blurb ü Account Selector ü List Components ü Discount Configuration Configurability Enabling Rapid Deployments Of Tailored Experiences
- 109. Powers Relationship Commerce Pricing Engine Lifecycle Orders Multi-Channel Platform Configurability
- 110. The 9 Keys Require a Different Approach to BILLING
- 111. Invoicing vs Billing
- 112. • Create clear, accurate invoices • Scale from 1 to 10 million invoices • Tame the complexity of payments and collections • Support any payment method
- 113. Billing Automation Invoice Presentment Payment Automation On demand or batch rating Template Configuration Breadth of gateways Trigger Based Billing Template Library Exception Management Notifications and Alerts Invoice Delivery Adjustments & Write-Offs
- 114. The 9 Keys Require a Different Approach to FINANCE
- 115. 1494 A.D. Luca Bartolomeo Pacioli inventor of Double Entry Bookkeeping
- 116. Can’t handle subscription changes Can’t spread revenue over time Can’t differentiate between one time and recurring amounts
- 117. PROBLEM : • Don’t differentiate between onetime and recurring amounts • Can’t spread revenue over time • Don’t know what to do when subscriptions change
- 119. ✔ ✔ ✔ ✔ ✔ Define rules to manage complex revenue recogniKon policies Tag charges with revenue revenue and deferred revenue GL accounts Tag charges with with revenue recogniKon rules Control revenue recogniKon trigger dates View earned and deferred revenue reports Accounting Close Tools Tools to accelerate your month-end close
- 120. ✔ ✔ ✔ ✔ ✔ Define rules to manage complex revenue recogniKon policies Tag charges with revenue revenue and deferred revenue GL accounts Tag charges with with revenue recogniKon rules Control revenue recogniKon trigger dates View earned and deferred revenue reports Revenue Recognition Tools That handle complex revenue rules
- 121. ✔ ✔ ✔ Create or import your chart of accounts Tag charges with GL account codes Tag transacKons such as payments, credits, refunds, adjustments etc with GL account codes Chart of Accounts to track charges through the revenue lifecycle
- 122. ✔ ✔ Generate debit and credit journal entries to simplify your general ledger updates Align journal entries with GL accounts Easy Accounting Integration to unburden your IT team
- 123. ✔ Reuse the audit peace of mind screen shot from the website ✔ ✔ Create custom user roles Associate roles with granular user permissions Control visibility and user acKons on sensiKve financial data Tight Security Controls For audit peace of mind
- 124. Full Subscription Subledger Accounting Periods Revenue Rules Engine Chart of Accounts Journal Entries Trial Balances Auditability Journal Entries
- 125. A subscription subledger for your general ledger General Ledger
- 126. The 9 Keys Require Commerce, Billing and Finance to work together
- 127. Traditional Business Commerce Billing Finance Book Order & Ship It Invoice & Collect For It Recognize It
- 134. Introducing The first relationship business management system
- 135. Demo
- 136. The first relationship business management system