Subscribed World Tour Keynote: London, 2015
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Zuora CEO, Tien Tzuo, kicks off Subscribed 2015 in London with a powerful keynote addressing the global impact the Subscription Economy is making on businesses, consumers and technology. He shares the stage with Anthony Fletcher, CEO of Graze, Pete Tomlinson, Sales & Marketing Director, KCOM and Mark Beard, Marketing & Circulation Director at The Economist.
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Subscribed World Tour Keynote: London, 2015
- 2. A luxury travel destination club. A pet insurance provider. A weight loss program. A farming equipment provider in New Zealand. A personal meditation app. A professional soccer scouting service. A school lunch program. A wedding publisher. A French home furnishings company. A restaurant reservation seating system. A streaming Japanese anime provider. A fashion industry marketing service. A plumbing & handyman service. A major American airline. A major American automobile manufacturer. A smart thermostat. A credit card company. A textbook publisher. A home rental service. A cable TV company. A foreign language learning program. A standardized test preparation service. A 131 year-old cash register manufacturer. A home improvement and interior design community. A salon & spa management platform. A radio network. A hospital news publisher. An Ivy League university. A national telecom. A legal contract resource. A lock manufacturer. A smart phone manufacturer. A private jet service. A toothbrush delivery service. A multinational OEM. An 83 year-old beauty supply company. A mobile gaming company. A food takeout delivery service. A real estate agent community. A Swiss travel agency. A streaming music service. A weather data service. A 160 year-old British financial newspaper. A recreational boat marketplace. A home security company. A French restaurant guide. A visual effects studio.
- 3. WELCOME TO SUBSCRIBED 2015
- 4. WE HAVE BEEN ON AN INCREDIBLE JOURNEY
- 5. Products 1970s Product + Services 1990s Customer Centric 2000s Relationship Centric Today WE ARE LIVING IN A DIFFERENT ERA
- 6. WE ARE HERE TO CELEBRATE YOU
- 11. IN 5 SHORT YEARS YOU’VE TRANSFORMED THE MARKET
- 12. CUSTOMERS HAVE CHANGED OUTCOMES Not Ownership CUSTOMISATION Not Generalisation CONSTANT IMPROVEMENT Not Planned Obsolescence
- 13. CUSTOMERS NOW EXPECT THE SUBSCRIPTION EXPERIENCE
- 14. EVERY INDUSTRY HAS SHIFTED Auto Streaming Media Print Media Tech Education Retail Music
- 15. 2015: THE SUBSCRIPTION ECONOMY IS OFFICALLY MAINSTREAM
- 16. YOU Are Changing The World
- 17. “We've moved from selling boxes, cloud, mobility, or any other solution to partner with customers on their outcomes.” John Chambers, CEO, Cisco May 2015 YOU CHANGED TECHNOLOGY
- 18. "There's a secular movement that's happening ... more to an annuity relationship as well as a subscription relationship. These are the long-term relationships we want to have with all customers. There will be an increasing emphasis on the lifetime value that we can deliver to customers.” Satya Nadella, CEO, Microsoft May, 2015 YOU CHANGED TECHNOLOGY
- 20. YOU CHANGED THE MUSIC INDUSTRY Beats Tidal iTunesPandora 45B Likes Spotify 60M Users $3B value Jay Z Down 20%
- 21. YOU CHANGED TRANSPORTATION General Motors is Live on Zuora
- 22. THE UK NEWSPAPER INDUSTRY IS NOW LIVE ON ZUORA Times of London Time UKThe GuardianThe Sun The Financial Times The Telegraph
- 25. 50% Of people in France are moving away from ownership. Traditional consumption models don’t meet the demands of consumers who now favor flexibility and unlimited access. Market study: Institut Français D’opinion Publique (IFOP) THE FRENCH HAVE GONE SUBSCRIPTION
- 26. THE GERMANS HAVE GONE SUBSCRIPTION 80% Of German companies have dealt with the issue of subscription business models. Subscription models have already arrived in the minds of board members. Market study: IDG Research Services
- 27. WE EXPANDED ACROSS THE GLOBE Munich Gothenburg Tokyo Vienna Copenhagen Berlin Boston Cologne Amsterdam Denver
- 28. We Will Continue To Invest In Product
- 29. 95%Customer Satisfaction For 15 Quarters 2Stevie Tech Support Awards 100%Growth In Our CS Team
- 30. 1BAPI Calls Per Month 25MInvoices Per Month 50MSubscription Amendments 2XPayments Processed
- 31. In The Academy
- 32. $50BTotal Contracted Invoice Volume
- 33. OUR WORLD IS CHANGING… TWO STORIES.
- 34. MARK BEARD VP, Digital Media & Content Strategy
- 36. THE ECONOMIST IS CONSISTENTLY PROFITABLE AND CIRCULATION HAS GROWN
- 37. THE ECONOMIST’S PROFIT IS DRIVEN THROUGH TWO SOURCES Subscription revenueAdvertising revenue
- 38. WE SPOTTED INDUSTRY ADVERTISING TURMOIL EARLY, AND REACTED QUICKLY
- 39. WE SAW HUGE POTENTIAL TO GROW OUR NUMBER OF SUBSCRIBERS BY CHALLENGING PERCEPTIONS ABOUT THE BRAND
- 41. WE DECIDED TO INCREASE OUR INVESTMENT IN TOP-OF-THE-FUNNEL SUBSCRIPTION MARKETING Display Mobile Social Email Order page Search Brand
- 42. WE USED EXISTING CUSTOMER DATA TO HELP US BUILD A POOL OF PROSPECTS
- 43. WE LINKED THEM TO UNEXPECTED CONTENT…
- 45. WE PLACED OUR ADS, CONTEXTUALLY, WHERE WE KNEW OUR AUDIENCE WOULD BE GRAZING
- 46. AND WE CREATED A SIMPLE AND FRICTIONLESS CUSTOMER JOURNEY “A content marketing strategy that marries a cheekily inventive approach with state of the art dynamic units - all clicking through to a customised soft landing page where new readers can consume a piece of content and then go on to register or subscribe.“ The Drum “Content led” traffic generation “Content Hub” to engage with content Subs Re-target With more content
- 47. WE SAW A POSITIVE SHIFT IN PERCEPTIONS OF THE ECONOMIST BRAND... NAMELY IN RELEVANCE AND ADVOCACY
- 48. AND THE PRIZE FOR OUR EFFORTS… Significant Growth in the Number of New Readers and Subscribers to The Economist 6M new visitors The beginning of many long-term relationships £12M in lifetime recurring revenue Thousands of new subscribers
- 49. THE WINNING FORMULA + Clever use of 1st party subscriber data + Seamless customer journeys + Provocative headlines + Inspired content = Subscription Success
- 50. LITERALLY, WINNING. Cannes Lions Award: Best Use of Real-Time Data
- 52. Good just got interesting
- 53. Direct to consumer FMCG channels Graze sells through two channels
- 55. A strong financial model has given revenue and profit growth 4 12 32 62 82 105 -‐2 -‐2 6 16 19 14 -10 10 30 50 70 90 110 Graze revenue and EBITDA $, millions FX: 1.55 $/£ • Negative working capital • Double digital EBITDA margins • Low capital expended on distribution • Control of pricing • Insulation from input prices • Economies of scale realised through automation and procurement scale Strong financial model
- 56. It’s model has 5 advantages over pure FMCG brands A proprietary and rapidly changing product range Ability to build brand Data to improve product and service Create unique experiences Multichannel advantages
- 57. Ability to build brand Direct communication 0% 1% 2% 3% 4% 5% 6% Q: Thinking about brands of products that make or sell healthy snacks, which BRANDS, if any, can you think of? N=2010 Heavyweight spend Highly differentiated Top 10 in snacks
- 58. Graze online data 3rd party loyalty schemes EPOS sales 3rd party online data Data to improve product and service
- 59. A proprietary and rapidly changing product range Quickly reaches customers Rapid data analytics Product team create new product Specially designed processes bring products to market rapidly grazer rates
- 60. A unique experience Conveniently delivered through na5onal post networks A large, frequently changing range of products which cannot be purchased elsewhere Personalised to customer taste and dietary preferences With new benefits of discovery, explora5on and surprise
- 61. Online/Offline Customer journeys Media Gather online informa6on Trial product in store Try products online Word of mouth Regular store buyer Regular online buyers Rapid data analytics Product team create new product Specially designed processes bring products to market rapidly Quickly reaches customers grazer rates Marketing spend Drives multiple channels Brand building Trust Familiarity Excitement Dis5nc5veness Reach New Leverage data And innovation advantages Multichannel advantages
- 63. What’s next?
- 64. OUR WORLD IS CHANGING…
- 65. THE NEW IMPERATIVE: TURN CUSTOMERS INTO SUBSCRIBERS
- 67. DELIVER A SUBSCRIPTION EXPERIENCE A product is not enough (VP of Innovation)
- 68. INNOVATE AND ITERATE ON BUSINESS MODELS (CMO)
- 69. MODERNIZE FINANCE Now it’s about recurring revenue (CFO)
- 70. SCALE EFFORTLESSLY New offerings. New geographies. (CIO)
- 71. KNOW YOUR SUBSCRIBERS Be personal. Be valuable. (VP Sales)
- 72. DELIVER A CONSISTENT EXPERIENCE Anytime, anywhere, any channel. (COO)
- 73. BUILD A SUBSCRIPTION CULTURE Goodbye to one-hit products (CEO)
- 74. Marketing Product Sales Finance IT Ops A product ? ? THIS IS HOW YOU OPERATE TODAY
- 75. PUT SUBSCRIBERS AT THE CENTER Marketing FinanceSales IT Product Ops
- 76. MANY OF YOU HAVE SILOED SYSTEMS Pricing Quoting Billing Revenue ? ? E-commerce
- 77. EVERY SYSTEM THAT TOUCHES THE SUBSCRIBER MUST CHANGE Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue
- 78. Without the right systems, you can’t turn customers into subscribers • A subscription experience • Business model innovation • Modernize finance • Scale effortlessly • Know your subscribers • A subscription culture
- 79. A NEW PROSPECT-TO-CASH SYSTEM IS NEEDED Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue Relationship Business Management
- 80. Use ERP? Build your own system? Stitch together niche solutions? YOUR OPTIONS
- 81. Everything you need to power a subscription business, from z to a 81
- 83. Existing enterprise systems no longer work product distributed to customers via different channels customer visits different channels to manage products upgrade, downgrade, renew uses the product
- 85. CPQ E-COMMERCE BILLING REVENUE A SINGLE UNIFIED SOLUTION INSIGHTS
- 86. PRICING & PACKAGING • One time, recurring and usage pricing • Mix and match charge models • Promotions and discounts • Packaging and entitlements • Multi-currency pricing
- 87. CPQ • Guided selling • Branded quoting • Product bundling • Product and pricing rules • Lifecycle order management • One click quote-to-invoice
- 88. E-COMMERCE • PCI compliant payment pages • Dynamic localization • Built-in credit card validation • Account self-service • REST and SOAP APIs for multi-channel engagement
- 89. BILLING & PAYMENTS • High volume billing automation • 200+ currencies, 21+ gateways, 8+ global payment methods • Invoice personalization + localization • Integrated tax • Intelligent error handling
- 90. REVENUE • Revenue rules engine • Revenue schedule automation • Revenue recognition reports • Revenue journal entries • Revenue allocation tracking and audit log
- 91. ANALYTICS • Bookings, billing, cash, revenue reports • Subscriber usage and behavioral analytics • Smart subscriber segmentation • Insights-driven engagement triggers • Intuitive, interactive report builder interface (New!)
- 92. RBM Unifies Your Entire Business Around Your Subscribers Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue
- 93. TO HELP YOU TURN CUSTOMERS INTO SUBSCRIBERS
- 94. PETE TOMLINSON Director, Sales & Marketing KCOM
- 95. Q: Tell us a little bit about KCOM
- 96. Q: How did you come to join the Subscription Economy?
- 97. Q: How has KCOM changed to take advantage of this shift?
- 98. Q: What internal challenges have you had to overcome?
- 99. Q: What led you to partner with Zuora?
- 100. Q: Is Life Better With Zuora?
- 101. RBM Unifies Your Entire Business Around Your Subscribers Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue
- 102. LET’S TAKE A LOOK
- 103. CHRIS BRUNER Product Manager + JING JING XIA Product Marketing
- 105. Pricing & packaging PRODUCT & MARKETING
- 108. Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue A UNIFIED VIEW OF EVERY SUBSCRIBER
- 109. Turn by turn navigation Roadside assistance Sirius XM Emergency connect Traffic pulse Wifi connectivity CARSPOT
- 110. ü Flexible pricing & packaging engine ü Complete set of modules for the company ü Common view around the subscriber
- 111. OUR WORLD IS CHANGING
- 112. SUCCESS = DELIVERING THE SUBSCRIPTION EXPERIENCE
- 113. THE KEY IS RELATIONSHIP BUSINESS MANAGEMENT Pricing & packaging Quoting E-Commerce Billing Payments & collections Revenue
- 114. DOING THIS CHANGES EVERYTHING
- 115. Marketing Panel : The Subscription Marketing Master plan IOT Panel: IOT & the founding of digital transformation Customer service in the Subscription Economy Zuora product: Billing & Collections Finance Panel: The Modern CFO, from geek to guru Media Panel: Think like a disruptor: Lessons from media companies Navigating the subscription billing market Zuora Product: CPQ CIO Panel: The New CIO SaaS Panel: Lessons learnt from subscription veterans What’s next for content monetization Zuora Product: Insights Networking & Cocktails ROLE BASED PANELS INDUSTRY PANELS EXPERT PRESENTATIONS PRODUCT PRESENTATIONS STARTUP BATTLE The Rest of Today
- 117. CPQ FOR SUBSCRIPTION BUSINESSES INSIGHTS THAT INCREASE REVENUE & REDUCE CHURN MONETIZING THE INTERNET OF THINGS
- 118. GO OUT AND CONTINUE TO CHANGE OUR WORLD
- 120. THANK YOU.
Notas del editor
- GOOD MORNING, I AM WELCOME TO SUBSCRIBED 2015, WORLD CITY TOUR CITIES PARIS on FRIDAY but here in the BREWERY 12 MONTHS ON – ENGAGEMENT TEAMS – WELCOME ATTENDEES FROM OVERSEARS LONGSTANDING CUSTOMERS DISRUPTORS SUBSCRIPTION ECONOMY TIEN – PERMEATES our LIVES – CUSTOMER EXPERIENCE - RELATIONSHIP -------- Slide Change - Agenda
- RBM - is great Project X is great But together they are GAME CHANGING →
- https://www.youtube.com/watch?v=-PGgwA-agkk Driving change, modernizing, refashioning, existing companies being tansformed
- Auto = GM Steaming Media = HBO Print Media = UK newspapers Tech = Microsoft Education = Lynda Retail = Habitat Music = Spotify ----- Meeting Notes (9/13/15 13:19) ----- hit heavy here - bring it back to the audience amimate with logos?
- In 2015 look at the world you’ve created. Because of you the subscription economy is now a mainstream phenomenon The momentum we’ve seen this year
- http://expandedramblings.com/index.php/pandora-statistics/
- http://expandedramblings.com/index.php/pandora-statistics/
- http://expandedramblings.com/index.php/pandora-statistics/
- 191 new customers have joined Zuora’s RBM platform since last year https://zuora.my.salesforce.com/00O70000004Eg4x
- We did a study of the French market with the Institut Français D’opinion Publique (IFOP), that revealed profound changes in people’s consumption patterns. More than 50% of people in France are moving away from ownership/traditional models of consumption Traditional ownership models no longer meet the demands of consumers who now favor flexibility and unlimited access. People want to easily renew their contracts and have the latest models Trend is biggest among young people and professionals in urban centers (paris) Right now the trend is most visible among products like print, movies, music But will expand to more types of products in the future: Travel, mobile phones IT, toys, fashion accessories, clothes from top brands, household appliances and furniture The French associate subscription models with values typically associated with the Cloud (innovation, freedom and shared services).
- We did a separate market study this year in Germany with IDG research services. Was focused on business rather than consumers. We found that While companies see the trend toward subscription-based business models, but their existing system landscapes do not meet the new requirements. Ever-changing buyer behavior and growing customer demands in an increasingly digitized world pose a major challenge for companies. There is an increasing need to adapt business models and associated processes extensive flexible. Subscription models have already arrived in the minds of board members: 80 % OF COMPANIES have dealt with the issue of subscription business models. 80 % OF COMPANIES also believe that they need new metrics to adequately measure the success of their subscription business. Problem is… ONLY 2% OF COMPANIES can easily implement or modify a new subscription model with their existing systems/ have dealt with the issue of subscription business models. - companies lack the flexibility in their IT structures to implement changes quickly
- The subscription experience Meaningful, ongoing relationships (built through subscription services) You (people) We are all subscribers in our personal and professional lives We exist to help real people (subscribers) get services in the easiest way possible. And we exist to help companies (like yours!) and the people who work in them shine. The power of RBM You, and all of our customers, have exciting products and a vision to monetize business relationships. But what’s most important is that at the other end of every RBM system we sell, there are real, live human beings. Whether they’re consumers or B2B, subscriptions are making their lives that much easier, that much more flexible, and that much more free.
- Add stats from script here
- Story gist: Declining Ad revenues + Brand perception problem leads Economist CEO to invest $2M on top of funnel acquisition to increase subscriber revenue bet big on subscriber revenue model Customer data + customer journeys: Economist uses customer data to serve up relevant high-quality content online to pique reader’s interest and guide them towards a customer/subscriber journey with the Economist
- .
- Story gist: Declining Ad revenues + Brand perception problem leads Economist CEO to invest $2M on top of funnel acquisition to increase subscriber revenue bet big on subscriber revenue model Customer data + customer journeys: Economist uses customer data to serve up relevant high-quality content online to pique reader’s interest and guide them towards a customer/subscriber journey with the Economist
- As for Graze, here are a few more questions: Q: As you add more products how do you introduce them to your customers? Q: How do you continue to communicate with your customers so they know you are listening and learning about their preferences? Q: What are the ONE or TWO most important things you have learned or you would like to share with others who are opening new subscription businesses or entering new markets?
- Story gist: Declining Ad revenues + Brand perception problem leads Economist CEO to invest $2M on top of funnel acquisition to increase subscriber revenue bet big on subscriber revenue model Customer data + customer journeys: Economist uses customer data to serve up relevant high-quality content online to pique reader’s interest and guide them towards a customer/subscriber journey with the Economist
- “We know that by using sfdc that you love and are focused on your customers. But now you need to turn your customers into subscribers. This is what will establish/build the ongoing relationship that is key to your success and to your customers success” * Here (in the script) we need to give specific examples of the benefits having a sub business model. I want to paint a pretty vision of what their business could be like with subscriptions. Later on the “pain” slide, these are all the wonderful things that will “break” if they don’t unify their backend systems
- How do you transform your company around subribers? What changes do you have to make?
- ----- Meeting Notes (9/13/15 13:19) ----- nudge image to right Graze example - launching in US
- ----- Meeting Notes (9/13/15 13:19) ----- words: In the old world – when you were just shipping prpducts it was ok to be siloed but now you have collaborate
- in order to do the things on slide 22, all the systems that touch the customers get affected. Pricing, Packaging, Bundling, Quoting, Ecommerce, Billing, Payments, Collections, Revenue. you’re probably rethinking all your systems right now: billing , payments, quoting, etc. You know there is a shift you know it is effecting each dot this is why all these systems are starting to change
- This the ‘pain’ slide: “This is critical because if you don't integrate these systems If you don't have the right ones, you can't deliver a subscription experience. You can't reap all the benefits of a subscription model. everything we just talked about breaks. Doesn't matter if you can quote for subscriptions if your billing system can't take in process orders. And there's no point to have flexible bundling pricing and product offerings if you can't measure out the subscription sales are affecting your business”
- ----- Meeting Notes (9/13/15 13:19) ----- words: In the old world – when you were just shipping prpducts it was ok to be siloed but now you have collaborate
- ----- Meeting Notes (9/13/15 13:19) ----- words: In the old world – when you were just shipping prpducts it was ok to be siloed but now you have collaborate
- “We know that by using sfdc that you love and are focused on your customers. But now you need to turn your customers into subscribers. This is what will establish/build the ongoing relationship that is key to your success and to your customers success” * Here (in the script) we need to give specific examples of the benefits having a sub business model. I want to paint a pretty vision of what their business could be like with subscriptions. Later on the “pain” slide, these are all the wonderful things that will “break” if they don’t unify their backend systems
- Story gist: Declining Ad revenues + Brand perception problem leads Economist CEO to invest $2M on top of funnel acquisition to increase subscriber revenue bet big on subscriber revenue model Customer data + customer journeys: Economist uses customer data to serve up relevant high-quality content online to pique reader’s interest and guide them towards a customer/subscriber journey with the Economist
- How did KCOM first come to join the subscription economy?
- What internal changes had to be overcome to turn your vision into reality?
- What internal changes had to be overcome to turn your vision into reality?
- ----- Meeting Notes (9/13/15 13:19) ----- words: In the old world – when you were just shipping prpducts it was ok to be siloed but now you have collaborate
- You can feel it in your depatments, your strategy You can see it in your systems This is why a new system RBM is needed
- MORNING INSPIRING – AFTERNOON WHAT YOU NEED TO KNOW MORE SESSIONS – WHAT CAN YOU AFFORD TO MISS ZUORA TRACK – OR HEAR FROM YOUR PEERS STOCKHOLM V LONDON STARTUP BATTLE NETWORKING RECEPTION ----------------- Change Slide to Sponsors/Exhibitors
- In addition, we have an amazing wealth of information on line at the Subscribed Academy
- RBM - is great Project X is great But together they are GAME CHANGING →