Learn best practices for end-to-end subscription based Quote-to-Cash and how to optimize both your front-end sales and back-end operational processes like billing, invoicing and payments.

1. Scaling Sales & Billing Operations
In the Subscription Economy
Guillaume Vives
SVP, Products, Zuora

2. In The Subscription Economy,
Focus Is On Relationships
Product Relationships
BUY NOW SUBSCRIBE

3. Quo$ng
Ordering
Fulfillment/
Shipping
Invoicing
Payment/
Collec$on
Accoun$ng
The Quote to Cash Process in
the Subscription Economy
Traditional one-time charge economy
What is different with the Subscription Economy?
Quote Order Subscription
Revenue event
Revenue event
Revenue event
Invoice Payment
Invoice Payment
Invoice Payment
Revenue RecognitionUpsell
Upsell
Upsell
Order
Order
Order
Provisioning

4. Quote to Cash to Accounting in
the Subscription Economy
Quote Order Subscription
Revenue event
Revenue event
Revenue event
Invoice Payment
Invoice Payment
Invoice Payment
Revenue RecognitionUpsell
Upsell
Upsell
Order
Order
Order
Provisioning
Sales Ops
(aka Front End)
Billing Ops & Revenue Ops
(aka Back End)

5. Two Sides of the Same Coin
• Quoting
• Ordering
• Sales Commission
• Subscription Management
• Provisioning
• Upsells
• Invoicing
• Collection/Payment
• Churn Prevention
• Revenue Recognition
Subscription
Sales
Operations
Billing & Revenue
Operations

6. Two Sides of the Same Coin
• Quoting
• Ordering
• Sales Commission
• Subscription Management
• Provisioning
• Upsells
Sales
Operations

7. Sales Operations: The Fundamental Changes
Your Sales Organization
Reducing cost of sales1
2 Continuous Revenue Increase of Install Base
3 Optimizing Sales Team for Max Efficiency

8. Sales Operations:
Sales Compensation
COO
How do you deal with
churn or downsell?
What are your business
objectives?
Market Capture?
ACV on bookings or collections is a
good base for the compensation
plan.
Long-term success &
comittment?
TCV, upsells, and renewals
are good elements of a
compensation plan.
How do you pay your
sales reps?
Dimensions Available:
ACV
TCV
Contracted Ramp
Upsell
Usage / Overage

9. Marketing
Automation
Freemium
Website
Big
Data
Trend & Pattern
of Usage
Provisioning
Entitlement
Online Sign-up &
Account Mngmnt
CRM
CPQ
Sales Operations:
Systems and Automation
Marke$ng
Usage
Analysis
Provisioning
Quo$ng
automa$on

10. Sales Operations:
The Metrics That Matter
• Cost of Sales Ops/Sales
– From 1/2 to 1/12
• Operational Metrics
– Web visits to hand raise
– Hand raise to opportunity
(Freemium?)
– Qualified Freemium users
– Opportunity to close
– Upsell, Add-ons: MRR growth per
customer
– ACV; TCV; Contracted Ramp
– Down-sell and Churn
Awareness to Hand
Raises
Hand Raise to
Opportunity
Qualified
Closed
New Customers
MRR Growth Via
Upsells & Add-Ons

11. Two Sides of the Same Coin
• Quoting
• Ordering
• Sales Commission
• Subscription Management
• Provisioning
• Upsells
• Invoicing
• Collection/Payment
• Churn Prevention
• Revenue Recognition
Subscription
Sales
Operations
Billing & Revenue
Operations

12. Two Sides of the Same Coin
• Invoicing
• Collection/Payment
• Churn Prevention
• Revenue Recognition
Billing & Revenue
Operations

13. Billing & Revenue Operations:
Billing Organization
• Billing processes
• Invoice complexity
• Payments
Scaling and
Automation
This is a mindset change
• Churn prevention (with
Customer Care)
• Upsell opportunity (with Sales)
Build Customer
Relationships
Understanding the subscription is
critical to managing a complex
Revenue Recognition process.
Managing a
Complex Process

14. Billing & Revenue Operations:
The Metrics That Matter
Revenue
Recognition
Deferred revenue balance
MRR Growth
DSO / Collections $ of Billing
Operations
per $ of MRR
Time to Bill Churn
Prevention
=
Customer
Satisfaction

15. Sales & Billing Operations
Need to Be Integrated/Automated to Be Successful
ü Transactions growth
ü Customer interactions
ü Sales channels
ü Cost of sales
ü Introductory price point
ü Cost of operations

16. Lessons From Our Customers
1. Consider putting Sales Ops and Billing Ops together
2. Remember that Commerce is about relationships so interactions
are important
3. Commerce is multi-channel
4. It needs to be designed as an end-to-end process around the
subscription
5. Without automation, there is no scale

17. The COO Perspective
Meet The Panelists
Brandwatch
Bryan Tookey, COO
Wiora Software
Voker Wiora, Founder
Web Interpret
Benjamin Cohen, Co-Founder
Vlex
Angel Faus, CTO
Zuora
Guillaume Vives , SVP Product Management
@gyvives
Global Collect
Mashfiq Khan, International
Business Development Manager

18. Panel – Share Your Input
1. Renewals – How do you do it today? Key
challenges? Lessons Learned?
2. Sales Ops and Billing Ops Collaboration – Key
opportunities and challenges
3. (Bonus) Sales compensation – What works best:
model focused on market capture or long term
revenue optimization

19. END