How I Shifted My Business One Subscription at a Time

Ron Papas SVP Subscription Sales

Ryan Duguid VP of Product Management

The Nine Keys to Subscription Success

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PRICE   ACQUIRE   BILL   COLLECT  

NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  

How I Shifted My Business One Subscription at a Time

Ron Papas SVP Subscription Sales

Agenda  

1.  Informa<ca  Company  Introduc<on  

2.  How  Informa<ca  Uses  Zuora  

3.  Our  Top  Subscrip<on  Essen<als  4.  Lessons  Learned  5.  Wrap  Up  &  QA  

Informa<ca  Company  Intro  •  World’s  #1  provider  of  Data  Integra6on  So8ware  •  Over  5,000  Enterprise  So8ware  and  2,000  Cloud  Customers  •  Cloud  solu6ons  for  Applica6on  integra6on  &  Data  Quality  •  Voted  “  Best  Integra6on  Product”  on  AppExchange  last  5  years  •  Q2  2013  So8ware  Revenue  $91.4M  

•  $80.1M  License  (18%  YoY  growth)  •  $11.3M  Subscrip6on  (70%  YoY  growth)  

How  Informa<ca  Uses  Zuora  

Idea  to  Launch  in  4  Weeks!  

Our  Top  3  Essen<als  

Informa(ca  uses  pricing  and  packaging  as  a  compe((ve  differen(ator.  Usage  based  pricing  allows  us  to  reach  more  partners  &  SMB  customer  by  offering  them  maximum  pricing  flexibility.  

Informa(ca  tradi(onally  sold  enterprise  soCware  to  global  5,000  companies.  With  our  Cloud  offerings,  we  are  now    able  to  target  and    acquire  new  customers  of  all  sizes  and  greatly  broaden  our  market  opportunity.  

1 2 P R I C E ,   A C Q U I R E ,   S C A L E  

Given  the  lower  ASP  for  our  Cloud  offerings  (star(ng  at  $99/month),  we  needed  to  implement  scalable  processes  for  everything  from  Demand  Genera(on,  to  Customer  Acquisi(on  to  Sales  Opera(ons  &  Renewals  

3

Subscrip<on  Essen<al  :  Price  I n f o r m a t i c a P r i c i n g & P a c k a g i n g J o u r n e y

We  ini6ally  launched  with  a  freemium  model      

Free  Data  Loader  

Edi<on  Based  Pricing  Model  

We  introduced  4  Edi6ons  from  $18K  to  $96K/yr    

Informa<ca  Cloud  Express  

Usage  based  pricing  filled  gap  between  FREE  and  $18K/Yr    

ELA’s  

Some  Customers  may  prefer  to  sign  an  ELA  to  get  maximum  flexibility  &  preferred  terms    

Subscrip<on  Essen<al  :  Acquire  W e   a d d e d   >   2 , 0 0 0   n e w   C l o u d   c u s t o m e r s ! !  

Self-­‐Service    

•  Freemium  •  Express  $99+  

       

Direct      

•  Corporate  •  Enterprise  

       

Channel      

•  Sourced  •  Resellers  •  OEM  

Subscrip<on  Essen<al  :  Scale  S c a l a b l e   s y s t e m s   a n d   p r o c e s s e s   n e e d   t o   b e   i m p l e m e n t e d  

u p f r o n t   o r   v e r y   s o o n   a 8 e r   l i 8 o ff  

•  Demand  Gen  Machine  •  Frequent  product  itera<ons  •  Scalable  CRM  System  

•  Self-­‐Service  model  for  Freemium  &  Express  offerings  

•  Customer  Success  Team  •  Separate  Renewals  Team  

Lessons  Learned  

Point  1:  

B E S T   P R A C T I C E S  

Point  2:  

Point  3:  

Everything  is  different  in  a  Cloud/Subscrip6on  business  Product,  Sales,  Marke6ng,  Customer  Success,  Opera6ons…  You  need  to  setup  a  separate  team  to  get  started    Recurring  revenue/Renewals/Customer  Success  are  the  lifeblood  of  the  business    

Don’t  be  afraid  to  experiment!    You  need  to  constantly  innovate  and  iterate  (product  as  well  as  pricing/packaging)    

How I Shifted My Business One Subscription at a Time

Ryan Duguid VP of Product Management

The  Nintex  Journey  

Beginning  

A U T O M A T I N G   E V E R Y D A Y   P R O C E S S E S  

Growing  

Accelera<ng  

Born  out  of  a  system  integrator  that  saw  an  opportunity  Created  clear  value  for  partners  and  customers  Focused  on  growing  channel  

Over  5000  customers  and  nearly  50%  of  the  fortune  500  Supported  by  a  network  of  over  800  partners  in  90  countries  Recognized  as  the  #1  ISV  on  Microso8’s  SharePoint  planorm  

Major  investment  from  TA  Associates  and  Updata  Partners  Rapidly  expanding  sales,  marke6ng  and  R&D  (we’re  hiring!)  Taking  workflow  to  everyone,  everywhere,  all  the  6me  

Living  In  Denial  

Hoping  For  A  Solu<on  

Star<ng  The  Journey  

Choosing  The  Variables  

Working  The  Numbers  

Deba<ng  The  Results  

Launching  The  Service  

How  Nintex  Uses  Zuora  

Background  

P L A T F O R M   O V E R V I E W    

Business  Model  

The  Challenge  

Running  Great  Plains  and  Dynamics  CRM  Licensing  and  billing  built  on  our  own  planorm  Far  too  many  SKUs  

On  premise  enterprise  so8ware  vendor  Majority  partner  driven  through  a  network  of  VARs  Minimal  direct  sales  to  larger  customers  

We  needed  a  billing  planorm  to  manage  a  wide  variety  of  pricing  strategies  across  a  diverse  and  growing  customer  base  and  we  had  a  very  short  6me  frame  to  get  it  in  place.    The  planorm  would  have  to  support  one  6me  charges,  fixed  recurring  charges  and  variable  costs.    We  also  had  to  migrate  our  exis6ng  annuity  contracts.  

Our  Top  3  Essen<als  P R I C E ,   M E A S U R E ,   I T E R A T E  

The  move  to  the  cloud  offers  new  opportuni(es  to  mone(ze  our  offerings.  Nintex  uses  pricing  and  packaging  to  provide  customers  with  greater  flexibility,  and  to  ensure  that  we  can  constantly  deliver  and  mone(ze  new  capabili(es.  

To  ensure  we’re  building  differen(ated  products  at  the  right  price,  Nintex  needs  to  accurately  measure  every  aspect  of  the  business.    Whether  we’re  looking  at  MRR,  product  mix,  or  upsell  opportunity,  we  need  (mely  access  to  accurate  informa(on.  

1 2 Once  you’re  pricing  is  released  and  you  start  to  measure  the  impact,  you’re  going  to  find  areas  that  can  be  fine  tuned.    For  Nintex,  the  ability  to  rapidly  iterate  on  pricing  as  well  as  product  is  cri(cal  to  ensure  that  we  keep  our  customers  happy  and  grow  our  business.  

3

Subscrip<on  Essen<al  :  Price  N i n t e x   P r i c i n g   &   P a c k i n g   J o u r n e y  

We  are  launching  with  a  per  user  pricing  model    

A  new  way  to  pay  

Buy  what  you  need  

The  Nintex  Store  provides  a  new  way  of  mone6zing  innova6on    

Trial  is  cri<cal  30/60/90  day  plan    

Hybrid  support  Op6ons  for  our  customers  who  live  in  a  hybrid  world    

Subscrip<on  Essen<al  :  Measure  W A T C H I N G   O V E R   O U R   B U S I N E S S  

Today:    Lots  of  effort  to  track  the  numbers  and  hard  to  spot  issues.    No  visibility  in  to  how  

our  products  get  used.  

Tomorrow:  Real  <me  insights  in  to  MRR,  upsell  opportuni<es,  and  churn.    Constant  feedback  on  how  customers  

are  using  our  products.  

Subscrip<on  Essen<al  :  Iterate  G E T T I N G   I T   R I G H T   W I T H   T I M E  

Pricing  v1.0   Pricing  v2.0   Pricing  v3.0  

Lessons  Learned  

Start  early  

B E S T   P R A C T I C E S  

Seek  input  

Ship  it  

The  longer  you  put  it  off,  the  more  painful  it  gets  Get  buy  in  from  across  your  business    

Do  your  homework  and  connect  with  others  Recognize  that  only  you  know  what’s  right  for  your  business    

Gerng  it  done  is  more  important  than  gerng  it  perfect  Release,  experiment,  measure,  iterate  

Q&A  

Thank  You!