Measure the health of your subscription business

Chris BrunerProduct Management, Zuora

Jeff BarlamController, LogicMonitor

6 Ways to Measure the Health of Your Subscription Business

Chris BrunerProduct Management, Zuora

Jeff BarlamController, LogicMonitor

emerging trendstraditional responsibilities are changing

page02

Use leading indicators that tell you where you are headed

measure current performance

Target based on deep understanding of subscribers

transform your business

Leverage everything you know about your subscribers

project future performance

why the change?customer relationships drive growth

page03

>20%growth from upsellsThe portion of ACV growth from upsells rises the larger a business becomes, ultimately rising to a quarter of business for companies with more than $25M in revenue

>80%lower acquisition costsThe cost of gaining $1 of new ACV through upsell is a fraction of the cost of gaining the same $1 of ACV by acquiring a new customer

why the change?customer relationships shape trajectory

page04

3 years of MRR growth+ 2% net churn

3 years of MRR growth- 2% net churn

how businesses can respondour viewpoint

page05

understand recurring revenue driversKnow how your business is trending, be able to break down growth into gains from new business and expansion and losses from contraction and churn, and understand how this behavior is changing for each of your cohorts over time.

link the two together to drive growthConnect subscriber identity and subscriber outcomes to gain a world class understanding of where the opportunities in your business lie and how to grow your subscriber relationships.

understand the identity and moments of each subscriberOrganize all of your customer moments (lifecycle events, customer touchpoints, or application behaviors) around a single subscriber identity.

understanding recurring revenue driversa new set of metrics

page06

“Where I’m Headed”Non-GAAP

Accounts ReceivableCashRevenueDeferred Revenue

New customer growth rateAnnual Recurring Revenue (ARR)Changes in ARR (Bookings)ChurnNet RetentionAverage Revenue Per User (ARPU)Growth Efficiency (GEI)

“Where I’ve Been”GAAP

understanding recurring revenue driversan example

page07

What is your business’ health?

What is driving that?

How can we affect it?

understanding business healthguest speaker

page08

Jeff BarlamController,

LogicMonitor

understanding business healthguest speaker

page09

what do you measure and why?

we have been investing in reporting to support thisrecent focus

page010

intuitive way of working with Zuora data new customer-centered data sets

where we are headed nextroadmap

page011

dashboardsVisualize trends and patterns in subscriber behavior in charts and assemble them into dashboards for your teams

calculated valuesDefine custom calculations in reports to support cohort analysis, as of date analysis, and much richer analytics

In reporting and dashboards, seamlessly work across both Zuora data and user data from Insights

integrated analytics

next stepshow to get involved

page012

join la programTake part in early release of our new reporting capabilities.

join design guidance programProvide feedback on designs for our next wave of enhancements.

Check out Zuora Academy for more great info and actionable advice.

All the info you need to build and run an amazing subscription business.

https://www.zuora.com/academy/