Subscribed World Tour: Paris Keynote 2015
Transcript of Subscribed World Tour: Paris Keynote 2015
WELCOME TO THE ERA OF SUBSCRIPTIONS
A WORLD WHERE CUSTOMERS ARE IN CONTROL
OUTCOMES Not Ownership
CUSTOMISATION Not Generalisation
CONSTANT IMPROVEMENT Not Planned Obsolescence
THEIR EXPECTATIONS
HAVE CHANGED
CUSTOMERS ARE NOW SUBSCRIBERS
THEY WANT THE SUBSCRIPTION EXPERIENCE
Beats Tidal iTunes Pandora
45B Likes
Spotify
60M Users $3B value Jay Z Down 20%
A NEW MUSIC EXPERIENCE
“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
A NEW TECHNOLOGY EXPERIENCE
"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
A NEW TECHNOLOGY EXPERIENCE
A NEW MEDIA EXPERIENCE The Guardian
digital news
premium services
multi-channel
free trial
A NEW RETAIL EXPERIENCE
fun-extras convenience health personalization
$1599 All you can fly. No hidden fees.
233% Annual Subscriber Growth
A NEW TRAVEL EXPERIENCE Surf Air
unlimited exclusive effortless fast
A NEW HOME EXPERIENCE Vivint
security intelligence simplification control
2B Online Learners
A NEW EDUCATION EXPERIENCE Lynda.com
video learning
unlimited access
multi-channel
trust
DEVICES
HIGH TECH CLOUD SERVICES EDUCATION CONSUMER GOODS
MEDIA HEALTHCARE COMMUNICATION
EVERY INDUSTRY IS SHIFTING
Disruptors Have Gone IPO
Enterprises Are Embracing Subscriptions
THIS IS A GLOBAL PHENOMENON
80% Of customers are demanding new
consumption models – The Economist 2014
50% Of people in France are
moving away from traditional ownership
- Institut Français D’opinion Publique (IFOP)
80% Of German companies
have dealt with the issue of subscription business
models. - IDG Research Services
$420B Dollars spent on
subscriptions in the US in 2015; up from $215B
in 2000. - Credit Suisse
THE NEW IMPERITAVE: TURN CUSTOMERS INTO SUBSCRIBERS
THIS CHANGES EVERYTHING
Name Email Twitter
TRADITIONAL RECORD
SUBSCRIBER IDENTITY RECORD
Phone Company Facebook
Purchases Products Local Pricing Promotions Adjustments
Usage metrics Add-Ons Customer Moments
Payment history Refund history Lifetime Value Renewal Value Aging balance
START WITH THE SUBSCRIBER IDENTITY
DELIVER A SUBSCRIPTION EXPERIENCE A product is not enough
INNOVATE AND ITERATE PRICING & BUSINESS MODELS
MODERNIZE FINANCE Now it’s about recurring revenue
SCALE EFFORTLESSLY New offerings. New geographies. New Segments.
RELATIONSHIPS, NOT SALES Know Your Subscribers
DELIVER A CONSISTENT EXPERIENCE Anytime, anywhere, any channel.
BUILD A SUBSCRIPTION CULTURE Goodbye to one-hit products
Marketing Product Sales Finance IT Ops
A product
? ?
THIS IS HOW YOU OPERATE TODAY
PUT SUBSCRIBERS AT THE CENTER
Marketing
Finance Sales
IT
Product Ops
Everything you need to power a subscription business, from z to a.
OUR VISION
Pricing & packaging Quoting E-Commerce Billing Payments
& collections Revenue
Relationship Business Management A platform for innovation
OUR TECHNOLOGY
Guillaume Vives Product Agile, Oracle
Jennifer Pileggi General Counsel Con-way, Menlo Logistics
Marc Aronson Engineering Portal, Telenav
Tien Tzuo Founder & CEO Salesforce.com
Marc Diouane Field Operations PTC
Tyler Sloat CFO Netapp, Siebel
Robert Hildenbrand Global Services HP, Oracle
Todd Pearson Customer Success Paypal, Visa
Steve Umphreys People Salesforce, HP
Brent Cromley Technology Zappos
BOARD OF DIRECTORS Peter Fenton Benchmark Capital
Jason Pressman Shasta Ventures
Tim Haley Redpoint Ventures
Mike Volpi Index Ventures
Abhishek Agarwal Vulcan Ventures
Craig Hanson Next World Capital
Tien Tzuo Zuora
OUR PEOPLE
COMMUNICATIONS CONSUMER
IOT MEDIA
OUR CUSTOMERS
The above-referenced trademarks are owned by their respective companies. Nothing in this presentation should be construed to the contrary, or as an approval, endorsement or sponsorship of Zuora or any aspect of this presentation by any of those companies.
TECHNOLOGY
Sydney Auckland San Francisco London Paris
OUR COMMUNITY
THE ACADEMY www.zuora.com/academy
OUR BEST PRACTICES
HELP YOU TURN CUSTOMERS INTO SUBSCRIBERS
GO OUT AND CONTINUE TO CHANGE OUR WORLD
THE WORLD. SUBSCRIBED.
Digital Disruption Across Industries
RBM Powers the Subscription Economy
Marc Diouane
Guillaume Vives
Salesforce, Contexte, Sidetrade Customer Panel
MARC DIOUANE President
OUR WORLD IS CHANGING…
Why are Amazon, Google and Apple the fastest growing brands ?
DIGITAL ACCELERATES BUSINESS MODEL
TRANSFORMATION
• Product companies give away product for service revenues
• Service based businesses sell experiences at varying price points and service levels
• Experience based businesses are selling business models
• Business model companies sell peace of mind
TODAY’S WINNERS ARE DISRUPTING THEIR INDUSTRIES
Products 1970s
Product + Services 1990s
Customer Centric 2000s
Relationship Centric Today
A SHIFT FROM PRODUCTS TO RELATIONSHIPS
What the winners have in common?
Confidential and Proprietary to Zuora, provided under NDA
Telecom Legacy billing platforms cannot support new over-the-top revenue streams
TELECOM
• Traditional telecom • Cloud communications
The Challenge
Rogers Communications Inc. is a diversified Canadian communications and media company engaged in the telecom and media businesses. Rogers needed the ability to easily promote and price products. They needed all products on one tenant and a 360 view of customers in order to price/package/promote accordingly.
The Solution
Rogers is able to leverage the flexibility in Zuora to create multiple promotions and pricing options, and eventually create additional products to support new lines of business. With a single tenant in place and a stable/proven solution, Rogers has the ability to continue adding on other LOBs with very little work.
Rogers Communications Telco Case Study
Confidential and Proprietary to Zuora, provided under NDA
Manufacturing and IoT Connected cars, homes, devices create
massive opportunity in the manufacturing sector
IOT
• Connected Home • Connected Cars • Connected Devices
A New Connected Car Experience
GM’s Opel Announces Plans to Introduce OnStar In Europe Starting In 2015
Learning from the best…
Learn from the best
Subscription emerging as dominant monetization model for media & publishing
MAGAZINE
VIDEO
MUSIC
NEWSPAPER
The Challenge
News International is the UK newspaper arm of News Corp. The publish The Times, The Sunday Times, The Sun, and News Of the World. News needed to consolidate silo-ed legacy systems - simple pricing and packaging changes needed to touch 20+ systems and would take months. The pace of the digital business was not sustainable by their old systems and processes.
The Solution
Z-Business allowed News to adopt a more flexible business model to accommodate their complex, multi-channel bundled solutions by providing a centralized solution with unlimited pricing flexibility. Subscription revenue and retention metrics (MRR, TCV, Churn) was readily available in Z-Business.
News Corp Media Case Study
Confidential and Proprietary to Zuora, provided under NDA
Technology Shift to cloud stack paralleled by shift to subscription business models
TECHNOLOGY
• Software • SaaS • High tech • Cloud infrastructure
Use ERP? Build your own system?
Stitch together niche solutions?
YOUR OPTIONS
A NEW PROSPECT-TO-CASH SYSTEM IS NEEDED
Relationship Business Management
Pricing & packaging Quoting E-Commerce
Billing, Payments, Collctions
Revenue Analytics
Everything you need to power a subscription business, from z to a.
GUILLAUME VIVES SVP, Product
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
CPQ
E-COMMERCE
BILLING
REVENUE
A SINGLE UNIFIED SOLUTION
INSIGHTS
PRICING & PACKAGING • One time, recurring and
usage pricing
• Mix and match charge models
• Promotions and discounts
• Packaging and entitlements
• Multi-currency pricing
ONE-TIME CHARGES In-app purchases
Micro-transactions One time add-ons
RECURRING CHARGES Flat fee Per unit Volume Tiered
Annually, Monthly, etc.
USAGE CHARGES Overage Rollover
Usage rating Thresholds Surcharge
Rated/mediated
Promotions Discounts
Multi-currency Taxes
Bundles Upsells
Downsells
CPQ • Guided selling
• Branded quoting
• Product bundling
• Product and pricing rules
• Lifecycle order management • One click quote-to-invoice
E-COMMERCE • PCI compliant payment
pages
• Dynamic localization
• Built-in credit card validation • Account self-service
• REST and SOAP APIs for multi-channel engagement
BILLING & PAYMENTS • High volume billing
automation
• 200+ currencies, 21+ gateways, 8+ global payment methods
• Invoice personalization + localization
• Integrated tax • Intelligent error handling
REVENUE • Revenue rules engine
• Revenue schedule automation
• Revenue recognition reports
• Revenue journal entries
• Revenue allocation tracking and audit log
ANALYTICS • Bookings, billing, cash,
revenue reports • Subscriber usage and
behavioral analytics
• Smart subscriber segmentation
• Insights-driven engagement triggers
• Intuitive, interactive report builder interface
(New!)
RBM Unifies Your Entire Business Around
Your Subscribers
Pricing & packaging
Quoting
E-Commerce
Billing
Payments & collections
Revenue
Fully Integrated with CRM and ERP
LET’S TAKE A LOOK
Turn by turn navigation
Roadside assistance
Sirius XM
Emergency connect
Traffic pulse
Wifi connectivity
CARSPOT
PRODUCT DEMO