Post on 25-Jan-2017
Products 1970s
Product + Services 1990s
Customer Centric 2000s
Relationship Centric Today
A SHIFT FROM PRODUCTS TO RELATIONSHIPS
PRICING Unit Sales Value pricing
MARKETING Branding Experience
SALES Selling products Selling outcomes
FINANCE Unit margins Customer lifetime value
CULTURE Hit products Deep relationships
THIS CHANGES EVERYTHING
Advent Software Servcorp Ltd ServiceChannel Concur Technologies Q2E Banking Axial Inc.
Technology IBM Intuit Inc. Zendesk Autodesk SendGrid Mulesoft
Okta Docusign Yahoo! Citrix Linkedin TripAdvisor
Box Trulia Zillow Xactly Marketo PTC
Telecom HP Cloud Dell Inc. Informatica CollabNet Symantec SAGE
BlueJeans Qualcomm Rogers Spark NZ Sensis Ooyala
Xplornet Fuzebox Blackberry Motorola Five9 Polycom
Tata Sensis AT&T Eclipse SkyRiver DNS
CUSTOMERS IN EVERY INDUSTRY
Internet of Things B2C Ford Qualcomm Thermo Fischer EDF Vivint, Inc Polycom Schneider Elec.
GM PubNub Neopost SA Google Nest NCR General Electric Lowe’s
American Express AXA Intuit Deloitte Avalara Dorsey Wright Stansberry
Touring Car Schweiz uKnow SnagAJob.com Surf Air News UK Headspace
Local Corp. Memeo Inc. MLS Listings HP MagCloud Kaplan Givezooks!
BetterCloud Box American Express Bandwidth.com Engie (GDF Suez SA) Telstra
Media Education Healthcare Fairfax Media Primedia AllProperty Media Whitepages.com Yellow Media Inc YP.com
Thomas Publishing Time Inc (UK) Ustream The Guardian HBO Nordics AT&T Adworks
Reed Business Info News UK Dow J/News Corp Liberation IPC Media BitGravity
Pearson Sally Ride Science Safari Netchemia Lynda.com Mindflash
Kaplan Learning.com Focus-N-Fly Inc Hobsons Edmentum EMyth
Transparent Healthcare Perfect Patients Voyant Health Sycle LifeTechnologies Availity
Medrio Modernizing Medicine Illumina GoodMouth CareCloud Carena
Financial Services
THE PROBLEM Existing Systems Were Built For Products and One-time Transactions,
Not Subscribers and Long-term Relationships
Multiple Systems | Manual Processes | Rigid Technology | Product-Centric
A Product
? ?
Quoting Fulfillment
Ecommerce
Revenue Recognition
Financials
ERP
SCM
Inventory Product Catalogue
Collections Invoicing
INTRODUCING ZUORA A prospect-to-cash solution for relationship-centric enterprises
SUBSCRIBER MANAGEMENT
Cross-sell, upsell renewals, 360 sync,
self service
PRICING & PACKAGING
Pricing, Bundling, Entitlements
QUOTING
Configuration, Guided-Selling, Rules
Engine
BILLING
Rating, Invoicing,
Taxation
PAYMENTS
Offline & Online
Payments, Credits, Adjustments
Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace.
Platform
REVENUE
Revenue Recognition,
Accounting Close, GL Integration
REPORTING & ANALYTICS
Report builder, Dashboards,
Segmentation, Predictive
SUBSCRIBER IDENTITY
Payment Gateways
Taxation
Mediation
Provisioning
COMMERCE BILLING FINANCE
RELATIONSHIP BUSINESS MANAGEMENT
Z-Business Ecosystem
CRM
Web APIs
Tailor pricing to subscriber segments or individual subscribers
Combine one-time, recurring and usage pricing models
Rapidly create and iterate on price promotions
Easily manage multi-currency pricing
Link pricing and feature entitlements to streamline billing and provisioning
Rapidly launch and test new pricing
1. A pricing catalog purpose built for choice and rapid iteration
2. Designed for multi-channel subscriber management
Native salesforce.com CPQ application
Guided selling to streamline your assisted sales processes Subscriber self-service account management
Visibility into key subscriber metrics across all channels
Partner price lists and partner sales
Acquire and manage customers on multiple channels
3. Automates recurring billing and collections Automated billing and personalized invoice presentation/delivery
Automated electronic payment processing
Automated tax and currency rounding calculations
Invoice consolidation for hierarchical account relationships
Triggers for automated provisioning and deprovisioning
Ability to trigger billing based on external events
Scale and streamline back office operations
4. Designed to integrated with your finance application Chart of account alignment between Zuora and your financial system
Roll up of financial transactions using multiple segmentation rules Automatic deferred revenue calculations
Trial balance calculations for billings, cash and revenue
Accounting lock-down to maintain auditability and compliance
Scale and streamline back office operations
5. Delivering deep insights into business growth and service usage
Report on billings, bookings, AR and revenue growth
Measure MRR, ARR, ACV and churn across product lines, geos, etc
Easily access trends and patterns of use across your product
An analytics-driven approach to identify cross-sell/upsell candidates for new products
Measure usage
and adoption
Zuora manages the downstream complexity in billing and finance
Order #1
Initial Order
Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice
• Billing schedules divide orders into basic monthly or annual payments
• CRM and quoting tools don’t handle all types of quoting events: upsell, downgrade, add-ons, renewals, cancellations
• Subscription changes complicate system integrations even more
Traditional Systems Handle Basic Invoices…
How Traditional Billing Systems Handle Subscriptions
Order #1
Initial Order
Order #2
Upgrade to “Gold” Plan
Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice
Order #3 Add Another Service
Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice
Mo. 4 Invoice
• Most billing & ERP system are order-centric model • No concept of a holistic subscription, only billing schedules • Subscription events: upsell, downgrade, add-ons, renewals, cancellations
produce many unrelated orders and misaligned invoices • No visibility into total customer lifecycle over time
Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice
…Zuora simplifies process and customer relationships
• Single subscription which records all changes (versions) • Automatic proration, charge alignment and co-terminus for easy
renewals • Simple invoices for the customer
Subscription
Subscription Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice
Add Another Service (v3)
Upgrade to “Gold” Plan (v2)
FINANCE
Manage Recurring Revenue
REVENUE RECOGNITION RULES
AUTOMATIC REVENUE DISTRIBUTION
MANUAL REVENUE DISTRIBUTION
AUTOMATIC ADJUSTMENT REDISTRIBUTION REVENUE WORKBENCH REVENUE REPORTS
Subscription-aware Data Model
Align with Financial Systems ACCOUNTING SYSTEM
INTEGRTION
ACCOUNTING PERIODS CHART OF ACCOUNTS ACCOUNTING CLOSE REPORTS
AR & REVENUE JOURNAL ENTRIES
AUDIT TRAIL & ACCOUNTING LOCKDOWN
Monthly to Quarterly Example
01/01
Sales & Sales Ops
Product Mgmt
Finance
Bill & Pay Operations
New Order on 01/01 12 Month Term ends 12/31
Bronze Monthly Plan: $200/month
Bill: $200
Bill: $200
Bill: $200
Bill: $200
Bill: $200
ER: $200 DR: $0
ER: $400 DR: $0
ER: $600 DR: $0
ER: $800 DR: $0
ER: $1000 DR: $0
Amendment on 06/15 Coterminous ends 12/31
Bronze Quarterly Plan: $300/quarter
Bill: $250 ($300 - $100 Prorated Credit + $50
Prorated Charge)
ER: $1250 DR: $200
ER: $1350 DR: $100
ER: $1450 DR: $0
ER: $1550 DR: $200
ER: $1650 DR: $100
02/01 03/01 04/01 05/01 06/01
06/15
07/01 08/01 09/01 10/01 11/01 12/01
ER: $1750 DR: $0
01/01
Renewal 12 Months
Bronze Quarterly
Plan
Bill: $300
ER: $100 DR: $200
ER: $1150 DR: $0
Bill: $300 Bill: $200
Adding Users Example
01/01
Sales & Sales Ops
Product Mgmt
Finance
Bill & Pay Operations
New Order: 10 Users on 01/01 12 Month Term ends 12/31
Professional Plan: $120/user/year
Bill: $1200
ER: $100 DR: $1100
ER: $200 DR: $1000
ER: $300 DR: $900
ER: $400 DR: $800
ER: $500 DR: $700
Amendment: 20 Users on 06/15 Coterminous ends 12/31
Professional Plan: $/user/year
Bill: $650 ($1300 Prorated Charge - $650 Prorated Credit)
ER: $850 DR: $1000
ER: $1050 DR: $800
ER: $1250 DR: $600
ER: $1450 DR: $400
ER: $1650 DR: $200
02/01 03/01 04/01 05/01 06/01
06/15
07/01 08/01 09/01 10/01 11/01 12/01
ER: $1850 DR: $0
01/01
Renewal 12 Months
Gold Annual
Plan
Bill: $2400
ER: $200 DR: $2200
ER: $650 DR: $1200
Monthly to Annual Example
01/01
Sales & Sales Ops
Product Mgmt
Finance
Bill & Pay Operations
New Order on 01/01 12 Month Term ends 12/31
Bronze Monthly Plan: $200/month
Bill & Collect $200
Bill & Collect $200
Bill & Collect $200
Bill & Collect $200
Bill & Collect $200
ER: $200 DR: $0
ER: $400 DR: $0
ER: $600 DR: $0
ER: $800 DR: $0
ER: $1000 DR: $0
Amendment on 06/15 Coterminous ends 12/31
Bronze Annual Plan: $1200/year
Bill & Collect: $550 ($650 Prorated - $100 Credit)
ER: $1250 DR: $500
ER: $1350 DR: $400
ER: $1450 DR: $300
ER: $1550 DR: $200
ER: $1650 DR: $100
02/01 03/01 04/01 05/01 06/01
06/15
07/01 08/01 09/01 10/01 11/01 12/01
Bill & Collect $200
ER: $1750 DR: $0
01/01
Renewal 12 Months
Bronze Annual
Plan
Bill & Collect: $1200
ER: $100 DR: $1100
ER: $1150 DR: $600