leverage zuora and salesforce to launch and grow a subscription business
TRANSCRIPT
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Leverage Zuora and Salesforce to Launch and Grow a Subscription Business
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Agenda
What is the Subscription Economy?
HomeAway story
Q&A
Thank you for joining today!
How do Zuora & Salesforce work together?
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Commerce Billing FinanceSubscription Subscription Subscription
The Leader in Commerce, Billing and Finance solutions for the Subscription Economy
3
500+ customers $82M funding Benchmark Capital
Marc Benioff
Redpoint Ventures
Index Ventures
Enterprise LeadershipTien Tzuo, CEO/Founder
Marc Aronson, VP Engineering
Cheng Zuo, CTO/Co-Founder
Brian Bell, CMO
Todd Pearson, SVP Cust. Success
Zuora Confidential – Not for Distribution Beyond Intended Recipient
A bit of background…
Zuora Confidential – Not for Distribution Beyond Intended Recipient
What is the
5
1999 Today
Subscription Economy?
BUY NOW SUBSCRIBE
Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Move from Products to Services
By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models.
Technology Transportation Retail Music
Video Voice? Legal
A
Healthcare
Zuora Confidential – Not for Distribution Beyond Intended Recipient
A Great Model for Customers and Businesses
MORE Flexibility MORE Innovation BETTER Customer Service
Consumers
Access Anywhere, Instant Upgrades
Businesses
Ongoing Relationship
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Businesses In The Subscription Economy Are Focused On Relationships
Product Relationships
BUY NOW SUBSCRIBE
Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Subscription Economy Requires a Completely Different Approach to Building Businesses
Sell Units
Product Economy Subscription Economy
Monetizing Customer Relationships
Why? Customer in the middle.
Forced to Pick a Customer Segment
Price Per Unit
One-Time Orders
Simple Financial Metrics
Pay-as-you-Go Pricing Plans
Why? Flexibility, Editions, Try before Buy.
Multiple Orders Over a Lifetime
Why? Add-ons, Upgrades, Renewals.
Sell to Consumers & Businesses
Why? Support B2C, B2B and B2Any.
Complex, Interrelated Bookings, Billings, & Revenue
Why? All metrics are connected.
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Problem: Today’s Systems Don’t Support the Subscription Business Model
Price x Unit No concept for monthly
pay-as-you-pricing
SKU Based CatalogNot built to support
subscription rate plans
Singular Orders No concept for add-ons, upgrades, and renewals,
Low VolumeNot built for B2B & B2C, credit card & invoice transactions
Backwards LookingLooks at revenue for last period, not forward recurring revenues
Zuora Confidential – Not for Distribution Beyond Intended Recipient
How does Zuora help?
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Quotes Commerce Billing Finance
Rating, Invoicing, Advanced Billing, Payments & Payment
Operations, Taxation
Subscription Management Platform
Subscription Orders, Amendments, Renewals, Hosted Commerce Pages
Accounting Close, Audit Controls, Summary Journal Entries, Deferred Revenue
PlatformAccount ManagementSubscription Catalog Reporting & Metrics
APIs Notifications & Callouts Data Export & Import
Administration (Users & Roles)Customization (Custom Fields) Multi-Currency & Locale
PCI Level 1 Compliance SAS 70 Type II
Pricing, Quotes, Add-Ons, Renewals
inside Salesforce
AppExchange Certified Managed Packaged
360
Ecosystem
Payment Gateways Accounting/GLCRM Systems
Helping Companies Grow, Flow and Know
Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Complete Picture for Salesforce Customers
Sales Force AutomationCustomer Service
Accounting
LEA
D
CA
SH
General LedgerSupply Chain
Customer Management
Pricing & QuotingSubscriptions & OrdersAdd-Ons & Renewals
Billing & PaymentsUsage & Rating
Reporting & Analytics
Subscription Commerce, Billing, Payments
Zuora Confidential – Not for Distribution Beyond Intended Recipient
We Make Salesforce Subscription Smart
… for Sales Reps
Product CatalogCreate QuotesProcess change ordersProcess add-onsProcess renewalsTake credit cards ordersUsage in Zuora Metrics
Answer billing inquiresCollectionInvoice history & agingProcess change ordersProcess add-onsProcess renewals
… for CSRs & Finance
… for Customer & Partner Portals
Self serviceView price plansTake orders
… everything gets Chatter enabled
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Quotes & Subscription Management in Salesforce
15
Quotes for Initial & Add-on Orders Sales Reps can sign up initial customers and create up-sell and cross-sell orders
Quotes for Change Orders Make subscription updates and upgrades
Quote Presentation Automatically send quotes to Customers or Z-Billing in the back office
Customer Value DashboardsGet to the metrics that matter: Monthly Recurring Revenue, Renewal Rate, and Total Contract Value
Complete Subscription HistoryGive reps and agents full customer visibility
Invoice Aging ReportsSee 30-60-90 day invoice stats at a glance
Quotes for Renewal OrdersRenew subscriptions
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Salesforce’s Flat Product Catalog Cannot Handle Subscription Complexities
Salesforce Quotes uses the “One SKU, One Price” Salesforce Product Catalog – which simply doesn’t work for Subscriptions.
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Zuora’s Product Catalog is Designed for Subscription Complexity Multi-Layered, Multi-Currency
Perry TancrediSr. Director of Product Management
Zuora helps us create and manage any new product and pricing model.
Create one-time, recurring, usage charges
Setup different product editions, durations, and pricing tiers
Manage product discounts and promotions
Track usage, overages, and included units
Use Hundreds of Different Currencies
Zuora Confidential – Not for Distribution Beyond Intended Recipient
HomeAway Success Story
Zuora Confidential – Not for Distribution Beyond Intended Recipient
About HomeAway
WHAT WE ARE:Second homes available for travelers to rent on vacation from a homeowner or property manager.
A Great Value! Rent a whole house for half the cost of a hotel.
Perfect for family and groups.
WHAT WE ARE NOT:Timeshares
House Swaps
All Luxury Properties
Primary Residences
Founded in 2005 with six employees now more than 1,200 worldwide, with 600 employees in Austin. More than 711,000 listings in 171 countries/13 languages.
20+ worldwide vacation rental sites.
Dedicated to Trust & Security authentic traveler reviews, HomeAway Carefree Rental Guarantee protects up to $10,000 in rental fees
Zuora Confidential – Not for Distribution Beyond Intended RecipientSlide 20 − Zuora Confidential, not for distribution beyond intended recipient
Zuora & Salesforce Partner at HomeAway
BeforeBefore
Background
AfterAfter
Zuora and Salesforce fueled HomeAways aggressive growth by
acquisition by enabling monetization of HomeAway’s suite of software
providers for property managers.
The integration between Salesforce and Zuora allowed us
to bring order to a messy situation and regain control over
our quote to cash process.Jim Bunch, HomeAway
Acquired 4 software companies, each with a different billing application.
No control over quoting, discounting.
No integration to Salesforce.
No 360 view!
All 4 acquisitions standardized on Salesforce and Zuora!
Control over one standard product catalog
Easy and simple products = happy customers.
On-premise model sunsetted due to growth of subscription model
True 360 view
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Q&A