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