TURNING CUSTOMERS

INTO SUBSCRIBERS

Tyler Sloat
CFO, Zuora
 WE NOW LIVE IN A
SUBSCRIPTION ECONOMY
#shifthappens
 A GLOBAL PHENOMENON

80% 50% 80% $420B

Of customersare Of people in Franceare
demanding new movingaway from
consumption models traditional ownership
– TheEconomist 2014 - Institut FrançaisD’opinion
Publique(IFOP)
Of German companies Spent on subscriptions
have dealt withthe issue in the US in 2015; up
of subscription from $215B in2000 .
businessmodels. - Credit Suisse
- IDGResearchServices
 OUTCOMES
Not Ownership

THEWAYPEOPLE
BUYHASCHANGED CUSTOMIZATION
Not Generalization
FOR GOOD
We have new expectations CONSTANT IMPROVEMENT
Not Planned Obsolescence
 EVERYINDUSTRY ISSHIFTING
Leaders are delivering anew experience with a newkind of businessmodel

CONSUMER
HIGH TECH EDUCATION CLOUD SERVICES
GOODS

HEALTHCARE IOT MEDIA COMMUNICATION

 WE (Customers) WANTTHE
SUBSCRIPTION EXPERIENCE

Ongoing Memorable On-demand Anywhere, Personalized

Value Experiences Fulfillment Real-time Service
 WE CALLTHIS NEW ERA
THE SUBSRIPTION ECONOMY

At the heart of the SubscriptionEconomy isthe

ideathat customersarehappier subscribingto
the outcomesthey want, when they want them,
rather than purchasingaproduct with the
burdenof ownership
WHATDOES THISMEAN FOR
COMPANIES
A NEW WAY OF THINKING

product subscriber

vs.

channels channels

customer product + service

 THISCHANGES EVERYTHING

PRICING Unit Sales Value pricing

MARKETING Branding Experience

SALES Selling products Selling outcomes

FINANCE Unit margins Customer lifetimevalue

CULTURE Hit products
Deep relationships
The 9 Keys
P A D R E
Pipeline Acquire Deploy Run Expand
Web DemandGen. Self Service TechOps Upsell
Social Field Enablement Squads Support Cross- sell
AR/PR BusinessDev. Partners Renewals
Events Emerging Methodology Account Mgmt.
ProductsLaunches Enterprise Adoption
International Training
SalesEng.

P P M
Product People Money
PM/PMM Recruiting Finance
R&D Onboarding Operations
Docs Training Legal
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