Post on 12-Jan-2015
description
www.curiousrubik.com
Office:+1 646 459 2754
NetSuite Recurring Billing Overview
Changing Business Landscape - Moving to Cloud
Software
Hardware
Storage/ Documents
Platform
Media
Driving different behavior
Pay-as-you go and Usage-based pricing
I want to pay less for
off-peak hours
Pricing package for
my business
I want to pay for usage
Prorate my bill based
on vacation
Perpetual
Subscription
Fixed
Metered
Direct
Multi-tier
Offline
Online
New Requirements - Pricing Flexibility
Customers want flexible pricing & packaging
New Revenue Models
By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models
— Gartner, Building a Strategy for the Subscription Economy, April 2011
Subscription-based businesses Require….
Multiple, complex pricing/billing models11
22
33 Real-time visibility in to business
Flexible, Customer-centric recurring billing platform
Current Solutions in the Market
Too Expensive/cumbersome
Inflexible/ Not Scalable
Not Integrated
Current options are inadequate
Ecommerce
CRM
Billing
Warehouse
Business Cloud - ‘Hairball’
Financials Marketing
Over time: more money, more resources, more integrations
22
11
33
44
55
Support new usage models & complex invoicing
Effectively manage recurring billing & revenue recognition
Provide accurate billing in timely manner
Leverage new metrics to run subscription business
Get a clear visibility in to business
The Result – You can’t…
Risks with inadequate Billing solution
Can’t keep up with Cash Flow due to big DSO
Inaccurate Revenue Recognition – misstating revenue
Incorrect & late Invoicing
No visibility in to MRR, Churn, Renewables, ACV
Lack of customer trust and satisfaction
NetSuite Recurring
Billing Solution
Comprehensive Business Suite:Billing is not a separate process
Billing
© NetSuite Inc. 2012 Confidential
NetSuite Recurring Billing - Supports
Feature Business BenefitCustom pricing and discounting plans
Offer right mix of services to target customers
Automate invoicing Integrate Rev. Rec and update GL automatically
Multiple renewal options Up-Sell and Cross-sell opportunities
Flexible proration Align invoice items with pro-rated charges
Multiple perpetual billing Accurate billing and timely collection of payments
NetSuite Recurring Billing Advantages
Integrates recurring billing with CRM, ERP, eCommerce
Automates recurring and usage based billing processes
Adapts to changing billing needs
Integrates revenue recognition with recurring billing
Quote
Contract
Configurable Billing Terms
Usage Based Invoicing
Financial Reporting
Renewal
Cross-Sell / Up-sell
© NetSuite Inc. 2012 Confidential
NetSuite Recurring Billing Advantages
Centralizes multiple revenue sources
Embeds analytics at multiple touchpoints
Integrated & Real-Time Reporting
© NetSuite Inc. 2012 Confidential
NetSuite – Advanced Billing & Pricing
Supports pricing, discounting, proration and policies
Allows billing frequencies– monthly, quarterly semi-annually, yearly,
biennial, triennial billing
Supports anniversary & day of month billing
Easily configurable billing terms & renewal options
© NetSuite Inc. 2012 Confidential
NetSuite – Usage Based Billing
Supports rate pricing on historical usage
– Trailing periods, custom date range, within a subscription
Provides minimum or maximum threshold charges
Allows multiple ways to record usage
Enables flexible billing
– Flat rate, cumulative tiered rate & price, volume rate & pricing – multiple rating models
© NetSuite Inc. 2012 Confidential
Why NetSuite?
Reference Slides
1. Term must be divisible by billing frequency
2. Term
3. Billing frequency
4. Migrate on renewal– Used to change price plan upon renewal
5. Subscription cancels at– End of billing period
– Immediately
Pricing − Initial discount period− Initial discount amount
Invoice Options− Use custom template− Invoice email timing
Proration− On sale, on termination
Penalty− Early termination
Renewals− Auto− Manual− Create opportunity− Term renewal options
– No term– Same term– New term
Rate Plans
Price Plans
Rate Plans
Ratable Unit– The dimension of the usage data that is to be rated
– Dollars, minutes, texts, trucks, alarms, etc
Charging models– Flat rate
– charge = rate x use
– Cumulative tiered– tier charge = tier rate x tier use– charge = sum of tier charges
– Volume tiered – Highest tier usage selects tier rate– charge = highest tier rate x total usage
Thresholds– Included usage, subtracted before tiering and rating
– Minimum usage charge
– Maximum usage charge
Filtering
– Saved searches can be used to filter usage data prior to rating
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