Mary Ransom SVP, Consumer Products

Mark Gervase Sr. Product Marketing Manager

Accelerating Growth For High Performance Companies

FROM INCUBATION TO REALITY Business Model Innovation Within An Enterprise

FROM INCUBATION TO REALITY Business Model Innovation Within An Enterprise

Mary Ransom SVP, Consumer Products

The Nine Keys to Subscription Success

$

PRICE   ACQUIRE   BILL   COLLECT  

NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  

Agenda  

1.   Borderfree  Introduc>on  2.   Building  &  Launching  BoxHop  3.   What  Comes  Next  

4.   QA  

Introduc>on  to  Borderfree  W h o   w e   a r e   &   W h a t   w e   d o  

•  Privately  held;  190  employees  in  NYC  (HQ),  Tel  Aviv  (R&D),  Toronto,  Shanghai  •  Our  soIware  and  services  plaKorm  extends  retailers’  online  capabiliOes  globally  •  Sell  to100+  countries  and  transact  in  60+  currencies  

•  InternaOonal  Checkout  •  Fraud/Risk  Management  •  Customer  Care  Support  

Commerce  

•  Carrier  Management  •  Export  Compliance    •  Omni-­‐channel  Support  

LogisOcs  

•  MarkeOng  Strategies  •  Partnership  Sourcing  •  Global  Marketplaces  

MarkeOng  

•  Consumer  Insights  •  Merchandising  Strategies  •  Global  Shopping  Trends  

Insights  

Introduc>on  to  Borderfree  O u r   C u s t o m e r s :   R e t a i l e r s   &   S h o p p e r s  

Evolving  from  B2B  to  B2C  T h e   B u s i n e s s   C a s e   f o r   B o x H o p  

•  Shipping  Costs  too  Much!  •  Want  to  order  from  U.S.  sites  •  Want  to  place  orders  from  non-­‐

Borderfree  merchants  

Provide  internaOonal  consumers  with  a  US  shipping  address  to  buy  directly  from  US  retailers  

CUSTOMER  FEEDBACK  

BUSINESS  IMPLICATION  

•  Need  to  lower  our  cost  basis  •  Need  a  new  B2C  revenue  model  •  Need  a  new  plaKorm  to  support  new  

business  &  expand  TAM  

RESULT:  BOXHOP  IS  BORN  

The  9  Subscrip>on  Essen>als  H o w T h e y S h a p e d B o x H o p

$

PRICE   ACQUIRE   BILL   COLLECT  

NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  

Pricing  &  Packages  N e w   S e r v i c e s   &   R e v e n u e   S t r e a m s  

1

REVENUE  &  RISK  DIVERSIFICATION  

•  Borderfree  Profit  Streams:  •  Merchant  Service  Fees  •  Consumer  FX  Fees  

•  BoxHop  Profit  Streams:  •  Subscrip>on  Fees  •  Shipping  Fees  

•  Usage  based  

Customer  Acquisi>on  P a r t n e r s h i p s   &   P r o m o s  

2

Partnerships  drive  value  for  all:  •  Merchant:  sales  &  loyalty  •  Consumer:  valuable  discount  •  BoxHop:  ‘FREE’  subscribers!  •  Borderfree:  Consumer  Profiles  

Recurring  Billing  S t o r i n g   &   A c c e s s i n g   C o n s u m e r   P r o fi l e s  

•  Borderfree  Consumer  Profiles    

•  BoxHop  as  a  Shipping  OpOon  

3

 •  100%  TransacOonal  •  No  SubscripOon  Fees  •  No  Consumer  or  Payment  Profiles  

   

•  SubscripOon  &  TransacOonal  •  Upgrades,  add-­‐ons,  renewals  •  All  Users  have  Payment  Profiles  

Future = Hybrid

Preven>ng  Failed  Payments  •  Account  creaOon  requires  a  valid  CC  •  Email  30  days  before  card  expires  •  Payments  updated  in  customer  portal  

Managing  Failed  Payments  •  AutomaOc  retry  logic  configured  •  Email(s)  triggered  to  consumers  •  Parcels  held  pending  payment  •  Late  penalty  fees  assessed  

Consumer  Collec>ons  T h e   ‘ C a s h ’   i n   C a s h   F l o w  

4

Rela>onship  Management  V i s i b i l i t y   &   S e l f -­‐ S e r v i c e  

5

•  Zuora  +  Salesforce  =  full  customer  account  visibility  and  easy  administraOon  for  customer  care  

 •  Customer  portal  allows  easy  profile,  

payment  &  subscripOon  updates  •  Payment  details  hosted  by  Zuora  •  FAQs  &  web-­‐to-­‐case  support  

powered  by  Force.com  

•  OperaOonal  issues  trigger  case  creaOon  &  email  communicaOons  

Finance  &  Accoun>ng  K e e p i n g   t h e   B e a n -­‐ C o u n t e r s   C a l m  

PROJECT  REQUIREMENTS:  •  Manage  Revenue  RecogniOon  •  Refunds  Administered  in  Salesforce  •  Easy  CyberSource  IntegraOon  •  Connects  to  our  Intacct  GL  •  Financial  Controls  SaOsfy  Auditors  •  PCI  Level  1  Compliance  •  MulO-­‐Currency  Pricing  (P2)  •  Supports  MulOple  Gateways  (P2)  

6

BUSINESS  GOAL:  SaOsfy  Finance  without  hindering  innovaOon,  ceding  control  or  delaying  launch  

Measure  &  Analyze  C o n s u m e r s ,   O p e r a O o n s ,   T r e n d s …  

Subscribers          

•  GROWTH  •  USAGE  •  SPEND  •  CHURN  •  RENEWAL  

Opera>ons          

•  BILLINGS  •  COLLECTIONS  •  PRODUCTIVITY  •  ERROR  RATES  •  OPEN  CASES  

Basket  A^ributes          

•  MERCHANTS  •  PRODUCTS    •  BRANDS  •  DIMENSIONS  •  WEIGHT  

7

Systems  &  Scale  S o l u O o n   A p p r o a c h   –   K e y   D r i v e r s  

8

•  Speed  to  Market  –  launch  and  stabilize  before  holiday  season  

•  Outsource  Ini>al  Build  –  partnered  with  Slalom  ConsulOng  to  architect  &  build  the  MMP  

•  Enterprise-­‐level  Compliance  –  PCI,  accounOng/audit,  customer  screening,  import/export  restricOons    

•  Nimble  but  Scalable  &  Configurable  Plaaorm  

•  Low  Organiza>onal  Burden  –  ability  to  migrate  and  manage  the  plaKorm  in-­‐house  with  limited  dedicated  labor  post-­‐launch  

•  Core  plaKorm  and  data  repository  for  customer  and  parcel  management,  order  workflow  &  customer  care  

•  Hosted  checkout;  subscripOon  billing  &  collecOons;  A/R  sub  ledger  

•  Development  plaKorm  supporOng  the  Customer  portal  

•  Duty  and  tax  calculaOon;  import/export  restricOons  management;  shipping  carrier  rates  and  rules  

Systems  &  Scale  (cont’d)  P r i m a r y   S o l u O o n   C o m p o n e n t s  

8

Customer  Registers  &  Orders  Goods  

Parcels  Received  &  Stored  

Customer  Configures  Order  

Order  Processed  &  Shipped  

Systems  &  Scale  (cont’d)  B u s i n e s s   P r o c e s s   F l o w  

8

Business  Flows  

Future  Enhancements  W h a t   C o m e s   N e x t  

CUSTOMER  EXPERIENCE  •  Loyalty  program  •  Translated  interfaces  •  Mobile  checkout  &  tracking  •  DDP  shipping  opOon  •  InternaOonal  returns  support  

MARKETING  &  GROWTH  •  Consolidated  merchant  

reporOng  •  IntegraOon  into  the  

Borderfree  checkout  •  AddiOonal  payment  gateways  •  FX  support  

9

Q&A  

Thank  You!  

Accelerating Growth For High Performance Companies

Mark Gervase Sr. Product Marketing Manager

mgervase@intacct.com @markgervase

The Nine Keys to Subscription Success

$

PRICE   ACQUIRE   BILL   COLLECT  

NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  

Growth Companies Rely on Intacct 6,000+  Companies    

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Q&A  

Thank  You!