Subscribed 2017: The 6 Engines Of The Zuora Platform

6 Engines of Zuora

Gregory Gamp

Senior Sales Engineer

The modern business is centered around

ongoing customer relationships

OLD WORLDNEW

WORLD

events events

events events

events events

OLD WORLD ORDER-TO-CASH Product-centric, siloed, serial, linear

CRM ERPquote order fulfill invoice collect recognize

A Product

? ?

NEW WORLD ORDER-TO-CASH Subscriber-centric, event-driven, dynamic, interconnected

quote

renew

order

provision

invoice

collect

measure

recognize

CRM ERP

Businesses needs a single

Subscription Management Hub for their dynamic order-

to-cash process

quote

renew

order

provision

invoice

collect

measure

recognize

CRM ERPSubscription

Management Hub

AR /

Collections

E-commerce

General

Ledger

Revenue

Recognition

Companies choose Zuora as the hub for their dynamic

order-to-cash process

CRM ERP

Gateways

Provisioning

Quoting

Tax

Subscription

Relationship

Management Hub

The Zuora Central Platform is driven by

6 core engines

CHARGE

MODELPROMOTIONS CURRENCY

Flat fee

Per unit

By volume

By tiers

Blended

% of discount

Fixed discount

Free trial

VIP discount

Promo codes

USD

EUR

HUF

GEL

+ more

OTHER PRICING

FACTORS

Price uplift

Tax inclusion

Tax exclusion

BILLING

FREQUENCY

Per month

Per year

Per quarter

Per week

By term

Issue based

Specific weeks

Specific months

BILLING

TRIGGERS

Upon Sign-up

Upon Fulfillment

Upon Activation

BILLING

TIMING

Batch in-advance

Batch in-arrears

Ad-hoc

USAGE

RATING

Overage charge

Tiered overage

Overage smoothing

Overage rollover

Pay as you go

Prepaid drawdown

Multi-attribute

Minimum commitment

Pricing Engine

Create new pricing in minutes,

without having to re-code or re-engineer your rating and billing processes

Future-dated

Event

Subscribe

Consume

Upgrade

Downgrade

View Subscription

Early or Late Invoice

Renew

And more

RECURRING

BILLING

AD HOC BILLING

FUTURE BILLING

SIMULATION

● Automatic proration & taxation

● Easy billing batches to segment customers by billing

date, payment type, and other settings

SUBSCRIPTION EVENTS FLAWLESS BILLINGRATING ENGINE

Real-time

Charge

Calculator

Taxation

Service

Usage

Ingestion

Service

Time-based

Invoice

Generator

● On-demand rating and charge calculations for real-

time invoice generation

● On-demand rating, charge calculations, and invoice

generation for future-dated events

● Trigger-date billing

● Simulate future billings to better forecast billing and cash

● Simulate billing over and beyond the entire lifecycle of a

subscription to keep a customer informed

Rating Engine

Flawlessly bill customers at scale for any monetization or account model

Customer Inc.

Customer EMEA

Customer N.Am

Customer West

Customer East

Reseller A

Reseller B

Your Company

Old World: Hierarchy

Customer Inc.

Customer EMEA

Customer N.Am

Customer West

Customer East

New World: Network

Today’s systems were designed for rigid account hierarchies,

not networks of relationships

OwnershipAssociation Payment Responsibility

Who “owns” the

subscription?

What family of companies,

units, or people is the

subscription associated with?

Who is paying for the

subscription?

● Ownership & payment responsibility are not always contained in a single hierarchy

● These can change over time

The Challenge:

There’s 3 concepts when it comes to managing

subscription relationships

COMPAN

Y A

SUB.

1

SUB.

2

DEP

T 1

DEP

T 2

COMPANY

B

INVINV

OWNERSHIP ASSOCIATION

PAYMENT

RESPONSIBILITY

Subscription 2 Department 2 Company A Company BIn other systems, the

invoice for Subscription 2

can’t be sent to Company B

unless it belongs under the

same hierarchy as A

Unlike systems with rigid hierarchies, Zuora decouples ownership, association, and payment responsibilities.

This lets companies easily change account relationships over time.

Designed to let you manage a network of subscription relationships

INV: Motor Trend

and Surfer Mag

Bill To: California

Use Case Example 1: Gifting in B2C RelationshipsExample of a subscription that spans 2 family associations

TEN: Motor Trend

Subscription

TEN: Surfer

Magazine

Subscription

TEN: Super Street

Subscription

INV: Super Street

Subscription

Bill To: New York

Use Case Description

Dad pays the bills for his kids

Grandpa, who lives in New

York, gives his grandson a

subscription as a gift and pays

for the first 6 months

TOM TAMMY

GRANDPA DAD

INV: Motor Trend,

Super Street, and

Surfer Mag

Bill To: California


After 6 months, the son decides to keep

the subscription

The payment responsibility transfers

ownership to the dad

Use Case Example 1: Gifting in B2C RelationshipsExample of a subscription that spans 2 family associations

TOM TAMMY

GRANDPA DAD

TEN: Motor Trend

Subscription

TEN: Surfer

Magazine

Subscription

TEN: Super Street

Subscription

Digital Service

Start Date: 2/1/17

Term: 12 months

HW + Maintenance

Start Date: 1/1/17

Term: 24 months


Customer buys hardware and value added maintenance through the channel

Customer buys digital service direct from vendor

INV: $170,000

Hooli HW+Main.

Piper HW+Main.

INV: $5000

Service Period:

1/1/17 - 3/31/17

Hooli CDW

Use Case Example 2: B2B Cross-Channel CommerceModern enterprises are now engaging the channel differently due to the proliferation of digital services


Customer’s departments all have different buying preferences

Some departments even purchase from different resellers

Use Case Example 2: B2B Cross-Channel CommerceWhich becomes more complex with multidivisional Enterprises

Hooli Marketing Hooli Support

Hooli

Digital Service

Start Date: 2/1/17

Term: 12 months

HW + Maintenance

Start Date: 1/1/17

Term: 24 months

Digital Service

Start Date: 2/1/17

Term: 12 months

HW + Maintenance

Start Date: 1/1/17

Term: 24 months

INV: $25,000

Hooli Subscription

Piper Subscription

INV: $70,000

Marketing

HW+Main.

[____] HW+Main.

INV: $100,000

Marketing

HW+Main.

[____] HW+Main.

CDW Ingram

Saudi Arabia

Exploration

Company

Dubai Geological

Exploration

Truck 1: Device + Software

Activation Date: 1/1/17

Term: 12 months



Term: 12 months

Truck 150: Device +

Software


Term: 15 months



Term: 12 months



Term: 12 months

Truck 100: Device +

Software


Term: 15 months


Oil company has two vehicle

fleets who are subscribing to

remote monitoring devices

Each device is activated

separately with it’s own term

and billing frequency

INV: All active

trucks

Bill To: Saudi Arabia

INV: All active

trucks

Bill To: Dubai

Use Case Example 3: Connected IoT Device MovementA subscription moves from one association to another



Term: 12 months



Term: 12 months

Truck 149: Device +

Software


Term: 12 months



Term: 12 months



Term: 12 months

Truck 100: Device +

Software


Term: 15 months


Truck 150 from the Saudi fleet

is reallocated to the Dubai

fleet, changing subscription

ownership

Dubai company pays for

remainder of service on Truck

150’s device subscription

Truck 150: Device +

Software


Term: 15 months

Saudi Arabia

Exploration

Company

Dubai Geological

Exploration

INV: All active

trucks

Bill To: Saudi Arabia

INV: All active

trucks

Bill To: Dubai

Use Case Example 3: Connected IoT Device MovementA subscription moves from one association to another

$100CREDIT CARD

$25CHECK/PO

€75SEPA

GLOBAL

COVERAGEMultiple Methods,

Multiple Gateways

DUNNINGSmart Retries

Collection Workflows

BATCHINGPayment Runs

Global Payment Engine Maximize recurring cash collections at scale

$200+ Currency Conversion

RECEIVABLES CASH

Subscription Orders EngineManage the subscription lifecycle and automatically recalculate billing, payments,

and revenue for every customer event

2017 2018 2019

Jan 1, 2018

Add Product

Add Services

MRR: $1,000

2020

BILLING

PAYMENTS

METRICS

REVENUE

Jan 1, 2017

Create Subscription

MRR: $500

Jan 1, 2019

Remove Service

MRR: $750

PROVISIONING AND

NOTIFICATIONS

Subscription Accounting EngineAudit-ready revenue management without sacrificing business agility

REVENUE MANAGEMENT

-

+

x

=÷

∞

±

≅

≈

≤

≥

$

¢

£¥

€invoice

allocate

distribute

recalculate

recognize

MODEL

Per unit pricing

Tiered pricing

Volume pricing

Ramp pricing

Usage pricing

Pay as you go

Overage rollover

Multi-attribute

Pre-paid

drawdown

and more!

calculate

audit

account

analyzerecord

post

verify

Consume

Upgrade

Downgrade

Add-On

Remove

Rextend

Resume

Renew

EVEN

T

BUSINESS METRICS

BEHAVIORAL

METRICS

PREDICTIVE SCORES

MRR, ACV, TCV, Bookings, Billings,

Cash

Usage Intensity, Contracted Utilization

Churn probability, Engagement Score

FINANCIAL, BEHAVIORAL AND

DEMOGRAPHIC DATA SOURCES

INTERNA

L

INGESTION

TRANSFORMATION

QUERY

ANALYSIS

METRICS & SCORESMETRICS & SCORING ENGINE

Subscription Metrics EngineInstant insights into business performance and customer engagement

Monetize with any modelCombine one-time, recurring and usage-

based charges to design strategic and

tailored pricing plans

Sell one product many waysLeverage different pricing levers such as

different billing frequencies, different

currencies, different billing triggers,

different time periods, and more

Automate downstream impactsApply billing and revenue rules to each

pricing plan to trigger the Rating and

Subscription Accounting Engines

Pricing EnginePrice and package in minutes without having to re-code back office systems

Subscription Orders EngineManage the subscription lifecycle, and automatically recalculate billing,

payments and revenue for every customer event

Manage any customer eventCapture customer events, such as

when subscribers consume, suspend,

resume, renew, downgrade or cancel

their subscriptions

Trigger backend automationTranslate customer events into easy to

understands bills, timely collections,

accurate revenue recognition and up-

to-date subscription metrics

Keep the customer informedAutomate service provisioning, trigger

customer notification, and ensure

subscription information is accurately

represented across all channels

Rate for complex account

relationships or pricing models Rate for complex charge calculations,

hybrid monetization models,

distributed billing, and changes in

account relationships.

Rating EngineBill customers flawlessly at scale for any monetization or account model

Rate usage in real-timeIngest usage and rate for recurring or

ad hoc charges in real-time. The same

service can simulate future billings to

better forecast billing and cash.

Bill for anythingGenerate tailored invoices for any

pricing model ad-hoc or on a recurring

basis. Trigger billing for individual

subscribers or groups of subscribers.

Global Payments EngineMaximize recurring cash collections at scale

Enable Global Payment OptionsConnect to 30+ pre-built payment gateways, 10+

global payment methods, and 100’s of

currencies

Enable Efficient Payment Operations Allow subscribers to pick their preferred

payment dates down to the time and batch them

into groups for optimal processing times

Minimize involuntary churnDunning settings such as payment retry rules,

collection workflows, and payment method

updaters prevent unnecessary revenue leakage

31 Pre-built Payment Gateway Integrations

Subscription Accounting EngineAudit-ready, automated financial operations for maximum business agility

Automate revenue recognitionLeverage pre-configured rules and logic

to calculate, distribute and recognize

revenue for any pricing model or change

in the subscription lifecycle

Optimize efficiency for

accounting and finance teamsPre-built functionality for FX conversion,

GL connectors, GL segmentation rules,

AR Aging, AR Roll-forward, and more

Enable financial complianceWith audit trails of financial changes,

accounting period lock-down

capabilities, and user permissions and

controls for multi-entity enterprises

Blend financial and behavioral

metricsIngest data across multiple sources to

blend financial metrics (like contract

utilization) with behavioral metrics (like

product usage intensity)

Compute key metrics in real-

timeCalculate subscription metrics like

MRR, TCV or Net Retention across

quotes, subscriptions, orders, reports

and other areas of the application

Subscription Metrics EngineInstant insights into business performance and customer engagement

Predict future outcomesUse machine learning algorithms to

understand which subscribers are

most likely to renew or churn and

take preventative action

Platform InfrastructureGives businesses the agility they need with a secure, scalable,

and open and extensible microservices platform

Integration frameworkEasily integrate with Zuora’s

object mapping, notifications

service, batch or real-time sync,

data transformation and other

services

Enterprise-grade scalabilityScale your business on infrastructure

that handles

- 1B API transactions per month

- 99.97% uptime reliability

- 29.89ms API response times

- Micro services architecture

Application marketplaceAccelerate your pace of innovation

with 100+ prebuilt apps that offer

- 3rd party data sync

- Bespoke charge models

- Custom rev rec rules

- Custom dunning flows

- Pre-built integrations

- Geo specific compliance

Secure & Compliant

Highest standards of certification

✓ PCI DSS

✓ SOC 1 Type 2

✓ SOC 2 Type 2

✓ ISO 27001

✓ HIPAA

✓ FIPS 140-2 Encryption

✓ 2-Factor Authentication

✓ IP Range Restrictions

CHANNELS

WEBCRM

Zuora Quotes Zuora 360

TAXATION

Sales TeamSupport Team

Online Users

Partners

GL

3RD PARTY

PAYMENT GATEWAYS

API Based Integration

Manual

Out of the Box Integration

Zuora fits within a wider ecosystemNotification Engine/Callouts

Subscribed 2017: The 6 Engines Of The Zuora Platform

Technology

Transcript of Subscribed 2017: The 6 Engines Of The Zuora Platform