beyond subscriptions and monthly recurring revenue

Post on 14-Jan-2015

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As more software companies become service providers by moving to the cloud, many are realizing that they need to change more than just their product models. Revenue models must shift, too. The old, gold standard of monthly recurring revenue (MRR) seems to be inherently anti-cloud. If software-as-a-service companies want to increase the profitability of their usage-based and subscription services, they must dig deeper into transaction-level data to get clearer insights into what users want and what they buy and plan for more elastic financials.

TRANSCRIPT

Acquire & Analyze Big Data

Your Presenters Curt Raffi - Host Jeff Kaplan - THINKstrategies Jason Mondanaro – MetraTech, Corp.

Acquire, Analyze, Act - A3

Making good decisions requires information.

“Compute as you go.” Slowly scouring your data for insights 24X7

Integrate with billing tools that can provide analysis of your products, pricing & promotions.

Big Data - Been Happening All Along

Financial ServicesRisk, fraud, customer analytics

TransportationM2M, Internet of Things

TelecomCustomer profile monetization, revenue assurance

Digital MediaReal-time ad targeting, web analytics

Top 5 Most ImportantBig Data Sources

Tran

sact

iona

l / stru

ctur

ed D

ata

Social m

edia /

custom

er sen

timen

t

Clicks

tream

Digiti

alm

edia /

rich

med

ia

M2M

/ se

nsor

dat

a0%

20%

40%

60%

80%

100%

Source: Aberdeen Group, January 2012

Big Data Sources

You Are What You Measure Business is complex but pressure is

focused on single key metrics MRR and ARPU

Temptation is to take the easy way out and guarantee the results.

Obstacles of Our Own Design Subscription Cliff

MRR models require customers to make huge decisions one time. If you lose the battle you don’t usually get to try again

Basic Plan

Premium Plan

Share of Wallet Conundrum MRR means that you are

competing with everyone for Share of wallet.

+ !=

Trying to shift the demand curve by bundling has limits

Data Without Common Sense

Don’t make a bad situation worse…

Making Advances, Growing the Biz Ramping Product

Models Give the consumer

an easy path to increase their business with you without making a decision Arrange Valley’s

of Comfort to delight customers, encourage them to push a little more

ValleysOf Comfort ™

Gentle Slopes

You’ll Need Fat Data

Subscription : dumb data

Consumption : fat data

No limit

Grid

Capex

Fixed Price

Shift Towards Consumptive Data

To Tiered

To Smart Grid

To Cloud

To Exchanges

Tiered

Smart Grid

Cloud

Market Pricing

The Customer as a God

Wrap Up

Visual turns big data into actionableknowledge

Architect to track user activity and consumption

Build your business with measurement in mind

Leverage cloud to scale out Big Data

Use pricing, rewards and offers – drive customer & partner behavior

Last Webinar

August 22Act on pricing & product strategies out of the billing system to drive more revenue

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