beyond subscriptions and monthly recurring revenue
DESCRIPTION
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