TURNINGCUSTOMERS

INTO SUBSCRIBERS

Tyler SloatCFO,Zuora

WE NOW LIVEIN A

SUBSCRIPTION ECONOMY#shifthappens

A GLOBAL PHENOMENON

80%Of customersare

demanding new

consumption models

– TheEconomist 2014

50%Of people in Franceare

movingaway from

traditional ownership

- Institut Français D’opinion

Publique(IFOP)

80%Of German companies

have dealt withthe issue

of subscription

businessmodels.

- IDGResearchServices

$420BSpent on subscriptions

in the US in 2015; up

from $215B in2000 .

- Credit Suisse

OUTCOMES

Not Ownership

CUSTOMIZATION

Not Generalization

CONSTANTIMPROVEMENT

Not PlannedObsolescence

THEWAYPEOPLEBUYHASCHANGED

FOR GOOD

We havenew expectations

IOT

HIGH TECH CLOUD SERVICESEDUCATIONCONSUMER

GOODS

MEDIAHEALTHCARE COMMUNICATION

EVERYINDUSTRYISSHIFTINGLeaders aredelivering anewexperience with anewkind of businessmodel

WE (Customers) WANTTHE

SUBSCRIPTION EXPERIENCE

OngoingValue

On-demandFulfillment

PersonalizedService

Anywhere, Real-time

MemorableExperiences

WE CALLTHISNEW ERATHESUBSRIPTION ECONOMY

At theheart of theSubscriptionEconomy isthe

idea that customersarehappier subscribingto

theoutcomesthey want, when they want them,

rather than purchasingaproduct with the

burdenof ownership

WHATDOESTHISMEAN FOR

COMPANIES

A NEW WAY OF THINKING

customer

product

channels

subscriber

channels

product + service

vs.

PRICING

MARKETING

Unit Sales

Branding

Value pricing

Experience

Selling outcomes

Customer lifetimevalue

Deeprelationships

SALES

FINANCE

Selling products

Unit margins

CULTURE Hit products

THISCHANGES EVERYTHING

The9 Keys

PProduct

PM/PMM

R&D

Docs

PPeople

RecruitingOnboardingTrainingHelpDesk

MMoney

Finance

Operations

Legal

PPipelineWeb

Social

AR/PREvents

ProductsLaunches

AAcquireDemandGen.

Field Enablement

BusinessDev.Emerging

EnterpriseInternationalSalesEng.

DDeploy

Self ServiceSquadsPartnersMethodology

RRun

TechOpsSupport RenewalsAccount Mgmt. AdoptionTraining

EExpandUpsell

Cross-sell