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hosted	
  by:	
  
Transi0oning	
  to	
  a	
  Subscrip0on-­‐based	
  
Business	
  Model:	
  	
  
A	
  Checklist	
  for	
  Success	
  	
  
hosted	
  by:	
  
Jon	
  Ge@nger,	
  SVP	
  Marke0ng	
   Ashley	
  S0rrup,	
  SVP	
  Product	
  and	
  
Solu0on	
  Marke0ng	
  
hosted	
  by:	
  
10	
   Chance	
  customers	
  will	
  become	
  loyal	
  if	
  they	
  are	
  not	
  loyal	
  within	
  
the	
  first	
  90	
  days	
  a8er	
  provisioning	
  
3.1	
  
100	
   Percent	
  of	
  profits	
  from	
  exis>ng	
  customers	
  for	
  subscrip>on	
  
businesses	
  	
  
Years	
  before	
  a	
  customer	
  become	
  profitable	
  
Subscrip0on	
  businesses	
  by	
  the	
  numbers	
  
10%	
  
3.1	
  
6x	
  
Subscrip0on	
  businesses	
  by	
  the	
  numbers	
  
Chance	
  customers	
  will	
  become	
  loyal	
  if	
  they	
  are	
  not	
  loyal	
  
within	
  the	
  first	
  90	
  days	
  a8er	
  provisioning	
  
More	
  expensive	
  to	
  acquire	
  a	
  new	
  customer	
  vs.	
  renew	
  an	
  
exis>ng	
  customers	
  
Years	
  before	
  a	
  customer	
  becomes	
  profitable	
  
hosted	
  by:	
  
Grow	
  Renew	
  Retain	
  Acquire	
  
•  What	
  is	
  the	
  right	
  
plan?	
  
•  How	
  to	
  transi0on	
  
from	
  free	
  to	
  paid?	
  
•  What	
  are	
  your	
  
compliance	
  and	
  
en0tlement	
  
policies?	
  
•  Is	
  usage	
  mee0ng	
  
expecta0on?	
  
•  Are	
  customers	
  
comple0ng	
  the	
  on-­‐
boarding	
  and	
  
training?	
  
•  Are	
  customers	
  
seeing	
  the	
  full	
  
value	
  of	
  the	
  
offering?	
  
•  What	
  is	
  the	
  
correla0on	
  between	
  
usage	
  and	
  price?	
  
•  What	
  payment,	
  
pricing	
  and	
  terms	
  
are	
  available?	
  
•  What	
  are	
  the	
  
upsell	
  &	
  	
  cross-­‐sell	
  
opportuni0es?	
  
•  What	
  is	
  the	
  next	
  
best	
  offer	
  based	
  
on	
  derived	
  value?	
  	
  
Subscrip0on	
  customer	
  lifecycle	
  
hosted	
  by:	
  
Metrics	
  to	
  measure	
  performance	
  
throughout	
  the	
  lifecycle	
  
Grow	
  Renew	
  Retain	
  Acquire	
  
•  Customer	
  
Acquisi0on	
  Cost	
  
Ra0o	
  (CACR)	
  
•  Breakeven	
  point	
  
•  Free	
  Trail	
  
Conversion	
  Rate	
  
•  Cancela0on	
  
Reason	
  Analysis	
  
•  End	
  User	
  Adop0on	
  
•  Usage	
  Analy0cs	
  
•  Renewal	
  Rate	
  
•  Churn	
  Rate	
  
•  Customer	
  Renewal	
  
Cost	
  Ra0on	
  	
  (CRCR)	
  
•  Upsell/Cross-­‐Sell	
  
Rate	
  
•  Customer	
  Life0me	
  
Value	
  (CLV)	
  
•  Conversion	
  
Reason	
  Analysis	
  
hosted	
  by:	
  
Automa0ng	
  the	
  customer	
  experience	
  
•  On	
  boarding	
  
•  Service	
  
enablement	
  
•  Coupon	
  
redemp0on	
  
•  Single	
  view	
  of	
  
your	
  customers	
  	
  
•  Mul0ple	
  plan	
  
offerings	
  
•  Self	
  service	
  	
  
•  Assisted	
  
•  Offer	
  triggers	
  	
  
•  Plan	
  op0miza0on	
  
	
  
Grow	
  Renew	
  Retain	
  Acquire	
  
hosted	
  by:	
  
Ac0onable	
  tasks	
  based	
  on	
  segmenta0on	
  
LOW	
  
MED	
  
HI	
  
High	
  Risk	
  	
  
	
  
•  Immediate	
  save	
  play	
  
•  Adop0on	
  plays	
  /	
  on-­‐boarding	
  plays	
  	
  
•  High-­‐touch	
  customer	
  engagement	
  
	
  
	
  Moderate	
  Risk	
  
	
  
•  Iden0fy	
  any	
  specific	
  factors	
  (e.g.	
  compe00on)	
  
•  Adop0on,	
  training,	
  or	
  upsell	
  plays	
  
•  Watch	
  list	
  with	
  quarterly	
  contact	
  
	
  
	
  Low	
  or	
  Very	
  Low	
  Risk	
  
	
  
•  Low-­‐touch	
  renewals	
  play	
  120	
  days	
  before	
  expira0on	
  
•  Self-­‐service	
  op0ons	
  with	
  annual	
  customer	
  check-­‐ins	
  
•  Cross-­‐sell	
  play	
  
•  Collect	
  quan0ta0ve	
  characteris0c	
  data	
  to	
  confirm	
  segmenta0on	
  
	
  
hosted	
  by:	
  
Automa0on	
  vs.	
  high-­‐touch	
  engagement	
  
Determine	
  the	
  best	
  type	
  of	
  
customer	
  engagement	
  based	
  on:	
  
•  Usage	
  
•  Subscrip0on	
  value	
  	
  
•  Poten0al	
  CLV	
  
•  Health	
  score	
  
	
  
	
  
by	
  engaging	
  with	
  customers	
  on	
  a	
  
quarterly	
  basis	
  
	
  
	
  
8%	
  
Consider	
  role	
  specializa@on	
  based	
  on	
  business	
  needs	
  and	
  
complexity	
  of	
  your	
  solu0on	
  
hosted	
  by:	
  
Analy@cs	
  
Recurring	
  Sales	
  
Data	
  &	
  
Integra@on	
  
Recurring	
  
Revenue	
  
Current	
  Recurring	
  Revenue	
  Alliance	
  Members	
  
	
  
hosted	
  by:	
  
How	
  we	
  can	
  help	
  
*Based	
  on	
  internal	
  studies,	
  companies	
  who	
  worked	
  with	
  ServiceSource	
  reduced	
  churn	
  by	
  an	
  average	
  of	
  9	
  points	
  
**ServiceSource	
  internal	
  study	
  comparing	
  sales	
  produc>vity	
  before	
  and	
  a8er	
  using	
  Renew	
  OnDemand	
  showed	
  an	
  average	
  increase	
  of	
  20%	
  
Best	
  prac>ce	
  process	
  &	
  industry	
  benchmarking	
  
Increase	
  renewal	
  rates	
  and	
  
efficiency	
  	
  
	
  
Op0mize	
  subscrip0on	
  revenue	
  
throughout	
  the	
  customer	
  lifecycle	
  
	
  
Maximize	
  performance	
  with	
  our	
  experts	
  in	
  
customer	
  success	
  and	
  renewal	
  sales	
  
Op>onal	
  
	
  
	
  
	
  	
  	
  	
  	
  
20%	
  
increase	
  in	
  sales	
  produc0vity**	
  
15pt	
  
improvement	
  in	
  
renewal	
  rates*	
  
hosted	
  by:	
  
The	
  Aria	
  Difference	
  
Make	
  More	
  Money	
  
•  Op0mizing	
  the	
  life0me	
  
value	
  of	
  customer	
  
rela0onships	
  
•  The	
  business	
  is	
  
growing	
  and	
  valued	
  by	
  
Wall	
  Street	
  
Keep	
  Customers	
  
Engaged	
  
•  Delivering	
  a	
  consistent	
  
high	
  quality	
  customer	
  
experience	
  
•  My	
  informa0on	
  always	
  
presented	
  in	
  context	
  
	
  
Rela0onship	
  
Commerce	
  
Ac0ve	
  
Orchestra0on	
  
Adap0ve	
  
Selling	
  
Single	
  	
  
Customer	
  	
  
View	
  
Easier	
  to	
  Manage	
  
•  It’s	
  in	
  the	
  Cloud!	
  
•  Pushes	
  Informa0on	
  
•  No	
  rip	
  and	
  replace	
  
Enterprise	
  
Cloud	
  
Solves	
  Big	
  Problems	
  
•  Handles	
  scale	
  and	
  
complexity,	
  security,	
  	
  
reliability,	
  compliance	
  
•  High	
  Performance	
  Opera0on	
  
All	
  Contents	
  ©	
  2013	
  Aria	
  Systems	
  
hosted	
  by:	
  
Q&A	
  

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Transitioning to a subscription business model

  • 1. hosted  by:   Transi0oning  to  a  Subscrip0on-­‐based   Business  Model:     A  Checklist  for  Success    
  • 2. hosted  by:   Jon  Ge@nger,  SVP  Marke0ng   Ashley  S0rrup,  SVP  Product  and   Solu0on  Marke0ng  
  • 3. hosted  by:   10   Chance  customers  will  become  loyal  if  they  are  not  loyal  within   the  first  90  days  a8er  provisioning   3.1   100   Percent  of  profits  from  exis>ng  customers  for  subscrip>on   businesses     Years  before  a  customer  become  profitable   Subscrip0on  businesses  by  the  numbers   10%   3.1   6x   Subscrip0on  businesses  by  the  numbers   Chance  customers  will  become  loyal  if  they  are  not  loyal   within  the  first  90  days  a8er  provisioning   More  expensive  to  acquire  a  new  customer  vs.  renew  an   exis>ng  customers   Years  before  a  customer  becomes  profitable  
  • 4. hosted  by:   Grow  Renew  Retain  Acquire   •  What  is  the  right   plan?   •  How  to  transi0on   from  free  to  paid?   •  What  are  your   compliance  and   en0tlement   policies?   •  Is  usage  mee0ng   expecta0on?   •  Are  customers   comple0ng  the  on-­‐ boarding  and   training?   •  Are  customers   seeing  the  full   value  of  the   offering?   •  What  is  the   correla0on  between   usage  and  price?   •  What  payment,   pricing  and  terms   are  available?   •  What  are  the   upsell  &    cross-­‐sell   opportuni0es?   •  What  is  the  next   best  offer  based   on  derived  value?     Subscrip0on  customer  lifecycle  
  • 5. hosted  by:   Metrics  to  measure  performance   throughout  the  lifecycle   Grow  Renew  Retain  Acquire   •  Customer   Acquisi0on  Cost   Ra0o  (CACR)   •  Breakeven  point   •  Free  Trail   Conversion  Rate   •  Cancela0on   Reason  Analysis   •  End  User  Adop0on   •  Usage  Analy0cs   •  Renewal  Rate   •  Churn  Rate   •  Customer  Renewal   Cost  Ra0on    (CRCR)   •  Upsell/Cross-­‐Sell   Rate   •  Customer  Life0me   Value  (CLV)   •  Conversion   Reason  Analysis  
  • 6. hosted  by:   Automa0ng  the  customer  experience   •  On  boarding   •  Service   enablement   •  Coupon   redemp0on   •  Single  view  of   your  customers     •  Mul0ple  plan   offerings   •  Self  service     •  Assisted   •  Offer  triggers     •  Plan  op0miza0on     Grow  Renew  Retain  Acquire  
  • 7. hosted  by:   Ac0onable  tasks  based  on  segmenta0on   LOW   MED   HI   High  Risk       •  Immediate  save  play   •  Adop0on  plays  /  on-­‐boarding  plays     •  High-­‐touch  customer  engagement      Moderate  Risk     •  Iden0fy  any  specific  factors  (e.g.  compe00on)   •  Adop0on,  training,  or  upsell  plays   •  Watch  list  with  quarterly  contact      Low  or  Very  Low  Risk     •  Low-­‐touch  renewals  play  120  days  before  expira0on   •  Self-­‐service  op0ons  with  annual  customer  check-­‐ins   •  Cross-­‐sell  play   •  Collect  quan0ta0ve  characteris0c  data  to  confirm  segmenta0on    
  • 8. hosted  by:   Automa0on  vs.  high-­‐touch  engagement   Determine  the  best  type  of   customer  engagement  based  on:   •  Usage   •  Subscrip0on  value     •  Poten0al  CLV   •  Health  score       by  engaging  with  customers  on  a   quarterly  basis       8%   Consider  role  specializa@on  based  on  business  needs  and   complexity  of  your  solu0on  
  • 9. hosted  by:   Analy@cs   Recurring  Sales   Data  &   Integra@on   Recurring   Revenue   Current  Recurring  Revenue  Alliance  Members    
  • 10. hosted  by:   How  we  can  help   *Based  on  internal  studies,  companies  who  worked  with  ServiceSource  reduced  churn  by  an  average  of  9  points   **ServiceSource  internal  study  comparing  sales  produc>vity  before  and  a8er  using  Renew  OnDemand  showed  an  average  increase  of  20%   Best  prac>ce  process  &  industry  benchmarking   Increase  renewal  rates  and   efficiency       Op0mize  subscrip0on  revenue   throughout  the  customer  lifecycle     Maximize  performance  with  our  experts  in   customer  success  and  renewal  sales   Op>onal                 20%   increase  in  sales  produc0vity**   15pt   improvement  in   renewal  rates*  
  • 11. hosted  by:   The  Aria  Difference   Make  More  Money   •  Op0mizing  the  life0me   value  of  customer   rela0onships   •  The  business  is   growing  and  valued  by   Wall  Street   Keep  Customers   Engaged   •  Delivering  a  consistent   high  quality  customer   experience   •  My  informa0on  always   presented  in  context     Rela0onship   Commerce   Ac0ve   Orchestra0on   Adap0ve   Selling   Single     Customer     View   Easier  to  Manage   •  It’s  in  the  Cloud!   •  Pushes  Informa0on   •  No  rip  and  replace   Enterprise   Cloud   Solves  Big  Problems   •  Handles  scale  and   complexity,  security,     reliability,  compliance   •  High  Performance  Opera0on   All  Contents  ©  2013  Aria  Systems