1 PRODUCT OVERVIEW Everything you need to power your subscription business, from Z to a.
2 Our mission: to help you build your subscription business by establishing, cultivating and monetizing recurring customer relationships. Here s how Zuora can help. 2
3 TABLE OF CONTENTS _01 _02 _03 _04 _05 What is Zuora? Design Your Subscriptions - Offer Customer-centric Pricing - Make Commerce Multi-channel - Support Lifecycle Order Management Scale Billing and Payments - Automate Recurring Billing - Automate Recurring Payments - Manage Global Payments Manage Subscription Finance - Manage Recurring Revenue - Measure Subscription Metrics - Complement your General Ledger Run on an Enterprise-grade Platform 3
4 _01 What is Zuora Zuora is the world s largest provider of Relationship Business Management (RBM) services. Zuora empowers businesses to build subscription models that keep customers consistently engaged in long-term relationships. Our cloud-based technologies help companies create relevant and memorable experiences any time they interact with a customer. We combine subscription commerce, billing, and finance solutions in one package. On top of it all is an analytical layer that offers realtime insight into each subscriber s identity, as well as the business s overall performance. It s way more than just subscriptions it s the new world of of happy business. Headquartered in Foster City, CA, Zuora serves over 800+ clients including HP, Dell, Financial Times, GM, Box, Zendesk, LifeTech and more. 4
6 Billing & Payments Ops Recurring Revenue CRM TAXATION Subscription Management Product Catalog GL PAYMENT GATEWAYS WEB Here s how Zuora fits into your ecosystem 6
7 PRODUCT & MARKETING SALES OPERATIONS & IT FINANCE What do you mean it ll take IT 4 weeks to add these new prices? Can we get the new pricing on our website this week? Do we have any data on which pricing or packaging is most successful? I asked IT for an updated quoting process to include new product and pricing rules. I hope we do it by Friday! Can we see this customer s past invoices and payments in our CRM? It s crucial for upsells! We have 5 million credit card users in 75 countries, what s a secure, PCI-compliant method to capture all those payments? How can my team support 3 million invoices per month? How do I keep up with revenue schedules when a subscription is upgraded, downgraded, renewed, or cancelled? Where can I find MRR, ARR, churn, and other subscription metrics? and here s who it impacts 7
8 _01 What is Zuora? _02 Design Your Subscriptions
9 We weren't able to find a solution that would allow us to innovate around our product and pricing -- until we met Zuora. -TOM GONSER, FOUNDER, DOCUSIGN DocuSign handles every aspect of electronic signatures. Zuora gave DocuSign the tools to manage thousands of distinct pricing plans for their customers. Docusign has been a Zuora customer since Between 2012 and 2014, DocuSign s subscriber base grew from 95,000 paying companies to 105,000. 9
10 Offer Customer-Centric Pricing We ve shifted from a product-focused world to a customer-focused one, and it s becoming more important to create products and prices tailored to your customers. With Zuora, you can adjust pricing on the fly to tackle new product lines, address customer needs, or head off the competition. Best part is: pricing changes are UI driven and can go into effect immediately without any engineering involvement. It s a product manager s dream. PLAN-BASED RATE PLANS Rate plans represent a collection of fees that you charge a customer when they sign up for your product. For example, you might have a Premium Plan and a Standard Plan for the same product. Mix and match plans to create tailored offers. 32+ CHARGE MODELS Create unlimited combinations of one time, recurring and usage pricing. From flat month-to-month fees to volume-based usage fees, there are over 32 charge models available. 10 PACKAGING & PROVISIONING Combine features on the fly to create unique packages. By defining these features in Zuora, you can streamline automatic provisioning whenever a new subscription is created.
11 You ve got customer in different countries, different regions, with different preferences. You ll need these capabilities to capture them all. MULTI-CURRENCY Price products in any currency and manage them in one central location. Zuora gives you the billing, payments, and finance arms to easily carry international products through the whole process. PROMOTIONAL OFFERS Launch incentives like free trials, promotions and discounts to capture more market share. COMPLEX PRICING Get creative with advanced pricing models like smoothing and uplifts to manage complex pricing at scale. 11
12 Make Commerce Multi-Channel Your subscribers are everywhere. And you want to interact with them in different ways. On the web, through distribution channels, on tablets, on mobile phones. Zuora helps you deliver consistent experiences on all channels and keep subscriber information consistent. B2B ASSISTED SALES Our Salesforce solution, Zuora for Salesforce, provides two native Force.com applications: SUBSCRIBER VISIBILITY Extend your customer view with subscriber information such as subscriptions, invoices, payments, etc. in real-time. SUBSCRIPTION-AWARENESS Embed subscriptions in Sales Cloud, Service Cloud, partner portals, Salesforce1 & more. 1 2 Quotes to enable direct assisted sales of your subscription offerings, and 360 Sync to provide full visibility of key subscriber activities (subscriptions, invoices, payments, refunds) and subscriber analytics in Salesforce. 12 PRODUCT & PRICING RULES Automatically offer add-ons or prices based on your product or customer attributes. INTUITIVE PRODUCT SELECTOR Simplify complex product selection and configuration options for your front office staff with Guided Selling. In addition, we offer a robust Zuora Developer Kit (ZDK), a toolkit of custom components, classes and APIs to enable sales admins to build custom subscription flows and use cases in Salesforce.
13 B2C SELF SERVICE COMPLETE CONTROL OVER THE USER EXPERIENCE LAUNCH IMMEDIATELY Easy APIs, and no need to get a merchant bank BUILT-IN CREDIT CARD VALIDATIONS DYNAMIC LOCALIZATION Whether your customers subscribe online or through a mobile device, setting up an ecommerce solution should be simple and tightly integrated with your overall subscription strategy. Zuora allows you to: 1 Embed checkout pages for secure commerce on any channel. 2 Utilize REST and SOAP APIs to engage customers through any device or channel. PCI LEVEL 1 COMPLIANT US-EU SAFE HARBOR COMPLIANT SSAE16 SOC 1 TYPE 2 COMPLIANT PCI-COMPLIANT PAYMENTS TRUSTE CERTIFICATION 3 Easily configure credit card validations or localized pages for a global commerce strategy build custom subscription flows and use cases in Salesforce. 13
14 Support Lifecycle Order Management Along every subscription, your customers will want to change their subscription as needs evolve. They will upgrade, add seats, add a new service, downgrade, suspend, and more. Change often causes chaos. But with Zuora and Zuora for Salesforce these changes are easy, seamless. LIFECYCLE QUOTES Create quotes not only for new subscriptions but also for the full lifecycle of upgrades, renewals, add-ons, cancellations, and more. LINE-ITEM PRICING FLEXIBILITY Close deals more rapidly by enabling sales reps to apply price, quantity, discount, and subscription term changes within a quote. 14
15 ONE-CLICK QUOTE-TO-CASH Seamlessly send quotes from Salesforce to Zuora, so recurring invoicing and cash collections can begin immediately and automatically. CONFIGURABLE QUOTE TEMPLATES Present prospects with accurate and easy-tounderstand quote PDF documents, complete with your own branding and look-and-feel. $ MRR $ TCV REAL-TIME SUBSCRIPTION METRICS View the full financial impact of a quote with real-time subscription metrics like discounts, monthly recurring revenue (MRR) and total contract value (TCV). 15
16 _01 What is Zuora? _03 Scale Billing & Payments
17 With Zuora, we re more effectively billing, taking payments, and really just managing the entire customer lifecycle. -CATHY MACDONALD, EVP, IT, XPLORNET Xplornet is Canada s first national 4G network, delivering high-speed connectivity to more than 250,000 customers and 700 dealers. 17
18 Automate Recurring Billing Whether it s recurring, one-time, usage, cyclical, prorated, or in-arrears - with Zuora, it s automated. Zuora simplifies your recurring billing process and manages hundreds of thousands of subscriptions at once. In addition, Zuora helps you send accurate and timely invoices to ensure that each customer touchpoint is personalized and reflective of your brand. DYNAMIC ACCOUNT MANAGEMENT Manage complex subscription billing use cases. Set payment terms, manage hierarchical billing relationships, and consolidate invoices across multiple subscriptions. FLEXIBLE BILLING Support any pricing strategy with Zuora s billing engine. Bill a customer immediately or when the service is delivered, rate current or prior period usage, and calculate automatic prorations whens subscriptions change. AUTOMATED BILL RUNS Group customers by different geographies and attributes and automate billing for each group. 18
19 BRANDED CUSTOMER TOUCHPOINTS Easily configure branded invoices. Send different invoices to different customers based on location, language, segment, and subscription type. CONFIGURABLE INVOICE TEMPLATES A wide range of template capabilities, such as grouping or conditional logic, allow you to easily configure invoice templates without creating hundreds of variations. 19
20 Automate Recurring Payments Zuora automatically manages and registers collections from one-time to high-volume recurring payments. Error handling and credit card failures are factored in and taken care of. And the whole system is PCI Level 1 compliant, so you can store customers payment information worry-free. PAYMENT LIFECYCLE MANAGEMENT In addition to PCI-compliant payments, Zuora also handles refunds, credits, reconciliation, and other collection-related transactions. That means any accounting impacts that may come with these changes are also automatically updated. AUTOMATED COLLECTIONS Make it easy for your team by setting up auto-pay for your customers or collecting from groups of customers at one time. INTELLIGENT ERROR HANDLING Handle chargebacks, reversals, and other payment errors seamlessly in Zuora. You also have the flexibility to configure payment retry rules, create dunning notifications, apply late payment fees, or set up automatic payment method updates to avoid invalid credit cards. 20
21 Manage Global Payments Do business across the globe. Give your customers the convenience of paying any way they like. Collect payments through almost any gateway, and use any method, including credit cards, debit cards, wire transfers, PayPal, tokenized systems and even purchase orders. INTEGRATED TAXATION Simplify tax calculation and tax management. Calculate taxes in real-time, collect anywhere in the world with tax-inclusive and tax-exclusive pricing, streamline tax remittance. GLOBAL PAYMENTS Go global and let your customers pay how they want. Collect using the world s leading payment methods, support multiple currencies, and work with a global network of payment gateways. 21
22 _04 Manage Subscription Finance
23 One of the great benefits of having a robust financial system like Zuora is we can produce our revenue numbers on a oneday close cycle. - SENDGRID SendGrid is an Infrastructure as a Service that delivers more than 13 billion s a month for 150,000+ companies. SendGrid needed to replace their homegrown billing system with a subscriptionmanagement platform that would add more fuel to their growth. With Zuora, SendGrid s service delivery grew 85 percent in
24 Manage Recurring Revenue Subscriptions undergo change, and these changes have revenue impacts. This makes recognizing revenue for subscriptions a million times harder than in a one-time sales system. Not with Zuora. The system automatically produces deferred revenue schedules and stays lock step with any subscription changes. CONFIGURABLE RECOGNITION RULES Easily create and configure separate rules to automate revenue recognition for different products. BUILT-IN SUBSCRIPTION AWARENESS Since revenue recognition rules are assigned to every subscription, revenue schedules are automatically adjusted as changes occur in the subscription lifecycle. 24
25 REVENUE SCHEDULE MANAGEMENT REVENUE RECOGNITION AUTOMATION REVENUE AUDIT TRACKING View revenue schedules in real-time while having the flexibility to manually distribute revenue across accounting periods. Automate revenue recognition with a combination of out-of-the-box recognition models that require no coding and an extensible API framework for complex requirements. Maintain an audit trail by tracking and reporting on all changes made to revenue. 25
26 Measure Subscription Metrics With a subscription-aware data model, it s easy for Zuora to provide the right metrics for measuring recurring-revenue relationships. At any instant, you ll have accurate numbers across billings, bookings, cash and revenue on things like churn, MRR and ARR. IN-APP METRICS AND DASHBOARDS Get quick visibility into key metrics with a wide array of dashboards for individual customers, customer segments, accounting periods, and so forth. REPORTS AND DATA EXPORTS Take advantage of pre-built reports delivered out of the box as well as create ad-hoc reports specific to your needs. Create configurable data extracts for external reporting and data warehousing Basic Information Parent: Name: Account Number: Bill To: Sold To: edit Acme Cloudstream [Navigate Hierarchy] A Bobby Brown Bobby Brown Key Metrics Account Balance 79, USD Total Invoice Balance 79, USD Credit Balance 0.00 USD Contracted MRR 9, USD Today s MRR 9, USD 26
27 Complement your General Ledger Zuora is designed to supplement your existing financial applications. We take on the burden of processing recurring billing, recurring payment and recurring revenue transactions, but we have structures in place that allow our system to remain aligned with your accounting system. Chart of Accounts Accounting Code Name Accounting Code Type Accounts Receivable Assets: Accounts Receivable Check Assets: Cash Credit Card Assets: Cash Customer Cash on Account Liabilities: Customer Cash on ACCOUNTING SYSTEM ALIGNMENT Create a chart of accounts that mirror your accounting system. Easily generate accounting close summary reports from Zuora to accelerate your close process. Credits: $9,532,402 Debits: $3,622,467 Revenue: $21,252,167 2/20/15 - Zach Gordon: $450 payment 2/22/15 - Zach Gordon: $450 refund 2/27/15 - Zach Gordon: $100 payment SUMMARY LEVEL INTEGRATION GL segmentation rules in Zuora slice-and-dice your data along the metrics you care about most. From there, you can easily extract summary-level journal entries and enter them into your General Ledger. DETAIL LEVEL INTEGRATION You can use a detail-level integration to manage revenue with your existing GL in one of two ways: pre-built connectors or detailed data exports both create detail level journal entries that can them be entered into your financial systems. 27
28 _05 Run on an Enterprise-Grade Platform
29 We re trusted by global enterprises $3B ms in invoices put through our system per quarter public companies rely on our compliance & security syncs per second with other systems average response time for all integrations 29
30 Zuora helps you grow your customer relationships. Now isn t that a beautiful thing?