Subscribed 2016: A Peek Under the Hood at Zuora's Subscription Automation Engine

Learn how Zuora can help streamline your subscription billing, payments, and AR settlement. From complex calculations and tax rules to payment collection and refunds, we have you covered!

Check out Zuora Academy for more actionable advice for finance, marketing, tech, operations, product, and more. All the info you need to build and run an amazing subscription business: https://www.zuora.com/academy/

1. A Peek Under the Hood Zuora’s Subscription Automation Engine Nicholas Harlow and Keenan Simmons Product Management, Zuora

2. t oday’s speakers page 2 Product Manager for Zuora’s core billing and accounts receivable settlement capabilities. Prior to his role at Zuora , he managed products at other organizations that focused on application mobility and security. Nicholas Harlow Zuora PM for Payments Processing. Prior lives: technical sales guy; finance & private equity guy, lots of billing experience Keenan Simmons Finance Systems Manager at Five9. Prior to her current role, she held positions as a Business and Systems Analyst, Administrator, and Consultant with a focus on financial analysis, forecasting, and ERP integration. Valentina Selskaya

3. a genda Customer perspective – Intro to Five9 (00:05) Journey to the Subscription Economy ( 00: 25) Product Pricing and Packaging Managing Subscriptions Billing and Payments Operations Real World Use Case: Zuora at Five9 (00:10) Q&A (00 :05)

4. Customer Perspective Introduction to Five9

5. 37% CAGR (2009 – 2015) Annual Revenue 2013 $19M $26M $43M $64M $84M 2014 $103M The Leader in Cloud Contact Center 15 years of cloud contact center experience 600+ employees 2,000+ customers (across 5 continents) 3 billion+ interactions per year 2015 $129M

6. The Simply Smart Contact Center Powered by Five9 Connect

7. 8 Company Confidential Success Across Industries

8. Billing Transformation Before… After… Bill Run

9. Journey to the Subscription Economy

10. Zuora: A prospect-to-cash solution for relationship-centric enterprises page 11 Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace Pricing & Packaging Pricing, Bundling, Entitlements Billing Rating, Invoicing, Taxation Analytics Sub. Identity, Dashboards, Report Builder, Segments, Triggers Payments Online payments, Offline payments, Credits, Adjustments Revenue Revenue Recognition, Accounting Close, GL Integration Subscriber Management Cross-sells, Upsells, Renewals, 360 Sync, Self Service Quoting Configuration, Guided Selling, Rules Engine Platform

11. As businesses grow more sophisticated in the subscription economy over time, pricing and billing gets more complex Responding to the market and customers Competitive response Periodic price change cadence Launch new products Launch new features Expand to new international markets Run marketing promotions Company COMPANY LAUNCH Single product Simple monthly pricing PRODUCT EXPANSION Add-on products Product bundles INTERNATIONAL GROWTH Multiple currencies Regional pricing PRICING OPTIMIZATION Pricing Tiers Usage + overages A/B testing REVENUE ENHANCEMENT Product upgrades Billing frequencies Business Maturity INFINITE PRICING OPTIONS

12. j ourney to the subscription economy key capabilities page 13 01 pricing & packaging 2 managing subscriptions 03 b illing and payments

13. 01 p ain p oint: rapidly iterating on product pricing and packaging is a major challenge.

14. pricing & packaging flexible subscription-enabled product catalog page 15 powerful product catalog Multiple charge models, billing periods enable easy and flexible product configuration and evolution features description Charge models: One-time, recurring, usage Flexible billing: Weekly, Monthly, Quarterly, Annually Pricing models: Flat fee, volume pricing, per unit pricing In advance/arrears Multi-currency pricing support Charge model builder Product bundling and rules with Salesforce Coming Soon! New!

15. demo product catalog page 16

16. n ew & upcoming features charge model builder and product bundling in salesforce page 17

17. 02 p ain point: initially onboarding subscribers is easy; managing subscribers as their needs evolve is hard.

18. managing subscriptions turn customers into subscribers page 19 powerful subscription management Easily onboard new subscribers Manage subscriber lifecycle - renewal and cross/up-sell features description Easily create and manage subscriptions Integrate with e-commerce and quoting Mix and match pricing strategy Seamless recurring billing Flexible amendments Suspend / resume New! Coming Soon!

19. demo subscription management page 20

20. n ew & upcoming features flexible amendments & suspend/resume page 21

21. 03 p ain point: recurring billing and getting paid as quickly as possible are not trivial.

22. j ourney to the subscription economy billing and payment operations page 23 automated recurring billing and payments Streamline and simplify complex recurring billing Get paid quickly with clear, accurate, detailed invoices Integrated tax automation simplifies taxes features description Automate large scale recurring billing Clear, easy-to-understand invoices expedite payment by limiting customer confusion, inquiries, and disputes Flexible and automated batch billing groups subscribers logically and invoices on any schedule Nested charge tables group similar charges for clarity Invoice localization Credit / debit memo support Millions of payments processed per month New! Coming Soon!

23. demo billing and payments page 24

24. n ew & upcoming features credit/debit memos, retry logic page 25

25. Real World Use Case Zuora at Five9

26. Five9 Use Case Before And After

27. Billing Transformation Before… After… Bill Run

28. Billing Scenarios Consolidated billing All charge types on every subscription Usage feed from outside system Taxation feed from outside system Billing MRR to the parent, LD to the child

29. Five9 Billing Systems Environment

30. Five9 Business Benefits Billing accuracy Automated billing Consolidated billing Usage billing Order processing time reduction Automated payment notifications Staff reduction Scalability

31. Billing Accuracy

32. Consolidated Billing

33. Usage Billing

34. Long Distance Usage Billing

35. Bundling. Fast Order Processing Adding multiple charges on the rate plan makes order entry fast and easy

36. Notification Framework

37. Check out Zuora Academy for more great info and actionable advice. All the info you need to build and run an amazing subscription business. https://www.zuora.com/academy/