Measure the health of your subscription business
Chris BrunerProduct Management, Zuora
Jeff BarlamController, LogicMonitor
6 Ways to Measure the Health of Your Subscription Business
Chris BrunerProduct Management, Zuora
Jeff BarlamController, LogicMonitor
emerging trendstraditional responsibilities are changing
page02
Use leading indicators that tell you where you are headed
measure current performance
Target based on deep understanding of subscribers
transform your business
Leverage everything you know about your subscribers
project future performance
why the change?customer relationships drive growth
page03
>20%growth from upsellsThe portion of ACV growth from upsells rises the larger a business becomes, ultimately rising to a quarter of business for companies with more than $25M in revenue
>80%lower acquisition costsThe cost of gaining $1 of new ACV through upsell is a fraction of the cost of gaining the same $1 of ACV by acquiring a new customer
why the change?customer relationships shape trajectory
page04
3 years of MRR growth+ 2% net churn
3 years of MRR growth- 2% net churn
how businesses can respondour viewpoint
page05
understand recurring revenue driversKnow how your business is trending, be able to break down growth into gains from new business and expansion and losses from contraction and churn, and understand how this behavior is changing for each of your cohorts over time.
link the two together to drive growthConnect subscriber identity and subscriber outcomes to gain a world class understanding of where the opportunities in your business lie and how to grow your subscriber relationships.
understand the identity and moments of each subscriberOrganize all of your customer moments (lifecycle events, customer touchpoints, or application behaviors) around a single subscriber identity.
understanding recurring revenue driversa new set of metrics
page06
“Where I’m Headed”Non-GAAP
Accounts ReceivableCashRevenueDeferred Revenue
New customer growth rateAnnual Recurring Revenue (ARR)Changes in ARR (Bookings)ChurnNet RetentionAverage Revenue Per User (ARPU)Growth Efficiency (GEI)
“Where I’ve Been”GAAP
understanding recurring revenue driversan example
page07
What is your business’ health?
What is driving that?
How can we affect it?
understanding business healthguest speaker
page08
Jeff BarlamController,
LogicMonitor
understanding business healthguest speaker
page09
what do you measure and why?
we have been investing in reporting to support thisrecent focus
page010
intuitive way of working with Zuora data new customer-centered data sets
where we are headed nextroadmap
page011
dashboardsVisualize trends and patterns in subscriber behavior in charts and assemble them into dashboards for your teams
calculated valuesDefine custom calculations in reports to support cohort analysis, as of date analysis, and much richer analytics
In reporting and dashboards, seamlessly work across both Zuora data and user data from Insights
integrated analytics
next stepshow to get involved
page012
join la programTake part in early release of our new reporting capabilities.
join design guidance programProvide feedback on designs for our next wave of enhancements.
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/