A Peek Under the Hood

Zuora’s Subscription Automation Engine

Nicholas Harlow and Keenan SimmonsProduct Management, Zuora

A Peek Under the Hood

Zuora’s Subscription Automation Engine

Nicholas Harlow and Keenan SimmonsProduct Management, Zuora

today’sspeakers

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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 HarlowZuora PM for Payments Processing. Prior lives: technical sales guy; finance & private equity guy, lots of billing experience

Keenan SimmonsFinance 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

agenda

Customer perspective – Intro to Five9 (00:05)Journey to the Subscription Economy (00:25)

Product Pricing and PackagingManaging SubscriptionsBilling and Payments Operations

Real World Use Case: Zuora at Five9 (00:10)Q&A (00:05)

Customer PerspectiveIntroduction to Five9

37% CAGR (2009 – 2015)

Annual Revenue2013

$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

The Simply Smart Contact Center Powered by Five9 Connect

8Company Confidential

Success Across Industries

Billing TransformationBefore… After…

Bill Run

Journey to the Subscription Economy

Zuora: A prospect-to-cash solution for relationship-centric enterprises

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Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace

Pricing & Packagin

gPricing,

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

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

Com

pany

COMPANY LAUNCHSingle product

Simple monthly pricing

PRODUCT EXPANSIONAdd-on productsProduct bundles

INTERNATIONAL GROWTHMultiple currencies

Regional pricing

PRICING OPTIMIZATIONPricing TiersUsage + overagesA/B testing

REVENUE ENHANCEMENTProduct upgradesBilling frequencies

Business Maturity

INFINITE PRICING OPTIONS

journey to the subscription economy key capabilities

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01pricing & packaging

02managing subscriptions

03billing and payments

01pain point: rapidly iterating on product pricing and packaging is a major challenge.

pricing & packagingflexible subscription-enabled product catalog

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powerful product catalogMultiple 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

ComingSoon!

New!

demoproduct catalog

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new & upcoming featurescharge model builder and product bundling in salesforce

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02pain point: initially onboarding subscribers is easy; managing

subscribers as their needs evolve is hard.

managing subscriptionsturn customers into subscribers

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powerful subscription managementEasily 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!

ComingSoon!

demosubscription management

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new & upcoming featuresflexible amendments & suspend/resume

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03pain point: recurring billing and

getting paid as quickly as possible are not trivial.

journey to the subscription economybilling and payment operations

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automated recurring billing and paymentsStreamline and simplify complex recurring

billingGet paid quickly with clear, accurate, detailed invoicesIntegrated tax automation simplifies taxesfeatures 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!

ComingSoon!

demobilling and payments

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new & upcoming featurescredit/debit memos, retry logic

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Real World Use CaseZuora at Five9

Five9 Use CaseBefore And After

Billing TransformationBefore… After…

Bill Run

Billing Scenarios

Consolidated billing All charge types on every subscription

Usage feed from outside system

Taxation feed from outside systemBilling MRR to the

parent, LD to the child

Five9 Billing Systems Environment

SFDCQuote Generation

Subscription Creation

ZuoraSubscription Billing

LD billingProduct Catalog

Revenue Recognition

NetSuite

Virtual Call Center

Merchant Services

CC

$

Bank/ACH

Logisense/BillsoftCDR Mediation

Call $ calculationBillsoft Tax Calculation

Carriers

Provisioning Team

Collector

Five9 Business Benefits

• Billing accuracy• Automated billing• Consolidated billing• Usage billing• Order processing time reduction• Automated payment

notifications• Staff reduction• Scalability

Billing Accuracy

Accuracy

• Automatic data feed• Minimum manual processes

SFDCQuote Generation

Subscription Creation

Logisense/BillsoftCDR Mediation

Call $ calculationBillsoft Tax Calculation

Carriers

Usa

ge $

ZUORAInvoice Generation

Invoice

Consolidated Billing

Consolidated

• By subscription• By account• By PO

Usage Billing

LD usage

License

usage

Invoice

Long Distance Usage Billing

Long Distance Billing

Zuor

aLo

gise

nse

Bills

oft

Calls Rating & Taxing Usage push to Zuora Trigger Billsoft

Usage received Bill Run Invoice generated Invoice updated

with tax Invoice posted

Tax rate get

javascript:

Start

End

Tax rate get

Bundling. Fast Order Processing

Adding multiple charges on the rate plan makes order entry fast and easy

Notification Framework

Most used notifications

• Past due invoice• Payment confirmation• Invoice delivery• Payment method expiration

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/