Configure, Price and Quote with Zuora for Salesforce
Learn how to CPQ with Zuora for Salesforce’s Latest Release
Nathan CreswellProduct Director, ZuoraHarrison RileySenior Manager, Business Systems, Okta
Jake RandallVP Business Operations, Okta
Configure, Price and Quote with Zuora for Salesforce
Learn how to CPQ with Zuora for Salesforce’s Latest Release
Nathan CreswellProduct Director, Zuora
Harrison RileySenior Manager, Business Systems, Okta
Jake RandallVP Business Operations, Okta
askyourself
How many people here use Zuora for Salesforce ? ?
page03
Problems in the Front OfficeDoes this sound familiar?
page04
How do I handle billing and rev rec complexities from
Subscription Quoting?
How do I reduce Quote/Order errors?
How do I better capture
renewal and upsells
potential?
How do I deploy new packages and pricing quickly?
How do I prevent a single point of failure in my
Systems?
How do I scale my reps for growth?
How do I provide a consistent
customer experience across
channels?
How do I model complex discounts and approvals?
What does Quoting for Subscriptions mean?
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01 Fight for Customer EngagementSubscription companies have to constantly prove their value to the customer
03 Earn the Customer’s TrustOfferings give clear value from product to product and pricing and differences are obvious
02
Maximize Lifetime ValueProving value also includes leveraging ways to grow their usage of your product or service
04
FlexibilityNeed an end to end system that can be flexible
01
FIGHT FOR CUSTOMER ENGAGEMENT
All Subscription companies must prove their value because if a relationship is recurring, you need to prove every month why
you deserve their business
Prove ValueAt Every Stage
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Quote for your Assisted Sales Channel.
Be Guided to the right Products and Prices.
Give the right discounts and approvals.
Produce clear and transparent Quoting templates for your
customers. Show Features.
QuoteCreate a record of your
relationship with the customer.
Auto renew that relationship.
Accept subscriptions from different channels.
Let your front office know the services customers
are subscribed to.
SubscribeAccurate and automated
recurring billing.
Correctly formatted invoices.
Answer: what am I paying for again?
Reflect those Invoices to the front office.
Resolve Invoice disputes.
BillAccept any type of
payment anywhere.
Accept multi country and multi currency payments.
Provide Refunds from the front office easily when
necessary.
Pay
The Customer
02
MAXIMIZE LIFETIME VALUE
The Upsell becomes far more important as now you have many opportunities to expand the customer relationship.
Real Customer Example – Moving from Perpetual to Subscription Software
Perpetual SoftwareCustomer has existing Perpetual
Software products
Provide 20% DiscountFor moving from Perpetual to SaaS Software
Remove Perpetual Software
Add SaaS OfferingAdd Product Amendment
Remove Product Amendment
03EARN THE CUSTOMER’S TRUST
Offerings and Editions must be have clear pricing and packaging differences so that a customer can easily see an upgrade path, even if they cannot upgrade today
Edition Strategy
04FLEXIBILI
TY
A flexible system is needed that can align to these kind of Quoting requirements
CPQ is Different for Subscriptions
New Subscription
Amend Subscription
Renew Subscription
Cancel Subscription
New
Upsell
Renewal
Churn
All-New Zuora for Salesforce Release
Includes:
Focuses on supporting the pricing and packaging needs of mature subscription businesses. Deliver CPQ-like functionality in a simple and fully integrated package. Quotes v7.x and 360 v3.x.
Guided Selling Flexible Pricing models
Quoting with approval workflows
Proposal and Contract management (3rd party)
Subscriber Lifecycle Management
Subscription Metrics and Insights
Products and Bundle Configuration
Redesigned Guided Selling Product Selector
Product Selection and Pricing Rules Engine
Introducing Okta
page015
Harrison Riley, Senior Manager Business Systems
Jake Randall, VP Business Operations Okta
Employee SSOto Apps
MFA for Apps or VPN
HR-drivenIT Provisioning
Employee System of Record
Single Customer Profile
Connect to Distributor
& Supplier Identities
Partner/Customer SSO Across Sites
Enterprise Federation for Your Service
Secure Mobile Devices
Provision Mobile Devices
Identity for Employees
ConnectingCustomers& Partners
Mobility Management
$100 (Employees)
$80 (Support)
$2,000 (Customers) $2,770
ARR+ + =$590
(Upgrade EEs)+
213
Silver Edition Gold Edition
+4M
+8M +10
M+$$
Platform
Employee SSOto Apps
MFA for Apps or VPN
HR-drivenIT Provisioning
Employee System of Record
Single Customer Profile
Connect to Distributor
& Supplier Identities
Partner/Customer SSO Across Sites
Enterprise Federation for Your Service
Secure Mobile Devices
Provision Mobile Devices
Identity for Employees
ConnectingCustomers& Partners
Mobility Management
$100(500 Users)
$217(Upgrade)
$150(+ Users) $3,200
ARR+ + =$2,733
(300k MAUs)+
313
“Freemium” ExternalGold Edition
+18M
At Renewal
+26M
+30M
CPQ isn’t a “tool”, it’s a strategy
Pricing and packaging (read: configure, price, quote) can unlock success in your subscription business and help you maximize key metrics:
1. Lifetime Value (LTV)2. Customer Acquisition Cost (CAC)3. Cost to Serve (CTS)
CPQ Challenges at Okta
Product Marketing
Sales
What if we could………?
• Quote products the same way we talk about pricing and packaging?
• Enforce quoting rules that we know make customers successful?
• Automate a segment of our transactions?
• Do this all ourselves?
Protect & Pay for Strategic Assets
Product Users Price per User
Term Length (Months) Annual Total
SSO 100 $2 12 $2,400UD 100 $4 12 $4,800
Prov 100 $1 12 $1,200$8,400
Support - 15% of ARR 12 $1,260
Support Pricing & Discounting Requirements:
1. Support is priced at 15% of ARR 2. Minimum value is 3K3. If ARR > 20K, support must be attached4. If discounted, approval workflows should fire5. Quote should be locked until approved
Support - Minimum 3K 12 $3,000
Promote Customer Success & Retention
CPQ Rule
-
Require Basic
Require Silver
Require Gold
Prompt Custom PS Package Creation
# of Users
1-24
25-249
250-499
500-999
1,000+
Recommend PS Package
Customer
Basic
Silver
Gold
Tailored
Retention Rate with PS Attached
-
96%
92%
90%
87%
Retention Rate w/o PS Attached
-
87%
78%
71%
62%
Disclaimer: This is NOT real data
Automation – all orders aren’t equal
Extend purchasing experience to OktaReduce dependency on human intervention
Customer Acquisition
(Closed Loop Order)
Batch BillingAuto Renew
(lack of) CPQ Extensibility Today
CHAOS!
CPQ Extensibility Tomorrow
The power is in our hands!
Introducing Okta
page026
CPQ Limited Availability Customer
Implementing latest version of Quotes and Rules
5 Week Implementation with some Services Assistance
Okta
BUNDLING - PRODUCT CATALOG CONCEPTS
• To provide value to the Customer, first understand your own Products
• What you sell, typically a SKU• Features - How you describe the Product, Product Attributes that do not “own” a
Price • e.g. Color, Size, Weight
• Product Rate Plans/Charges - How you Go to Market with pricing • e.g. Monthly vs Annual Plan, Setup Fees plus Recurring Fees, 3 Month Discount then 12
Months Normal Pricing
• Many customers have created Products as not real Products, but “Categories” or “Families”
Products
Product Rate Plans
Simple Bundle
*Features exist at each Product level*Rate Plans only at top level
Road Warrior Bundle
Vehicle Diagnostics
Roadside Assistance
Monthly Rate Plan/$50
Base/Add On Example*Rate Plans and Features exist at each Product level
Music Lover Package
Music Services
Spotify
Monthly Rate Plan/$20
Pandora
Monthly Rate Plan - $6
Monthly Rate Plan - $5
Editions / Bundling HybridRoad Warrior
Bundle
Vehicle Diagnostics
Roadside Assistance
Music Lover Package
Music Services
Spotify
Monthly Rate Plan/$20
Pandora
Monthly Rate Plan - $6
Monthly Rate Plan - $5
Monthly Rate Plan/$50
RULES - CONCEPTS
• A rule allows you to automate product and pricing changes on your Quote
• To update pricing e.g. Add a 20% Discount when 2 Products are Added
• To add products e.g. Add a Support Product if Software Exists
• To remove products e.g. Remove Support Product if Software does not Exist
• To show a validation error e.g. Show Error if 2 Products are combined
• And you can do these too:• Spread a Header Discount to Charge Level• Update Prices based on Features• And many more…..
RULES - CONCEPTS
If this… Then Do This…CONDITION
ACTION
askyourself
Who is interested in joining the CPQ LA Program? ?
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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/