meet your 2014 growth engine: subscription revenues

Meet your 2014 Growth Engine: Subscription Revenue February 13, 2014

ServiceSource Confidential Information

Today’s Presenters:

Matt Shanahan VP Product Strategy

Ashley Stirrup SVP Product &

Solution Marketing

ServiceSource Confidential Information 2 2

ServiceSource Acquires Scout Analytics

Leading provider of predictive analytics for subscription businesses

Keep More Sell More Know More

ServiceSource Confidential Information 3

Market leader Focused exclusively on recurring revenue for 13 years

Software Hardware Networking Industrials, Healthcare & Life Science

Subscription Revenue

$14.5B Recurring Revenue under management 47 seconds A renewal is closed

LOCATIONS WORLDWIDE:

200+ Engagements worldwide


Big Shift in Customer Purchasing

Own Use

In a Subscription Economy Success Is Driven by Customer Usage


Pay-to-Use Models Growing Rapidly in Subscription Economy


Pay-to-Use Is Driving Growth in Subscription Economy

Unserved Market •  Occasional Users •  Seasonal Users •  Financially-constrained Users •  New Use Cases

Served Market


Renewals

The Subscription Economy Attraction

Initial Sale TIME

Customer Lifetime Value (CLV)


The Subscription Economy Challenge As Market Matures, Recurring Revenue Growth Flattens

$

TIME

Revenue

Customer Acquisition

Rate


Only Way to Maintain Growth in the Subscription Economy

Initial Sale

Renewals

Up-Sells

Cross-Sells

Usage Charges

TIME

90%+ of Revenue Is Guaranteed After Initial

Sale

CLV ($)

Maximize Customer Lifetime Value (CLV)


Secret of High Performing Subscription Businesses

$

TIME

Revenue

Customer Acquisition

Rate

Understanding and Monetizing

Usage


Usage Informs What Levers to Pull When

Initial Sale

Renewals

Up-Sells

Cross-Sells

Usage Charges

Before Sale

CLV

How best to drive

conversion?

Did the customer get good value

from the product or service?

What is time to value?

Is usage meeting

expectations?

Is the service underpriced

compared to usage?

What is the next best offer based

on value derived?

What are the right plans?

TIME


10-15% Revenue Boost Churn ê 50% 2x Profitability

How Do You Get There

Usage Data

Multiple Systems/Data Silos

Uncorrelated

INACCESSIBLE

Usage Capital™

Integrated Datasets

Actionable Insights

PROACTIVE AUTOMATION

Scout®


The Scout® PLATFORM

AUTOMATE Engagement Plays

PREDICT Opportunities to Maximize CLV

INTEGRATE Usage and Subscription Data Scout®

LINK

Scout®

HUB

Scout®

PLAYBOOKS


Scout® Drives Actionable Insights Across the Enterprise

●  On-Boarding ●  Adoption ●  Retention

●  Renewals ●  Trials

●  Cross-Sell ●  Compliance

●  Product Planning ●  Rate Plan Monitoring

●  Provisioning ●  Usage Charges ●  Customer Notifications

●  Advocate Nurturing ●  Cross-Sell ●  Trials

SCOUT SALES

SCOUT CUSTOMER

SUCCESS M

ANAGEMENT

SCOUT PRODUCTSCOUT FINANCESC

OUT

MAR

KETI

NG

scout® PLATFORMScout®

PLATFORM


Scout Makes Your Existing Systems Smarter

SCOUT SALES

SCOUT CUSTOMER

SUCCESS M

ANAGEMENT


OUT

MAR

KETI

NG

scout® PLATFORMScout®PLATFORM


The Scout Value Propositions

●  Increase Retention ●  Increase Account to

Manager Ratio

●  Increase Renewal Yield ●  Increase Up-sell and Cross-sell ●  Increase Productivity

●  Increase Revenue Yield ●  Improve Timeliness ●  Lower Cost of Billing

●  Increase Leads ●  Lower Cost Per Lead

SCOUT SALES

SCOUT CUSTOMER

SUCCESS M

ANAGEMENT


OUT

MAR

KETI

NG

scout® PLATFORMScout® PLATFORM


Scout’s Proven Value

Power of Scout®

é  17% Renewal Yield é  75% Trial Conversions

é  24% Rate Plan Performance

ê 53% Reduction in Churn


Q&A


Maximizing Recurring Revenue

we do it for you we enable you

Cloud Applications Purpose-built cloud applications designed to increase recurring revenue and minimize churn The only hybrid solution that includes Renewal Sales, Customer Success, & Enablement Services

Pay for Performance Selling on behalf of customers, based on performance

Renewals Data and Technology Support for the renewals process with applications, tools, and a data framework

Best Practice Business Process Scalable Expertise

• Data Management and Opportunity Generation

• Sales Strategy and Execution

• Generate Insight and Optimize


Enterprise cloud applications for Recurring Revenue Management

Purpose built system for renewals management

Maximize subscription revenue across the customer lifecycle

Installed Base Mgmt

Renewal Sales

Channel Management

Sales Operations

Analytics

Sales

Marketing

Customer Success

Product Management

Finance


Customer Success Management

Reduce customer churn with proactive outreach

Drive customer satisfaction with a high-touch engagement model

Increase upsell and cross-sell through value selling

Improve product offerings with customer feedback


Customer Success Management Powered by Scout

•  More targeted and productive conversations

•  End user usage analytics

•  Feature discovery

•  Customer advocacy

•  Overage notifications

•  Increased customer lifetime value

•  Broader end user adoption

•  Increase use of sticky features

•  100% customer outreach

New & Enhanced Capabilities Results


Recurring Revenue Management

•  Upsell

•  Cross-sell

•  Compliance tracking

•  Onboarding

•  Training

•  Advocate nurturing

•  Save plays

•  Sales plays

•  Channel Mgmt

•  Playbooks

Grow Renew Retain


Solution offerings for traditional, SaaS & mixed businesses

Grow Renew Retain

Maintenance

Warranties

Support

Subscriptions


Complete solution for Recurring Revenue Management

Renewal Sales

Renewal management and analytics

Predictive analytics for subscription businesses

Customer Success Enablement

Implementation Training Data Services

Applications

Professional Services

Managed Services


Q&A

ServiceSource Confidential Information 28 ServiceSource Confidential Information

Thank you!

meet your 2014 growth engine: subscription revenues

Business

customer usage

brecurring revenue

subscription economy

subscription economy

recurring revenue growth

clvintegrate usage

monetizing usage

usage chargesclvwhat