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Guillaume  Vives  SVP,  Product  &  Professional  Services  

Scaling  Sales  and  Billing  Opera;ons  in  the    Subscrip;on  Economy  

@gyvives

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In  The  Subscrip;on  Economy,    Focus  Is  On  Rela;onships  

Product Relationships

BUY NOW SUBSCRIBE

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Quo$ng   Ordering   Fulfillment/Shipping   Invoicing   Payment/

Collec$on   Accoun$ng  

The  Quote  to  Cash  Process  in    the  Subscrip;on  Economy  Traditional one-time charge economy

What is different with the Subscription Economy?

Quote   Order   Subscrip4on  

Revenue  event  

Revenue  event  

Revenue  event  

Invoice   Payment  

Invoice   Payment  

Invoice   Payment  

Revenue Recognition Upsell  Upsell  

Upsell  

Order  Order  

Order  

Provisioning  

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Quote  to  Cash  to  Accoun;ng  in    the  Subscrip;on  Economy  

Sales Ops (aka Front End)

Billing Ops & Revenue Ops (aka Back End)

Quote   Order   Subscrip4on  

Revenue  event  

Revenue  event  

Revenue  event  

Invoice   Payment  

Invoice   Payment  

Invoice   Payment  

Revenue Recognition Upsell  Upsell  

Upsell  

Order  Order  

Order  

Provisioning  

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Two  Sides  of  the  Same  Coin  

•  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells

•  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition

Subscription

Sales Operations

Billing & Revenue Operations

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Two  Sides  of  the  Same  Coin  

•  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells

Sales Operations

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Sales  Opera;ons:  The  Fundamental  Changes  Your  Sales  Organiza;on

Reducing  cost  of  sales  1  

2   Con4nuous  Revenue  Increase  of  Install  Base  

3   Op4mizing  Sales  Team  for  Max  Efficiency  

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Sales  Opera;ons:  Sales  Compensa;on

COO

How  do  you  deal  with  churn  or  downsell?  

What  are  your  business  objec;ves?  

Market  Capture?  

ACV  on  bookings  or  collec$ons          is  a  good  base  for  the  compensa$on  plan.  

Long-­‐term  success  &  commitment?  

TCV,  upsells,  and  renewals          are  good  elements  of  a  compensa$on  plan.      

How  do  you  pay  your  sales  reps?  

Dimensions  Available:    

ACV  

TCV  

Contracted  Ramp  

Upsell  

Usage  /  Overage  

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Marke$ng  Automa$on  

Freemium    Website  

Big  Data  

Trend  &  PaNern    of  Usage  

Provisioning  

En$tlement  

Online  Sign-­‐up  &  Account  Mngmnt  

CRM  

CPQ  

Sales  Opera;ons:  Systems  and  Automa;on

Marke$ng     Usage  Analysis  

Provisioning  Quo$ng  automa$on  

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Sales  Opera;ons:  The  Metrics  That  MaPer

•  Cost  of  Sales  Ops/Sales  –  From  1/2  to  1/12  

•  Opera4onal  Metrics  –  Web  visits  to  hand  raise  –  Hand  raise  to  opportunity  

(Freemium?)  –  Qualified  Freemium  users  –  Opportunity  to  close  –  Upsell,  Add-­‐ons:  MRR  growth  per  

customer  –  ACV;  TCV;  Contracted  Ramp  –  Down-­‐sell  and  Churn  

Awareness to Hand Raises

Hand Raise to Opportunity

Qualified

Closed

New Customers MRR Growth Via

Upsells & Add-Ons

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Two  Sides  of  the  Same  Coin  

•  Quoting •  Ordering •  Sales Commission •  Subscription Management •  Provisioning •  Upsells

•  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition

Subscription

Sales Operations

Billing & Revenue Operations

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Two  Sides  of  the  Same  Coin  

•  Invoicing •  Collection/Payment •  Churn Prevention •  Revenue Recognition

Billing & Revenue Operations

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Billing  &  Revenue  Opera;ons:  Billing  Organiza;on

•  Billing processes •  Invoice complexity •  Payments

Scaling and Automation

This is a mindset change •  Churn prevention (with

Customer Care) •  Upsell opportunity (with Sales)

Build Customer Relationships

Understanding the subscription is critical to managing a complex Revenue Recognition process.

Managing a Complex Process

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Billing  &  Revenue  Opera;ons:  The  Metrics  That  MaPer

Revenue Recognition

Deferred  revenue  balance  MRR  Growth  

DSO / Collections $ of Billing Operations

per $ of MRR

Time to Bill Churn Prevention

= Customer

Satisfaction

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Sales  &  Billing  Opera;ons  Need  to  Be  Integrated/Automated  to  Be  Successful

ü  Transactions growth ü  Customer interactions ü  Sales channels

ü  Cost of sales ü  Introductory price point ü  Cost of operations

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Lessons  From  Our  Customers  

1.   Consider  puSng  Sales  Ops  and  Billing  Ops  together  

2.   Remember  that  Commerce  is  about  rela4onships  so  interac4ons  are  important  

3.   Commerce  is  mul4-­‐channel  

4.   It  needs  to  be  designed  as  an  end-­‐to-­‐end  process  around  the  subscrip4on  

5.   Without  automa4on,  there  is  no  scale  

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The  COO  Perspec;ve  Meet  The  Panelists  

Zuora Ben Kwon

VP, Chief of Staff

LivePerson Rob Janecek

Director of Business Systems

Versature Jonathan Moody

COO

LinkBermuda Winston Morton

VP IT @winstonmorton

Intralinks  Adolfo  Carreno  VP  Informa$on  Technology  &  Architecture  

IPR  Interna4onal  Kelly  Torrence  

EVP,  Technology  &  Security  

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Round  Table  –  Share  Your  Input  

1.   Renewals  –  How  do  you  do  it  today?  Key  challenges?  Lessons  Learned?    

2.   Sales  Ops  and  Billing  Ops  Collabora4on  –  Key  opportuni$es  and  challenges  

3.    (Bonus)  Sales  compensa4on  –  What  works  best:  model  focused  on  market  capture  or  long  term  revenue  op$miza$on  

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END