why (and how) successful cfo’s are reinventing their billing system
DESCRIPTION
Successful execution of a subscription strategy creates demands that challenge billing departments and CFOs. But successful CFOs turn this challenge to an opportunity and reinvent the billing systems as a key source of customer intelligence and insights. In this presentation: - Why automated recurring billing and collections is so critical to executing a successful subscription strategy; - How detailed customer analytics that track performance by channel, geography and products can help you make sounder business decisions; - How our easy and flexible a-la-carte bundling allows you to create, price and discount products into subscription plans. - And More!TRANSCRIPT
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Why (and How) Successful CFOs are Reinventing their Billing Systems
February 4, 2013
Steve Adams
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• Subscriptions aren’t just for newspapers…– Examples of Retail Subscriptions
• Challenges of implementing subscriptions
• 5 Benefits of Automation
• How Fusebill can help – Quick Demonstration
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The expanding Subscription World
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It’s one of the simplest of truths For a subscription business to make
money, it must bill and collect from customers.
bill
collect
make money
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Too bad it’s simpler to say than do
The devil’s in the details of requirements and architecture.
Traditional systems are slow, inaccurate and unable to scale
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Challenges
• Accounting• Automation• Accuracy• Agility• Analytics
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Advertise
Web Visits
Conversions
$$$$$
Build Repeat Business
One Decision – multiple orders
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Order•Online•Customer Service
Get Paid
•Credit Cards•Invoices•PayPal
Ship
Linear Processing Flow
Linear ERP SystemsTransactional
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Transactional back office systems fail
9
Upsell
Cross-sellRenew
Recurring Billing
Multiple Concurrent
Subscriptions
Usage Based Charges
Credit CardExpiry, Fraud, etc.
Initial SalesProcess
Traditional transactional systems don’t support recurrence
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So What Happens?
• Improvisation– Track in Excel– Ticketing systems
• Pilot Projects– Quick and Dirty development projects
• Or long and twisted development projects
Security Risks
Errors & Revenue Leakage
Lack of Visibility
Barriers to Scale
Offline Accounting
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Accounting
• Accurate Taxes
• Discounts, Write-offs
• Earned vs Deferred Revenues
• Cash vs Revenue
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Security Services - Product Bundling Example
• Hardware– Delivered when project starts– Invoiced (30 day terms)– Revenue recognized on shipment
• Integration project (development services)– Paid in installments– Recognized over life of contract
• 12 month subscription– Paid quarterly, in advance– Recognized over contract
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Complexities of Bundling & Revenue Recognition
ActiveWin Integration
Services
Cash
EffortEarnRevenueMonthly
CollectQuarterly Delay Start
EarnRevenueMonthly
Ship & EarnRevenue
Collect
Subscription
Hardware
IntegrationServices
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The key benefit of automation is automation…
• Reduce people power – increase ability to scale
• Outsource security issues– Note that most shopping cart platforms don’t store
credit cards
• Process Payments – Automate collections, retries, client notifications
• Process renewals – and expiries
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Accuracy
• Get paid before shipping– Properly calculate amounts (discounts, coupons, taxes)– Collect automatically
• Notify downstream systems of problems!
– Invoicing and Account statusing
• Ship the right things– Manage change– Customer self-service– Central view of customer orders
• Stop delivering …
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Agility – cope with pricing changes
• Pro rating
• Upgrade Options
• Variations
• Promotions / Coupons
• Customer lifecycle:– Cancel– Renew– Options
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Analytics
• So, what are we selling anyway?
• What geographies are performing well?
• What online programs bring us long term customers?
• How long do customers subscribe for?
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Brief Demo – Monthly Soap Delivery
Basic offering – soap and shampooPremium Plan – Salon quality soapsOptions to purchase extra or upgrade