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Transi0oning  to  a  Subscrip0on-­‐based  Business  Model:    

A  Checklist  for  Success    

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Jon  Ge@nger,  SVP  Marke0ng   Ashley  S0rrup,  SVP  Product  and  Solu0on  Marke0ng  

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10   Chance  customers  will  become  loyal  if  they  are  not  loyal  within  the  first  90  days  a8er  provisioning  

3.1  

100   Percent  of  profits  from  exis>ng  customers  for  subscrip>on  businesses    

Years  before  a  customer  become  profitable  

Subscrip0on  businesses  by  the  numbers  

10%  

3.1  

6x  

Subscrip0on  businesses  by  the  numbers  

Chance  customers  will  become  loyal  if  they  are  not  loyal  within  the  first  90  days  a8er  provisioning  

More  expensive  to  acquire  a  new  customer  vs.  renew  an  exis>ng  customers  

Years  before  a  customer  becomes  profitable  

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Grow  Renew  Retain  Acquire  

•  What  is  the  right  plan?  

•  How  to  transi0on  from  free  to  paid?  

•  What  are  your  compliance  and  en0tlement  policies?  

•  Is  usage  mee0ng  expecta0on?  

•  Are  customers  comple0ng  the  on-­‐boarding  and  training?  

•  Are  customers  seeing  the  full  value  of  the  offering?  

•  What  is  the  correla0on  between  usage  and  price?  

•  What  payment,  pricing  and  terms  are  available?  

•  What  are  the  upsell  &    cross-­‐sell  opportuni0es?  

•  What  is  the  next  best  offer  based  on  derived  value?    

Subscrip0on  customer  lifecycle  

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Metrics  to  measure  performance  throughout  the  lifecycle  

Grow  Renew  Retain  Acquire  

•  Customer  Acquisi0on  Cost  Ra0o  (CACR)  

•  Breakeven  point  

•  Free  Trail  Conversion  Rate  

•  Cancela0on  Reason  Analysis  

•  End  User  Adop0on  

•  Usage  Analy0cs  

•  Renewal  Rate  

•  Churn  Rate  

•  Customer  Renewal  Cost  Ra0on    (CRCR)  

•  Upsell/Cross-­‐Sell  Rate  

•  Customer  Life0me  Value  (CLV)  

•  Conversion  Reason  Analysis  

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Automa0ng  the  customer  experience  

•  On  boarding  

•  Service  enablement  

•  Coupon  redemp0on  

•  Single  view  of  your  customers    

•  Mul0ple  plan  offerings  

•  Self  service    

•  Assisted  

•  Offer  triggers    

•  Plan  op0miza0on  

 

Grow  Renew  Retain  Acquire  

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Ac0onable  tasks  based  on  segmenta0on  

LOW  

MED  

HI  

High  Risk      •  Immediate  save  play  •  Adop0on  plays  /  on-­‐boarding  plays    •  High-­‐touch  customer  engagement  

   Moderate  Risk  

 •  Iden0fy  any  specific  factors  (e.g.  compe00on)  •  Adop0on,  training,  or  upsell  plays  •  Watch  list  with  quarterly  contact  

   Low  or  Very  Low  Risk  

 •  Low-­‐touch  renewals  play  120  days  before  expira0on  •  Self-­‐service  op0ons  with  annual  customer  check-­‐ins  •  Cross-­‐sell  play  •  Collect  quan0ta0ve  characteris0c  data  to  confirm  segmenta0on  

 

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Automa0on  vs.  high-­‐touch  engagement  

Determine  the  best  type  of  customer  engagement  based  on:  

•  Usage  

•  Subscrip0on  value    

•  Poten0al  CLV  

•  Health  score  

 

 

by  engaging  with  customers  on  a  quarterly  basis  

   

8%  

Consider  role  specializa@on  based  on  business  needs  and  complexity  of  your  solu0on  

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Analy@cs  

Recurring  Sales  

Data  &  Integra@on  

Recurring  Revenue  

Current  Recurring  Revenue  Alliance  Members    

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How  we  can  help  

*Based  on  internal  studies,  companies  who  worked  with  ServiceSource  reduced  churn  by  an  average  of  9  points  **ServiceSource  internal  study  comparing  sales  produc>vity  before  and  a8er  using  Renew  OnDemand  showed  an  average  increase  of  20%  

Best  prac>ce  process  &  industry  benchmarking  

Increase  renewal  rates  and  efficiency      

Op0mize  subscrip0on  revenue  throughout  the  customer  lifecycle  

 

Maximize  performance  with  our  experts  in  customer  success  and  renewal  sales  

Op>onal  

             

20%  increase  in  sales  produc0vity**  

15pt  improvement  in  renewal  rates*  

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The  Aria  Difference  

Make  More  Money  •  Op0mizing  the  life0me  

value  of  customer  rela0onships  

•  The  business  is  growing  and  valued  by  Wall  Street  

Keep  Customers  Engaged  •  Delivering  a  consistent  

high  quality  customer  experience  

•  My  informa0on  always  presented  in  context  

 

Rela0onship  Commerce  

Ac0ve  Orchestra0on  

Adap0ve  Selling  

Single    Customer    View  

Easier  to  Manage  •  It’s  in  the  Cloud!  •  Pushes  Informa0on  •  No  rip  and  replace  

Enterprise  Cloud  

Solves  Big  Problems  •  Handles  scale  and  

complexity,  security,    reliability,  compliance  

•  High  Performance  Opera0on  

All  Contents  ©  2013  Aria  Systems  

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Q&A