Written by @Erika
In short: Subscribed London rocked. John Phillips, General Manager, EMEA at Zuora, started by introducing Zuora: 1000 customers and operations in 18 different companies. Zuora has made a mission to build out the most globally available product thats locally awareand Subscribed London is a proofpoint that we are The Subscription Economy Leader for the world.
As John Phillips, so eloquently opened the event at the awesome Tobacco Dock venue: Six years ago we started: daring the world it was going to change. Now we are worldwide and have over 200 European companies working with us on their journey to deliver subscriptions. The Subscribed event tour has made an impact at home with our signature San Francisco Subscribed, traveled from Melbourne to Sydney, lit up NY, and, most recently, cat-walked across Paris, but now we come back to salubrious Wapping for our biggest and best Subscribed London yet!
The day started with an inspirational Diversity in Tech breakfast (check out the details here).
Then Zuora CEO Tien Tzuo took to the stage, joined by John Ingram, CEO and Co-Founder of Mortgage Gym, and Tom Bucklar, Director of IoT and Digital for Caterpillar, to prove the point that subscriptions arent limited to movies or magazines; they are everywhere, across all industries and impacting all of us in our daily lives. We are all living in a different world now: the world of the Subscription Economy.
In addition to Tiens inspirational keynote and a great overview of the Zuora Central platform from Tom Krackeler, SVP Products, Zuora, the day was jam-packed with deep-dive breakout sessions across 5 tracks from Transformation to Finance, fantastic eats, enthusiastic networking, a traveling band, awesome conversations throughout our partner ecosystem, and, even, a couple of gigantic canvas garden chairs.
Itd be impossible to summarize all the gems that came out of todays great presentations and discussions, but here we offer you just a few highlights:
The Subscription Economy offers freedom: Freedom from products, from obsolescence, from barriers of time and location, freedom from one size fits all, freedom from you can have any color you wantas long as its black. Freedom to try, buy, upgrade, downgrade, pause, cancel, rejoin. Tien Tzuo, CEO
We wanted to reinvent the experience of getting access to a mortgage. This is the most important purchase decision in a consumers life. Regulations have changed in the last few years and made that worse. We wanted to change that and empower everyone in the transaction chain. Its a whole new economy. John Ingram, CEO and Co-Founder of Mortgage Gym
The key to any successful company is being customer-centric. As we work with our customer base, its driven us more into a service business. Tom Bucklar, Director of IoT and Digital, Caterpillar
The question is: How do you create value off the data you collect? We had a customer with over 10,000 assets who needed help connecting all their assets. We put it all together on one screen. A year later, they had increased utilization on those assets by 15%. Tom Bucklar, Director of IoT and Digital, Caterpillar
It used to be about pricing now you have to talk about value based pricing, outcomes. How can you find different ways of pricing and packaging to reflect the value that customers see. And as they grow with you, how does your pricing grow? Tien Tzuo, CEO, Zuora
Technology is the problem. 72% of Fortune 500 companies feel like the single greatest challenge limiting their growth is their technology (from a 2016 Fortune survey). Inefficient operations, terrible customer experiences, unnecessary overhead, increased compliance risk, stalled innovation, stunted growth, vulnerable to disruptionyour business is stuck. Tien Tzuo, CEO, Zuora
We must ask more of ourselves less of the technology. Its about humans, teams, who you serve. Take a human approach to transformation. Hugo Pito Campos, Managing Director, Accenture
Face the fact that youre no longer seeing the same thing to your clients. Think beyond the box, product, manual, and it works. Does it work on my phone? No. People wont go for this. Digital transformation doesnt change things over night but slowly erodes the relevance of the product, and at some stage its no longer to recover the relationship with your clients. Hugo Pito Campos, Managing Director, Accenture
Only 24% of companies are confident in their quote to cash architecture. Alvina Antar, CIO, Zuora.
Its not natural for people to think experimentation. I said to HR we have to fail fast. HR said succeed fast. Its a deep transformation, its culturel. Find champions in all the areas of the company. A champion is someone who believes in it. Pierre Yves-Noel, Director Cloud Services and Subscription Business Models, Alcatel-Lucent Enterprise
When new companies disrupt, thats cool.. but more interesting is when legacy companies disrupt, because they have to transform as well. Martin Whitlock, CTO, Telenor Connexion
ARR, conversion, churn, burn these metrics are new. If you cant measure, you cant manage a business, all the way down through the partners so you can manage your effort and your rewards. Simon Minett, Head of Global Operations, Unify
From cash to cheques to cards to PSD2 to blockchain, the payments landscape is rapidly evolving and the next wave of change is away from banks. George Britton, Head of Enterprise UK at GoCardless
Net retention is a critical metric for subscription businesses. Upsell is a key factor. Jonathan Brown, Sales Engineer, Zuora
The sheer volume and complexity of data makes IFRS 15 implementation even more challenging. And IFRS isnt just an impact on finance at the back end of the process. Theresa Germellou, Cloud Advisory, Deloitte
One of the pet peeves for our data scientists is uninterpretable data, because if its uninterpretable its not actionable. Rachel English, Director of Customer Experience, Zuora
Its a humans job to make interventions that improve outcomes. In other words, unfortunately my Fitbit wont lose weight for me. Its my job to understand the data and then make actions based on it. Rachel English, Director of Customer Experience, Zuora
In tech 25% of your sales team brings in 80% of your revenue. You cant afford to lose these people. Erik Charles, VP Product Marketing, Xactly
People can treat incentives like coffee and tea in the breakroom: we know we have to have it but were not going to spend on the pricey stuff. Companies often have the same approach to sales incentives: We know we have to offer incentives, but do we really have to offer the good stuff? Yes you do! Erik Charles, VP Product Marketing, Xactly
Simplify everything. ARR drives all. Once you know your ARR level, you can go and make some decisions. This is fundamentally different from thinking about revenue. Our GAAP financials are at the end. If we get the subscription stuff worked out right, the GAAP stuff will fall out. Tyler Sloat, CFO, Zuora
Acquisition, monetization, retention which one do you really want? There has to be an inherent tradeoff. Mark Bilge, Managing Partner, Simon Kucher & Partners
The heart of solving that trade off triangle is the concept of differentiation. Good pricing and packaging almost inevitably offers multiple offers. That may sound complicated and complex. But the fact is that simple pricing and packaging isnt very profitable. When it comes to monetizing the subscription economy (of which pricing is a piece) one size fits all is a losing strategy. Mark Bilge, Managing Partner, Simon Kucher & Partners
The holy grail in the world of payments is frictionless payments. The payment is just the thing that happens at the end when you want a thing. As retailers and service providers, you want to provide compelling reasons for the decisions to be made. The last thing you want is for the payment process to get in the way. Frictionless payments are a huge part of the payments industry. Nick Telford-Reed, Worldpay
Dont ever let a customer churn without finding out why they did. Thats gold for determining future churn risk. Rachel English, Director Customer Experience, Zuora
We are listening to our members and growing our business entirely based on the routes that they want to go. The strategy is to create a membership type of community. How does that play out. When youre a member with us, youre treated like a person. Ultimately we know all of our members personally. This makes us very accountable. They expect a certain level of service. Natalie Torin, Partner Director, Surfair
David Everyone here is transforming an established industry. How do you move a business along the path to transformation?
If you have the right leader, they will say Find the rocket ship in a big company. Where can you innovate from within? Were building the ship while were flying out. As you create the rocket ship within the big company, you have the ability to be a startup with the security and investment of a large company. We do a huge amount of customer research. Before we even think about price point, well test it. We are testing and learning and failing and getting it right and failing and getting it right again. Jo Cox, Commercial Director, Hive Connected Homes
Its all about journalism at the end of the day, but we still need to be able to deliver change and to pivot around the information and data that were receiving from our customers. Nigel Miller, Director of Customer & Web, Telegraph
The most important metrics for us are engagement level and satisfaction level. We like to see the customer interaction. We like to see them being curious about our offers. Ioannis Savvidis, Head of Global Hotelier Care, Trivago
When it comes to taxes, customers that dont automate, operate at risk. As business owners, there are a few things under your control: file returns on time, file correct returns based upon your registration, claim deductions only consistent with your business, if youre going to be requesting refunds, authorities will wonder why. If youve ever been audited you will be again. These are things that you can be on top of.- Sacha Wilson, Avalara
The days of running your business on a monolithic ERP are over. ERP is built around the concept of a financial center. CRM is designed around the concept of a sale. Zuora Central is built around the concept of the subscriber. More than ever you need a single view of who your customers are so you can serve them, across all your product lines. Tom Krackeler, SVP Products, Zuora
Put aside the boring stuff of turning IoT on and off, and get living. Weve shifted from a product center to an emotional-led base. To get folks to subscribe you have to tap into this emotional center. Why would someone bother paying Hive a monthly fee? Jo Cox, Commercial Director, Hive Connected Homes
Engagement and churn scores analyze account actions and usage data to predict renewals, upsells, downsells, and churn. But what data can you trust and what data will be useful for your organization. Zuora Insights gives you the ability to click into what drives your particular business. Simon Dyer, Head of Customer Success, EMEA
ASC 606 and IFRS 15 requires companies to take a new 5-step approach to revenue recognition: Identify the contract(s), performance obligations, determine x-action price, allocate x-action price, recognize revenue. RevPro is defined with these 5 steps in mind. Tom Krackeler, SVP Products, Zuora
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