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Create a Subscription with client commitment

rgoibert
Senior Tutor

Create a Subscription with client commitment

Hi, 

 

We would like to create subscriptions with a client commitment. 

This means for instance that the client will subscribe an evergreen subscription but with a 6-month commitment. 

 

Is there a specific way to handle that in Zuora ? I have thought about :

- a termed subscription (6 months) with AutoRenew to evergreen 

- an evergreen subscription directly and a custom field to store minimal commitment

 

But this means that in all other existing process they will have to adapt (the termed subscription is not really termed, the client needs to think that this is evergreen with 6 months commitment). Termination end other processes will need to be deactivated specifically.

 

My question is : is there a way to do that in Zuora in standard way ? 

If not how is the 6 months engagement revenue counted in standard dashboards and reporting ? As for the company this should be seen as future revenues that are secured

 

Thank you in advance,

2 ACCEPTED SOLUTIONS

Accepted Solutions
perswardh
Guru

Re: Create a Subscription with client commitment

Hi,

 

Maybe I am missing something here but to me it sounds like option one that you are proposing the standard Zuora way of doing this. A termed subscription is a commitment by the customer. We use this in the same way. We have a termed subscription with the term corresponding to the commitment period. Since the client commits we also give them a discount for the commitment period. We set it up as Renew to Evergreen and then it will continue with the same billing period as the initial term, e.g. monthly. When you use termed subscription you get the option when cancelling the subscription to select term end.

 

Hope this answers your question.

 

Kind regards

Per

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perswardh
Guru

Re: Create a Subscription with client commitment

Correct! We have a similar setup where we let either customer service or the customers themselves through self service cancel their subscriptions. If the termType of the subscription is TERMED we use the cancellation option TermEndDate. I think this is something you could do as well.

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4 REPLIES 4
perswardh
Guru

Re: Create a Subscription with client commitment

Hi,

 

Maybe I am missing something here but to me it sounds like option one that you are proposing the standard Zuora way of doing this. A termed subscription is a commitment by the customer. We use this in the same way. We have a termed subscription with the term corresponding to the commitment period. Since the client commits we also give them a discount for the commitment period. We set it up as Renew to Evergreen and then it will continue with the same billing period as the initial term, e.g. monthly. When you use termed subscription you get the option when cancelling the subscription to select term end.

 

Hope this answers your question.

 

Kind regards

Per

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rgoibert
Senior Tutor

Re: Create a Subscription with client commitment

Hi Per,

 

Thank you for your response a return on experience.

We use Salesforce as to manage Subscription lifecycle + different front-ends (websites, mobile app, in-store app) to display different information and integrate everything by API. 

This means for instance that the termination process we have must include the "intelligence" to cancel at term end (in case of this specific type of subscriptions) rather than immediately as we have today ? 

perswardh
Guru

Re: Create a Subscription with client commitment

Correct! We have a similar setup where we let either customer service or the customers themselves through self service cancel their subscriptions. If the termType of the subscription is TERMED we use the cancellation option TermEndDate. I think this is something you could do as well.

View solution in original post

rgoibert
Senior Tutor

Re: Create a Subscription with client commitment

Thank you, I think this is what we need to do. We just handle one-off subscription that are termed also but can be cancelled immediately upon client request. But in any case, the customer care system needs to handles those logic and business rules.