Happy Business Starts Here

Non Subscription Product Flow

Our company sells both subscription, and physical/non recurring products. The current Z4SF package is very subscription oriented. Has anyone out there done anything custom to dicern bewteen these types of transactions? This has been a big hinderrance to our company in fully deploying. Just trying to get some great ideas brewing. Thank you!

Tags (1)
4 REPLIES 4
Highlighted
Guru

Re: Non Subscription Product Flow

We are similar in that we sell both subscriptions and non-recurring products (though software not physical).

 

We do two things to handle these type of orders:

1. If they are by themselves, we automatically shift the subscription type to evergreen. This prevents it from having an "end date" or needing any form of renewal.

2. We have separate guided selling flows for Subscriptions vs Software Licenses to make the workflow clear to the users.

 

There are still a few quirks we have not divined a perfect solution for yet:

1. The products still belong to a "Subscription" which is a new concept for many of our people.

2. When selecting a one-time product via the guided selling there is still the option to "Select Plan" to pick the rate plan (even though we only have one rate plan for perpetual)

 

Our product SKU and rate plan name match up to keep things clear in the system.

 

We are always looking for ways to improve this (both by customizations or by ideas we can give to Zuora for future inclusion in the product).

Tags (1)
Guru

Re: Non Subscription Product Flow

Hi @bbooth1986 and @feisley, it's been a couple years since this post and I was wondering if either of you have any updates on how you are managing customers who purchase perpetual products in the Zuora Subscription realm?  Do either of you have a corresponding maintenance recurring charge that is sold along with the perpetual one-time charge?  And if so, how are you managing that "renewal" or next year's payment?

 

Our Use Case: We have a product which is a perpetual software license (one time charge) with a maintenance charge (annual recurring charge).  The current structure is set up on a 12 month termed subscription.  We manage our subscriptions via quotes in salesforce.  A renewal quotes is created at the end of the term and then we wait for the customer to inform us if they want the maintenance again.  If the customer doesn't renew after a period of time, the subscription is cancelled.  If the customer wants maintenance later, a new termed subscription is set up with the only the recurring charges.  It seems that we'll just end up with a bunch of Cancelled subscription since the customer can "reup" at any time which results in a new subscription, at the moment.

 

Let me know if either of you have any feedback you can provide me.

Tags (1)
Guru

Re: Non Subscription Product Flow

@ehavens We are still handling this in the same manner as described previously.

 

Your use case sounds very similar to our perpetual product. A customer would buy perpetual-x-sku and also maintenance-x-sku on the same order for 12 months (perpetual + 12 months support/upgrades). At the end of that term if they wished not to renew then the subscription would be cancelled.

If 6 months later they wanted support back, they would place an order for a new subscription with only the 'maintenance-x-sku' on it.

 

The one nuance here was how we configured our provisioning systems to recognize if the customer had purchased a perpetual license. Since they are perpetual and not tied to the lifespan of the subscription object, a perpetual sku is considered valid even if it appears on a Cancelled subscreiption (since the cancellation only affects the maintenance).

 

This also means that if you wish to actually revoke a perpetual license (i.e. for a return or for incorrect provisioning) you cannot simply 'cancel' the subscription to remove it. You must first amend the subscription to remove the product then you can cancel the subscription.

 

With the new Orders framework we are looking forward to the ability to programatically split the order into multiple subscriptions. For our design, the maintenance would be placed on a termed subscription and the perpetual product would be placed on an evergreen one (indicating it 'lasts forever'). This can technically be done today but often requires two quotes to do it. With future changes to quotes supporting split subscription ordering this would be easier to do on a single quote. ( @nathanc has this on the roadmap i believe ).

Tags (1)
Guru

Re: Non Subscription Product Flow

Thank you @feisley for the feedback and I agree that our use cases are probably the same.  Sounds like we've implemented the same general solution.  We thought about maintaining the perpetual product on it's own evergreen subscription and managing a termed subscription(s) for their recurring maintenance product only, but since that can't be done on a single quote so that was kinda a no go.   Good to be reminded that Orders will allow the creation of 2 subscriptions on a single quote.

Tags (1)