Subscribed World Tour Keynote: London, 2015

A luxury travel destination club. A pet insurance provider. A weight loss program. A farming equipment provider in New Zealand. A personal meditation app. A professional soccer scouting service. A school lunch program. A wedding publisher. A French home furnishings company. A restaurant reservation seating system. A streaming Japanese anime provider. A fashion industry marketing service. A plumbing & handyman service. A major American airline. A major American automobile manufacturer. A smart thermostat. A credit card company. A textbook publisher. A home rental service. A cable TV company. A foreign language learning program. A standardized test preparation service. A 131 year-old cash register manufacturer. A home improvement and interior design community. A salon & spa management platform. A radio network. A hospital news publisher. An Ivy League university. A national telecom. A legal contract resource. A lock manufacturer. A smart phone manufacturer. A private jet service. A toothbrush delivery service. A multinational OEM. An 83 year-old beauty supply company. A mobile gaming company. A food takeout delivery service. A real estate agent community. A Swiss travel agency. A streaming music service. A weather data service. A 160 year-old British financial newspaper. A recreational boat marketplace. A home security company. A French restaurant guide. A visual effects studio.

WELCOME TO SUBSCRIBED 2015

WE HAVE BEEN ON AN INCREDIBLE JOURNEY

Products 1970s

Product + Services 1990s

Customer Centric 2000s

Relationship Centric Today

WE ARE LIVING IN A DIFFERENT ERA

WE ARE HERE TO CELEBRATE YOU

THE DISRUPTORS

2011

THE MAVERICKS

2012

THE CHANGE-AGENTS

2013

THE REINVENTORS

2014

IN 5 SHORT YEARS YOU’VE TRANSFORMED THE MARKET

CUSTOMERS HAVE CHANGED

OUTCOMES Not Ownership

CUSTOMISATION Not Generalisation

CONSTANT IMPROVEMENT Not Planned Obsolescence

CUSTOMERS NOW EXPECT THE SUBSCRIPTION EXPERIENCE

EVERY INDUSTRY HAS SHIFTED

Auto Streaming Media Print Media

Tech Education Retail Music

2015: THE SUBSCRIPTION ECONOMY IS OFFICALLY

MAINSTREAM

YOU Are Changing The World

“We've moved from selling boxes, cloud, mobility, or any other solution to partner with customers on their outcomes.”

John Chambers, CEO, Cisco

May 2015

YOU CHANGED TECHNOLOGY

"There's a secular movement that's happening ... more to an annuity relationship as well as a subscription relationship. These are the long-term relationships we want to have with all customers. There will be an increasing emphasis on the lifetime value that we can deliver to customers.”

Satya Nadella, CEO, Microsoft May, 2015

YOU CHANGED TECHNOLOGY

YOU CHANGED RETAIL

YOU CHANGED THE MUSIC INDUSTRY

Beats Tidal iTunes Pandora

45B Likes

Spotify

60M Users $3B value Jay Z Down 20%

YOU CHANGED TRANSPORTATION General Motors is Live on Zuora

THE UK NEWSPAPER INDUSTRY IS NOW LIVE ON ZUORA

Times of London Time UK The Guardian The Sun

The Financial Times The Telegraph

Subscriptions Went IPO

Enterprises Embraced Subscriptions

50% Of people in France are moving away from ownership. Traditional consumption models don’t meet the demands of consumers who now favor flexibility and unlimited access. Market study: Institut Français D’opinion Publique (IFOP)

THE FRENCH HAVE GONE SUBSCRIPTION

THE GERMANS HAVE GONE SUBSCRIPTION

80% Of German companies have dealt with the issue of subscription business models. Subscription models have already arrived in the minds of board members. Market study: IDG Research Services

WE EXPANDED ACROSS THE GLOBE

Munich Gothenburg Tokyo Vienna Copenhagen

Berlin Boston Cologne Amsterdam Denver

We Will Continue To Invest In Product

95% Customer Satisfaction

For 15 Quarters

2 Stevie Tech

Support Awards

100% Growth In Our

CS Team

1B API Calls Per Month

25M Invoices Per Month

50M Subscription Amendments

2X Payments Processed

In The Academy

$50B Total Contracted Invoice Volume

OUR WORLD IS CHANGING… TWO STORIES.

MARK BEARD VP, Digital Media & Content Strategy

THE ECONOMIST IS CONSISTENTLY PROFITABLE AND CIRCULATION

HAS GROWN

THE ECONOMIST’S PROFIT IS DRIVEN THROUGH TWO SOURCES

Subscription revenue Advertising revenue

WE SPOTTED INDUSTRY ADVERTISING TURMOIL EARLY, AND REACTED QUICKLY

WE SAW HUGE POTENTIAL TO GROW OUR NUMBER OF SUBSCRIBERS BY CHALLENGING

PERCEPTIONS ABOUT THE BRAND

WE DECIDED TO INCREASE OUR INVESTMENT IN TOP-OF-THE-FUNNEL SUBSCRIPTION

MARKETING

Display

Mobile

Social

Email

Order page

Search

Brand

WE USED EXISTING CUSTOMER DATA TO HELP US BUILD A POOL OF PROSPECTS

WE LINKED THEM TO UNEXPECTED CONTENT…

…WITH PROVOCATIVE HEADLINES

WE PLACED OUR ADS, CONTEXTUALLY, WHERE WE KNEW OUR AUDIENCE WOULD BE

GRAZING

AND WE CREATED A SIMPLE AND FRICTIONLESS CUSTOMER JOURNEY

“A content marketing strategy that marries a cheekily inventive approach with state of the art dynamic units - all clicking through to a customised soft landing page where new readers can consume a piece of content and then go on to register or subscribe.“ The Drum

“Content led”

traffic generation

“Content Hub” to engage

with content

Subs

Re-target With more

content

WE SAW A POSITIVE SHIFT IN PERCEPTIONS OF THE ECONOMIST BRAND... NAMELY IN

RELEVANCE AND ADVOCACY

AND THE PRIZE FOR OUR EFFORTS…

Significant Growth in the Number of New Readers and Subscribers to The Economist

6M new visitors The beginning of many long-term relationships

£12M in lifetime recurring revenue

Thousands of new subscribers

THE WINNING FORMULA

+ Clever use of 1st party subscriber data + Seamless customer journeys + Provocative headlines + Inspired content = Subscription Success

LITERALLY, WINNING.

Cannes Lions Award: Best Use of Real-Time Data

ANTHONY FLETCHER CEO

Good just got interesting

Direct to consumer FMCG channels

Graze sells through two channels

A strong financial model has given revenue and profit growth

4 12

32

62

82

105

-‐2 -‐2 6

16 19 14

-10

10

30

50

70

90

110 Graze revenue and EBITDA

$, m

illions

FX: 1.55 $/£

•  Negative working capital

•  Double digital EBITDA margins •  Low capital expended on distribution

•  Control of pricing

•  Insulation from input prices

•  Economies of scale realised through automation and procurement scale

Strong financial model

It’s model has 5 advantages over pure FMCG brands

A proprietary and rapidly changing

product range

Ability to build brand Data to improve product and service

Create unique experiences

Multichannel advantages

Ability to build brand

Direct communication

0%

1%

2%

3%

4%

5%

6%

Q: Thinking about brands of products that make or sell healthy snacks, which BRANDS, if any, can you think of? N=2010

Heavyweight spend

Highly differentiated

Top 10 in snacks

Graze online data

3rd party loyalty schemes

EPOS sales

3rd party online data

Data to improve product and service

A proprietary and rapidly changing product range

Quickly reaches customers

Rapid data analytics

Product team create new product

Specially designed

processes bring products to

market rapidly

grazer rates

A unique experience

Conveniently delivered through na5onal post networks

A large, frequently changing range of products which cannot be purchased elsewhere

Personalised to customer taste and dietary preferences

With new benefits of discovery, explora5on and surprise

Online/Offline Customer journeys

Media

Gather online informa6on

Trial product in store

Try products online

Word of mouth

Regular store buyer

Regular online buyers

Rapid data analytics

Product team create new product

Specially designed processes bring products to market rapidly

Quickly reaches customers

grazer rates

Marketing spend Drives multiple

channels

Brand building

Trust

Familiarity

Excitement

Dis5nc5veness

Reach

New

Leverage data And innovation

advantages

Multichannel advantages

What’s next?

OUR WORLD IS CHANGING…

THE NEW IMPERATIVE: TURN CUSTOMERS INTO SUBSCRIBERS

THIS CHANGES EVERYTHING

DELIVER A SUBSCRIPTION EXPERIENCE A product is not enough

(VP of Innovation)

INNOVATE AND ITERATE ON BUSINESS MODELS

(CMO)

MODERNIZE FINANCE Now it’s about recurring revenue

(CFO)

SCALE EFFORTLESSLY New offerings. New geographies.

(CIO)

KNOW YOUR SUBSCRIBERS Be personal. Be valuable.

(VP Sales)

DELIVER A CONSISTENT EXPERIENCE Anytime, anywhere, any channel.

(COO)

BUILD A SUBSCRIPTION CULTURE Goodbye to one-hit products

(CEO)

Marketing Product Sales Finance IT Ops

A product

? ?

THIS IS HOW YOU OPERATE TODAY

PUT SUBSCRIBERS AT THE CENTER

Marketing

Finance Sales

IT

Product Ops

MANY OF YOU HAVE SILOED SYSTEMS

Pricing Quoting Billing Revenue

? ?

E-commerce

EVERY SYSTEM THAT TOUCHES THE SUBSCRIBER MUST

CHANGE

Pricing & packaging

Quoting

E-Commerce

Billing

Payments & collections

Revenue

Without the right systems, you can’t turn customers into subscribers

•  A subscription experience

•  Business model innovation

•  Modernize finance

•  Scale effortlessly

•  Know your subscribers

•  A subscription culture

A NEW PROSPECT-TO-CASH SYSTEM IS NEEDED

Pricing & packaging Quoting E-Commerce Billing Payments

& collections Revenue

Relationship Business Management

Use ERP? Build your own system? Stitch together niche solutions?

YOUR OPTIONS

Everything you need to power a subscription business, from z to a

81

GUILLAUME VIVES SVP, Product

Existing enterprise systems no longer work

product

distributed to customers via different channels customer

visits different channels to manage products

upgrade, downgrade, renew uses the product

Pricing & packaging

Quoting

E-Commerce

Billing


Revenue ERP CRM

CPQ

E-COMMERCE

BILLING

REVENUE

A SINGLE UNIFIED SOLUTION

INSIGHTS

PRICING & PACKAGING •  One time, recurring and

usage pricing

•  Mix and match charge models

•  Promotions and discounts

•  Packaging and entitlements

•  Multi-currency pricing

CPQ •  Guided selling

•  Branded quoting

•  Product bundling

•  Product and pricing rules

•  Lifecycle order management •  One click quote-to-invoice

E-COMMERCE •  PCI compliant payment

pages

•  Dynamic localization

•  Built-in credit card validation •  Account self-service

•  REST and SOAP APIs for multi-channel engagement

BILLING & PAYMENTS •  High volume billing

automation

•  200+ currencies, 21+ gateways, 8+ global payment methods

•  Invoice personalization + localization

•  Integrated tax •  Intelligent error handling

REVENUE •  Revenue rules engine

•  Revenue schedule automation

•  Revenue recognition reports

•  Revenue journal entries

•  Revenue allocation tracking and audit log

ANALYTICS •  Bookings, billing, cash,

revenue reports •  Subscriber usage and

behavioral analytics

•  Smart subscriber segmentation

•  Insights-driven engagement triggers

•  Intuitive, interactive report builder interface

(New!)

RBM Unifies Your Entire Business Around

Your Subscribers

Pricing & packaging

Quoting

E-Commerce

Billing


Revenue

TO HELP YOU TURN CUSTOMERS INTO SUBSCRIBERS

PETE TOMLINSON

Director, Sales & Marketing

KCOM

Q: Tell us a little bit about KCOM

Q: How did you come to join the Subscription Economy?

Q: How has KCOM changed to take advantage of this shift?

Q: What internal challenges have you had to overcome?

Q: What led you to partner with Zuora?

Q: Is Life Better With Zuora?

RBM Unifies Your Entire Business Around

Your Subscribers

Pricing & packaging

Quoting

E-Commerce

Billing


Revenue

LET’S TAKE A LOOK

CHRIS BRUNER Product Manager

+ JING JING XIA Product Marketing

Pricing & packaging

PRODUCT & MARKETING

Quoting

E-Commerce SALES & OPERATIONS

Billing


Revenue FINANCE

Pricing & packaging

Quoting

E-Commerce

Billing


Revenue A UNIFIED VIEW OF EVERY SUBSCRIBER

Turn by turn navigation

Roadside assistance

Sirius XM

Emergency connect

Traffic pulse

Wifi connectivity

CARSPOT

ü  Flexible pricing & packaging engine ü  Complete set of modules for the company

ü  Common view around the subscriber

OUR WORLD IS CHANGING

SUCCESS = DELIVERING THE SUBSCRIPTION EXPERIENCE

THE KEY IS RELATIONSHIP BUSINESS MANAGEMENT

Pricing & packaging Quoting E-Commerce Billing Payments

& collections Revenue

DOING THIS CHANGES EVERYTHING

Marketing Panel : The Subscription Marketing

Master plan

IOT Panel: IOT & the founding of digital

transformation Customer service in the Subscription Economy

Zuora product: Billing & Collections

Finance Panel: The Modern CFO, from geek

to guru

Media Panel: Think like a disruptor: Lessons

from media companies Navigating the subscription

billing market Zuora Product:

CPQ

CIO Panel: The New CIO

SaaS Panel: Lessons learnt from

subscription veterans What’s next for content

monetization Zuora Product:

Insights

Networking & Cocktails

ROLE BASED PANELS INDUSTRY PANELS EXPERT PRESENTATIONS PRODUCT PRESENTATIONS

STARTUP BATTLE

The Rest of Today

THE ACADEMY www.zuora.com/academy

CPQ FOR SUBSCRIPTION

BUSINESSES

INSIGHTS THAT INCREASE REVENUE &

REDUCE CHURN

MONETIZING THE INTERNET OF THINGS

GO OUT AND CONTINUE TO CHANGE OUR WORLD

THE WORLD. SUBSCRIBED.

THANK YOU.