zuora subscribed london

Zuora Subscribed London 2019 – LIVE

It’s Thursday October the 3rd and the Ebsta team have descended onto the Zuora Subscribed London event for the day…

Follow along for LIVE updates on this page as we learn about ownership coming to an end and the generational, business model shift towards subscription.

14:45

Implementing a Consumption Based Pricing Strategy…

Examples:

  • Zipcar – B2C Mobility
  • AWS – IaaS
  • HP – Consumable

Pricing should be simple… but effective.

  • Recurring – too simple?
  • Usage – too unpredictable?
  • Blended – just right?

History of consumption based business models…

First ever consumption based business model was found in 550BC in Persia – a postal network set up by the king that charged based on the distance the message had to travel.

2,000 years later, General Electric charged people in London for energy.

Why are more people and more businesses shifting to a consumption based model?

As we shift from ownership to “usership”… consumers want to only pay for what they use (micro scooters only charge per distance unit).

A blended subscription and consumption based model enables you to scale business by attracting new lower end customers by reducing friction and also reduce risk of unprofitable “over-consuming” customers.

14:30

Afternoon break…

13:30

Growth In A Modern Digital Economy…

Biggest challenge shifting from physical from digital?

Stefan Furnsinn answers:

“We are a $25m company… which has it’s pro’s and con’s”

  • Pro: “When we launch, we get attention straight away, as people think: “Yara are launching something””
  • Con’s: “Setting goals that stretch the mind but still are achievable”

How do you as a business manage pricing strategy?

Zen Jelenje answers:

“We try to be consistent as much as possible, but we understand that a product may take time to increase in value. Therefore, with renewals we focus on selling what has changed not what was there when they bought.”

Stefan Furnsinn answers:

“First question you ask, is… do you charge?”

“Second question… do you go with value based or penetration based pricing? What we have seen is that pricing agility is incredibly important.”

“You probably won’t get it right the first time, so your ability to evolve is more important than where you start”.

Final words…

Zen Jelenje answers:

“To achieve significant goals, the strategy must be continually repeated throughout the organization time and time again.”

Stefan Furnsinn answers:

“Be bold and just do it”

13:00

It’s lunchtime here, back with this talk in 30 minutes:

11:30

Breakout Session: Making Customers Choose Over And Over Again: The Wix.com Story

We welcome Elad Eran, General Manager of Wix to the stage:

Not sure how to incorporate a subscription model into your business?

Wix switched the goals of their customer service function from support to retention:

During this process, Wix built WixAnswers to serve their millions of users in house… 3 years later they released the product in the market. They were moving from B2C into B2B world.

Here are the key takeaways from that journey:

11:02

Did someone say cupcakes?

10:52

We’re getting a demo of Zuora’s subscription software over here in the Keynote, you’re not missing much… head here if you want to learn more.

10:16

Meanwhile at the Ebsta stand…

9:30

Keynote is about to kick off…

Tien Tzuo takes the stage to share his vision of the subscription economy. Recently, Under Armour sent him some running shoes that were connected to the cloud and are uploading data continuously.

But what will he now do with his old un-connected shoes?

Marie Kondo says he should through them out…

6 out of 10 people in the world are saying they don’t want to own things anymore whilst 74% of people say they will subscribe more.

  • 70% of UK adults have subscriptions today
  • 72% of UK adults agree that subscriptions free people for the burden of ownership
  • 74% of UK adults agree that in the future more people will subscribe

Forget ownership… think usership.

Physical sales for newspapers is down to levels not seen since the 1940’s whilst are consuming more news than ever before.

Games console sales are going down, whilst hours spent playing games are up.

If a car company’s revenue model is connected to cars sold they are in trouble… but if they can monetize miles driven… this could be lucrative in the subscription economy.

Even garage door businesses are embracing the subscription economy… enabling customers to open, track and monitor their garage door.

8:42

Things are warming up…