Today, Zuora announced the general availability of its Zuora Insights solution at Subscribed London 2016. The Zuora Insights solution helps companies move into the next phase of maturity in the Subscription Economy where they can apply data and analytics to maximize growth and reduce churn.
A game-changer for subscription businesses, Insights unifies financial, behavioral and demographic data sources and helps companies analyze usage patterns, subscriber preferences and financial metrics to uncover opportunities to proactively engage, upsell, cross-sell and retain customers.
“Before Zuora, we never had a single source of truth for our subscribers, said Amy Andriano, Product Experience Manager at Invoca. “It used to take us more than 20 business intelligence reports, help from analytics experts, and weeks of work to get a single data point. With Insights, we now have a single platform to measure the health of our subscribers and identify new upsell and cross-sell opportunities we never knew existed.”
Subscription businesses generate about 23% percent of revenue through upsells and expansions to existing customers, so success depends on reducing attrition and maximizing the revenue opportunity from existing subscribers. To do this, the most successful businesses in the Subscription Economy simultaneously develop a deep data-driven understanding of customer demographics and behavior, including usage intensity trends, user similarities, engagement level, churn probability, user personas, and more, while applying this information to understand the drivers of their growth metrics – such as monthly recurring revenue, net dollar retention, lifetime value, and contracted utilization.
“Subscription Economy business models are maturing and becoming more sophisticated. Today customers are asking how they can continue to improve relationships with their subscribers to grow even faster,” said Tien Tzuo, CEO of Zuora. “Businesses must evolve their thinking from just knowing the financial metrics they run their businesses on, to understanding the drivers of growth and churn, then proactively acting on them to outperform the competition.”
Key Capabilities of the Zuora Insights Solution
As part of Zuora’s core subscription management software, the Zuora Insights solution enables subscription businesses to accurately predict renewals and churn, access real-time monitoring of opportunities and risks, and take concrete steps to lead to better business outcomes.
● Subscriber identity – A unified view of a subscriber’s financial, demographic and behavioral data from the Zuora subscription management solution and other analytics and customer relationship management databases.
● Subscriber segments – Functionality to group subscribers by common traits and behaviors to uncover patterns that lead to adoption, upsell and cross-sell opportunities or signs of churn.
● Calculated metrics – Turn any subscriber behavior into a metric by calculating its frequency (daily, weekly or monthly) in counts, averages, percentiles, ratios and more. Compare these trends with vital subscription billing metrics like MRR, subscription length and total spend over time.
● Predictive scoring – Developed by Zuora’s chief data scientist, machine learning algorithms predict customer churn and propensity to renew based on the subscriber metrics tailored to every business.
● Salesforce sync – Integration with Salesforce to sync subscriber segments with CRM data to automatically create upsell or cross-sell opportunities by looking at customer behaviors in segments for outbound marketing.