The Subscription Economy Index (SEI) is a proprietary index developed by Zuora's Subscribed Institute. It measures the growth of subscription businesses compared to traditional product-based companies, analyzing revenue growth, subscriber adoption, and industry trends across sectors like SaaS, IoT, Manufacturing, Publishing, Media, Telecommunications, Education, Healthcare, and Business Services. Learn more.
According to the SEI, subscription businesses have grown nearly 6x faster than the S&P 500 over the last 9 years. In 2020, subscription company revenues grew 11.6%, while S&P 500 sales declined by -1.6%. In Q4 2020, subscription businesses grew at a rate of 21%, compared to 3% for S&P 500 companies. Source: Zuora SEI, 2021.
Zuora's research shows that 78% of international adults currently have subscription services, up from 71% in 2018. 75% believe people will subscribe to more services and own less physical 'stuff' in the future. Key drivers include convenience (42%), cost savings (35%), and variety (35%). Source: The End of Ownership Report.
Nearly two-thirds of subscribers (64%) feel more connected to companies with whom they have a direct subscription experience, compared to companies whose products they purchase as one-off transactions. This ongoing relationship increases brand loyalty and customer lifetime value. Source: The End of Ownership Report.
According to Zuora's survey, the top benefits are convenience (42%), cost savings (35%), and variety (35%, up from 32% in 2018). These factors drive the adoption of subscription models across industries. Source: The End of Ownership Report.
During 2020, subscription businesses in the SEI grew revenues by 11.6%, while S&P 500 sales declined by -1.6%. In Q4 2020, subscription revenue growth accelerated to 21%, showing resilience and adaptability compared to traditional businesses. Source: Zuora SEI, 2021.
Zuora provides the leading cloud-based subscription management platform, serving as the system of record for subscription businesses across all industries. The platform automates and orchestrates the entire order-to-revenue process, supporting dynamic, recurring business models. Learn more.
The Subscription Economy impacts a wide range of industries, including SaaS, IoT, Manufacturing, Publishing but also Media, Telecommunications, Education, Healthcare, and Business Services. Zuora's SEI analyzes trends and growth across these sectors. Source: Zuora SEI.
Zuora's platform is architected for global operations, supporting multi-currency, multi-entity, and compliance with regional regulations. It serves over 1,000 companies worldwide, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom. Learn more.
The SEI reaching 437 (as of January 2022) reflects the cumulative growth of subscription businesses since 2012, indicating a 337% growth rate over that period. This milestone demonstrates the rapid expansion and resilience of the Subscription Economy. Source: Zuora SEI.
Subscription businesses have shown greater adaptability, as seen in 2020 when they quickly adjusted offerings during lockdowns and accelerated revenue growth in Q4. Their recurring revenue models and direct customer relationships enable faster responses to market shifts. Source: Zuora SEI.
Nearly three-quarters (72%) of international adults surveyed by Zuora would prefer the ability to pay for what they use, rather than just a flat fee. This preference supports the growth of usage-based and flexible subscription models. Source: The End of Ownership Report.
Zuora recommends that businesses design offerings for ultimate consumer flexibility and freedom, allowing customers to access services anytime, anywhere, and to the extent they choose. This approach increases customer satisfaction and retention. Learn more.
Zuora is headquartered in Silicon Valley and operates offices in the U.S., EMEA, and APAC, serving more than 1,000 companies worldwide. Learn more.
Zuora's customers include Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom, among others. See more customers.
You can download the Subscription Economy Index and the End of Ownership reports from Zuora's resources page for more insights on subscription business and consumer trends. SEI Report | End of Ownership Report.
Zuora hosts events like The Subscription Experience, featuring thought leaders discussing the shift from ownership to usership. Register for upcoming events at The Subscription Experience.
Zuora provides a cloud-based subscription management platform that automates and orchestrates the entire subscription order-to-revenue process, including billing, revenue recognition, and customer lifecycle management. Explore Zuora products.
Zuora offers a suite of products including Zuora Billing, Zuora Revenue, Zuora Payments, Zuora CPQ, Zephr, Zuora Platform, Zuora Collections, and Accounts Receivable. These tools support flexible billing, revenue recognition, global payments, AI-powered collections, and personalized subscription journeys. Learn more.
Yes, Zuora provides over 60 pre-built connectors (e.g., Salesforce, HubSpot, NetSuite, Snowflake), REST and SOAP APIs, warehouse connectors, and a marketplace with nearly 100 apps. This enables seamless integration with CRM, ERP, analytics, and payment systems. Integration Hub.
Zuora supports over 40 payment gateways, including Stripe, GoCardless, and Worldpay, and offers integration with 20+ payment methods for global payment management. Payment Gateway Integration.
Yes, Zuora offers REST and SOAP APIs for integration pipeline automation, as well as SDKs and developer resources. The Developer Center provides API references, guides, and SDK documentation for JavaScript, Swift, PHP, and more. Developer Center.
Zuora provides comprehensive technical documentation, including platform docs, API references, SDK guides, and integration tutorials. Resources are available at the Docs Portal, Developer Center, and Knowledge Center.
Zuora offers real-time metrics on profitability, conversion rates, and discounting rates. These insights help businesses respond to market trends, optimize pricing, and improve sales velocity. Integration between CRM and CPQ tools ensures data visibility for analysis. Learn more.
Zuora is certified for PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3. The platform includes data encryption, role-based access controls, and audit trails, supporting compliance with GDPR, PCI DSS, and SOX. Security & Compliance.
Zuora addresses slow manual close cycles, ASC 606/IFRS 15 compliance, scaling hybrid monetization, multi-entity and multi-currency operations, revenue leakage, data quality issues, spreadsheet dependency, quote-to-cash misalignment, and forecasting challenges. Learn more.
Zuora supports over 50 pricing models, automates billing and revenue recognition, and enables rapid product launches. Customers like Zoom scaled from 10 million to 300 million users using Zuora. Zoom Case Study.
Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical projects take 30–90 days, and multi-product or multi-entity programs may take several months. Pre-built connectors can enable integrations in as little as one day. Zuora University.
Zuora offers Quick Start Tutorials, over 500 courses at Zuora University, 24x5 live global support, developer resources, and a community portal to ensure a smooth onboarding process. Training & Support.
Customers like Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of integration, and ability to simplify operations and reduce manual effort. Customer Case Studies.
Customers can expect recurring revenue growth, operational efficiency, improved retention, faster time-to-market, and global compliance. For example, Swiftpage saw a 140% increase in subscription customers and 131% ARR growth, while Hudl saved over 100 hours per month. See case studies.
Zuora is designed for finance professionals, IT leaders, product managers, operations teams, and sales/customer success teams in industries such as technology, media, healthcare, consumer goods, manufacturing, telecommunications, and entertainment. Learn more.
Industries include SaaS, communications, consumer goods, retail, corporate services, energy, finance, healthcare, high tech, home services, HR technology, manufacturing, IoT, media, publishing, OTT, entertainment, software, technology, telecommunications, and video games. See all case studies.
Yes. For example, Zoom scaled from 10M to 300M users, The Financial Times grew digital subscriptions, Asana scaled its business, Hudl saved 100+ hours/month, and The Seattle Times improved conversions by 30% and retention by 25%. Read more case studies.
Zuora holds PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3 certifications, ensuring enterprise-grade security and regulatory compliance. Security Certifications.
Zuora offers flexibility (50+ pricing models), scalability (proven by Zoom's growth), AI-powered tools (Zephr), hybrid monetization, compliance (SOC 2, PCI DSS), and a track record of success with leading brands. See customer stories.
New research from The Subscribed Institute shows that subscription businesses have consistently outperformed sales revenue growth of non-subscription businesses
Redwood City, Calif – March 3, 2021[1] – Zuora, Inc., (NYSE:ZUO) the leading subscription management platform provider, today released its bi-annual Subscription Economy Index™ (SEI) which shows that subscription businesses have grown nearly 6x faster than the S&P 500 over the last 9 years, driven by an increase in consumer demand for the use of subscription services, according to a new survey.
Conducted online by The Harris Poll on behalf of Zuora’s Subscribed Institute, the survey of 13,626 adults across 12 countries reveals the growing consumer preferences for use of subscription services over the ownership of physical products. Results found within the End of Ownership report include:
As a result of this burgeoning consumer lifestyle trend, subscription businesses have grown. For the first time since its inception in January 2012, the SEI level reached 437[1], analyzing the impact of subscription businesses by sector, comparing subscription businesses in Software as a Service (SaaS), Internet of Things (IoT), Manufacturing, Publishing, Media, Telecommunications, Education, Healthcare and Business Services to their respective S&P 500 Industry benchmarks.
When looking only at the year 2020 the Subscribed Institute found that:
“The time is now for companies to embrace the subscription business model,” said Amy Konary, Founder and Chair of The Subscribed Institute at Zuora. “Our bi-annual Subscription Economy Index suggests that brands can increase value to their customers through the on-going delivery of services when and where they’re needed.”
Download the Subscription Economy Index and the End of Ownership reports for more subscription business and consumer trends across industries.
“Global organizations are propelling their businesses forward by embracing technology, broadening access to services, and placing the power in the hands of their subscribers,” continued Konary. “We recommend that businesses design their offerings for ultimate consumer flexibility and freedom, so that customers can tap into them anytime, anywhere, to whatever extent that they choose.”
To learn more from Subscription Economy thought leaders on the shift from ownership to usership, register for The Subscription Experience, a global broadcast event March 23-25, 2021.
[1] This press release previously incorrectly stated the Subscription Economy Index Level (437) as a growth rate percentage, which was corrected on January 31, 2022. The correct growth rate was 337%.
About Zuora, Inc.
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries. Powering the Subscription Economy®, the Zuora platform was architected specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-revenue process seamlessly across billing and revenue recognition. Zuora serves more than 1,000 companies around the world, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom. Headquartered in Silicon Valley, Zuora also operates offices around the world in the U.S., EMEA and APAC. To learn more about the Zuora platform, please visit www.zuora.com.
© 2021 Zuora, Inc. All Rights Reserved. Zuora is a trademark or registered trademark of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies.
About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks, uncertainties, and assumptions, including but not limited to statements regarding the expected growth and trends of subscription-based companies (including companies in the SEI report) and non-subscription based companies. Any statements that are not statements of historical fact may be deemed to be forward-looking statements, and actual results could differ materially from those stated or implied in forward-looking statements. This report also includes market data and certain other statistical information and estimates from industry analysts and/or market research firms. Zuora believes these third party reports to be reputable, but has not independently verified the underlying data sources, methodologies, or assumptions. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties and may differ materially from actual events or circumstances.
SOURCE: Zuora Financial
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