PeakCommerce is a cloud-based software ecommerce platform that helps simplify customer self-service and manage subscription business complexity.
Shifting to a consumption-based model required a flexible platform that could manage pricing complexity and heavy usage.
Zuora Central anchors their order-to-cash process with a scalable platform to help them become operationally and systematically aligned.
With Zuora Central, PeakCommerce can launch their new offering more easily, track heavy usage, and experiment with pricing and packaging to achieve economies of scale.
As a native SaaS business and leading subscription ecommerce platform, PeakCommerce operated under a subscription model from the outset, with subscriptions based solely on platform fees. But they knew that to stay competitive, they — like all businesses — needed to evolve to meet shifting customer demand.
In their case, this meant shifting to a consumption-based model, with multiple editions and tiers based on the number of monthly active users.
The shift to a usage model is a great business move for PeakCommerce: according to a recent Subscription Economy Benchmark, companies with usage-based pricing comprising between 1-50% of their overall revenue grow 1.5x higher than companies with no usage-based pricing.
But this new model (along with their hunt for a new funding round and a recent acquisition that needed to be integrated) made them realize that it was time to refresh their technology. They needed a platform to help them launch their new consumption model, support growing order-to-cash complexity, and enable future growth.
As PeakCommerce Co-Founder and CEO, Gerald Soto notes, “Businesses can’t orchestrate all the complexity of a consumption-based model on their own. A lot of subscription businesses may try to manage subscriptions themselves, but they’ll quickly discover that they need to leverage a purpose-built subscription platform.”
To manage the increased volume and complexity of their usage-based pricing model, PeakCommerce turned to Zuora. The Zuora Central Platform can support the heavy usage that’s predicted from their new usage-based model and give PeakCommerce the ability to price, package, and iterate on their offerings more easily to quickly achieve economies of scale.
After implementing Zuora in just 30 days, PeakCommerce found themselves set up for success with a solid anchor to their enterprise order-to-cash system.
Zuora enables PeakCommerce to handle increased complexity and provides the company with the necessary infrastructure to onboard and support new revenue streams while driving operational efficiencies.
As Soto notes, “One of the challenges every SaaS business faces is evolving from an emerging business with lightweight business systems to an enterprise organization with top-tier business systems.The real value-add with Zuora is that it’s allowing us to set up the framework to grow and scale.”
“Every SaaS business faces the challenge of evolving from a business with lightweight systems to an enterprise organization with top-tier business systems. Zuora is the framework we need to grow and scale.” – Gerald Soto, PeakCommerce Co-Founder and CEO
“As we seek additional funding, we wanted an overall ecosystem that was scalable. That was Zuora.” – Gerald Soto, PeakCommerce Co-Founder and CEO