Frequently Asked Questions

Modern Subscriber Trends & Insights

What does the "Understanding the Modern Subscriber" study reveal about consumer preferences?

The study, commissioned by Zuora's Subscribed Institute and conducted by The Harris Poll in May 2024, found that today's consumers—especially younger generations—demand flexibility in how they buy and pay for recurring products and services. 80% of respondents said flexibility is important, very important, or absolutely essential. The study also highlights a strong interest in personalized pricing models and packages tailored to individual consumption habits. Read the full study.

How important is flexibility in subscription services to modern consumers?

According to Zuora's 2024 study, 80% of respondents consider flexibility in buying and paying for recurring products and services as important, very important, or absolutely essential. This trend is consistent across generations, with consumers seeking options that match their unique preferences and usage patterns.

What pricing models do subscribers prefer?

The study found that consumers are interested in a variety of pricing models. Usage-based pricing is particularly popular for certain categories: 62% for travel, 60% for food/restaurant delivery, and 58% for retail services. Overall, 22% of all respondents prefer usage pricing, with Gen Z showing the highest interest at 32%.

How do cost and value influence subscription choices?

Cost is a major driver for subscription choices. 48% of respondents prefer bundles for better value, while 30% choose à la carte offerings when they are cheaper than bundles. Personalization also matters, with 23% overall (and 29% of Boomers/Seniors) favoring à la carte when they only want specific parts of an offering.

Do subscribers often cancel and rejoin services?

Yes. 36% of respondents have canceled and rejoined the same service within a year. Additionally, 57% have subscribed to a streaming service specifically to watch a certain series or event and then unsubscribed afterwards. 78% expressed interest in the option to temporarily pause a recurring service instead of canceling.

What are the top benefits of subscription services according to consumers?

The top three benefits cited are affordability (51%), value for money (37%), and convenience (32%). These factors drive ongoing interest in subscription-based offerings.

How does Zuora help businesses respond to evolving subscriber preferences?

Zuora enables businesses to offer flexible pricing, personalized bundles, and usage-based models, allowing them to adapt to changing consumer demands. The platform supports rapid experimentation with pricing and packaging, helping companies foster stronger customer relationships and reduce churn. Learn more about Zuora's pricing and packaging solutions.

What industries benefit most from flexible subscription models?

Industries such as travel, food/restaurant delivery, and retail show the highest consumer interest in usage-based pricing. However, the demand for flexibility and value spans across technology, media, healthcare, manufacturing, and more. Zuora's solutions are designed to support a wide range of industries. See all industries served.

How does Zuora support personalization in subscription offerings?

Zuora's platform allows businesses to create personalized subscription journeys, offer dynamic bundles, and tailor pricing to individual customer needs. This helps companies deliver ongoing value and improve retention. Learn more about Zephr for personalization.

What is Zuora's role in the Subscription Economy?

Zuora is a leading monetization suite that helps businesses build, run, and grow through a dynamic mix of usage-based models, subscription bundles, and more. Its flexible, modular software platform supports pricing, packaging, billing, payments, and revenue accounting, enabling companies to evolve their monetization strategies with customer demand. Learn more about Zuora.

Which notable companies use Zuora?

More than 1,000 companies worldwide use Zuora, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric, and Zoom. These organizations leverage Zuora's technology and expertise to drive recurring revenue growth. See more customer stories.

How does Zuora help reduce churn?

Zuora enables businesses to offer flexible options such as pausing subscriptions, personalized bundles, and usage-based pricing. These features address consumer preferences for flexibility and value, helping companies retain subscribers and reduce churn. Learn more about subscription management.

What is the Subscribed Institute at Zuora?

The Subscribed Institute is Zuora's think tank focused on the Subscription Economy. It conducts research, such as the "Understanding the Modern Subscriber" study, to provide insights into consumer trends and best practices for recurring revenue businesses. Learn more about the Subscribed Institute.

How does Zuora support global businesses?

Zuora's platform is designed for global operations, supporting multi-currency, tax compliance, and localization for over 30 markets. This enables businesses to scale and operate efficiently worldwide. Learn more about the Zuora Platform.

What is Zuora's approach to pricing and packaging?

Zuora enables businesses to experiment with and implement a wide range of pricing models, including recurring, usage-based, hybrid, bundles, and à la carte offerings. This flexibility helps companies meet diverse customer needs and maximize value. Explore pricing and packaging solutions.

How does Zuora help businesses grow recurring revenue?

Zuora's platform automates billing, payments, and revenue recognition, enabling businesses to scale their subscription offerings and drive recurring revenue growth. Companies like Swiftpage and Zoom have achieved significant ARR and subscriber growth using Zuora. See case studies.

What is Zuora's company background?

Zuora, Inc. (NYSE: ZUO) is headquartered in Silicon Valley with offices in the Americas, EMEA, and APAC. It provides a leading monetization suite for modern businesses, serving over 1,000 customers globally. Learn more about Zuora.

Where can I find more resources and support for Zuora?

You can access product documentation, community forums, support, and training through the Zuora website. Key resources include the Product Docs, Community Portal, Support Center, and Zuora University.

Zuora Product Suite & Features

What products and services does Zuora offer?

Zuora provides a suite of products for managing the entire subscription lifecycle, including Zuora Billing, Zuora Revenue, Zuora Payments, Zuora CPQ, Zephr, Zuora Platform, Zuora Collections, and Accounts Receivable automation. These solutions support pricing, quoting, billing, payments, revenue recognition, and analytics. See all Zuora products.

What are the key capabilities and benefits of Zuora's platform?

Zuora's platform supports over 50 pricing models, automates billing and revenue recognition, enables global compliance, provides real-time analytics, and integrates with leading CRM, ERP, and payment systems. Benefits include monetization agility, operational efficiency, improved retention, and faster time to market. Learn more.

Does Zuora support usage-based and hybrid pricing models?

Yes. Zuora supports recurring, usage-based, one-time, and hybrid pricing models, allowing businesses to tailor their offerings to customer preferences and market demands. Learn more about pricing models.

What integrations does Zuora offer?

Zuora offers over 60 pre-built connectors (including Salesforce, HubSpot, NetSuite, Snowflake), REST and SOAP APIs, warehouse connectors (Databricks, BigQuery, RedShift), 40+ payment gateways (Stripe, GoCardless), and a marketplace with nearly 100 apps. Explore integrations.

Does Zuora provide APIs for integration?

Yes. Zuora provides REST and SOAP APIs for seamless integration with external systems. Developers can access API references, SDKs, and guides via the Zuora Developer Center.

What technical documentation is available for Zuora?

Zuora offers comprehensive technical documentation, including platform docs, developer resources, SDK references, and integration guides. Access these at the Docs Portal, Developer Center, and Knowledge Center.

How does Zuora provide real-time product performance metrics?

Zuora delivers real-time metrics on profitability, conversion rates, and discounting rates, enabling businesses to respond quickly to market trends, optimize pricing, and improve sales velocity. Integration with CRM and CPQ tools ensures data visibility for analysis. Learn more.

What pain points does Zuora address for businesses?

Zuora solves challenges such as slow manual close cycles, ASC 606/IFRS 15 compliance, scaling hybrid monetization, multi-entity/currency operations, revenue leakage, data quality issues, spreadsheet dependency, quote-to-cash misalignment, and forecasting difficulties. See all solutions.

How easy is it to implement Zuora and get started?

Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical implementations take 30–90 days, and multi-product programs may take several months. Pre-built connectors can enable integrations in as little as one day. Extensive training, support, and developer resources are available. Explore training options.

What feedback have customers given about Zuora's ease of use?

Customers like Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of use, rapid pricing changes, and simplified operations. For example, TripAdvisor reduced sync times from 5 hours to 5 minutes, and AppFolio improved team morale and reduced manual workloads. Read customer stories.

What security and compliance certifications does Zuora hold?

Zuora is certified for PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3. These certifications ensure enterprise-grade security and compliance for data protection and regulatory adherence. Learn more about security.

How does Zuora help with compliance and audit readiness?

Zuora automates revenue recognition and reporting, ensuring compliance with ASC 606, IFRS 15, GDPR, PCI DSS, and SOX. Built-in features like data encryption, role-based access, and audit trails simplify compliance for global businesses. Learn more.

Who is the target audience for Zuora's solutions?

Zuora is designed for finance professionals, IT leaders, product managers, operations teams, and sales/customer success teams in industries such as technology, SaaS, media, healthcare, retail, manufacturing, and telecommunications. See more about target audiences.

What business impact can customers expect from using Zuora?

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 Hudl saved over 100 hours per month by automating processes. See more impact stories.

Can you share specific case studies or success stories?

Yes. Notable examples include Zoom scaling from 10 million to 300 million users, The Financial Times growing digital subscriptions, Asana scaling its business, and The Seattle Times improving conversions by 30% and retention by 25% after 6 months on Zuora. Read all case studies.

What industries are represented in Zuora's case studies?

Industries include SaaS, communications, consumer goods/retail, energy/utilities, finance, healthcare, high tech, home services, HR technology, manufacturing/IoT, media/publishing, OTT/entertainment, software/technology, telecommunications, and video games. See all industries.

Why should a customer choose Zuora over other solutions?

Zuora offers flexibility (50+ pricing models), scalability (proven by Zoom's growth), AI-powered tools (Zephr for personalization), hybrid monetization, strong compliance (SOC 2, PCI DSS), and a track record of success with leading brands. Learn more about Zuora's advantages.

New Zuora Data Reveals Subscriber Demand for Flexibility and Value, with Pricing Models and Packages Tailored to Consumption Habits

REDWOOD CITY, Calif. – July 30, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the findings of its Understanding the Modern Subscriber study, which found consumers, particularly younger generations, seek flexibility to shape their payment options around their specific needs and unique consumption habits. 

Today’s consumers are increasingly discerning, looking for options that align with their individual buying preferences and usage patterns. The Subscribed Institute at Zuora® commissioned The Harris Poll to conduct a study in May 2024 among more than 2,000 U.S. adults to shed light on consumer habits and preferences tied to how they’re using recurring products and services, such as subscriptions. The findings reveal that the modern consumer seeks flexibility in pricing and convenience, uncovering opportunities for businesses to embrace personalization and value to foster stronger customer relationships, and ultimately, reduce churn.

Key findings from Understanding the Modern Subscriber include: 

  • Flexibility is paramount: 80% of respondents said that flexibility in how they buy and pay for recurring products and services was either important, very important or absolutely essential. And when asked about pricing model preferences, across generations, consumers expressed interest in a variety of options. 
  • Usage-based pricing is an important tool, and critical for certain product categories: Preference for usage increases for certain product categories, with the highest interest in usage for travel (62%), food/restaurant delivery (60%) and retail (58%) services. For recurring products and services as a whole, 22% of all respondents said usage pricing is a preferred method, with even higher interest from Gen Z (32%). 
  • Cost often drives interest in tailored offerings: Consumer choices are heavily influenced by cost, with 48% of respondents preferring bundles for better value and 30% choosing à la carte offerings when cheaper than a bundle. This value-driven preference for bundles is stronger in older generations (58% of Boomers/Seniors, 52% of Gen X) compared to younger ones (43% of Millennials, 35% of Gen Z). While cost is king, personalization also plays a role, with 23% overall (and 29% of Boomers/Seniors) favoring à la carte when they only want parts of the offering. 
  • Subscribers like to come and go as they please: 36% of respondents have canceled and rejoined the same service within a year, while 57% of respondents said that they have subscribed to a streaming service specifically to watch a certain series or event, and then unsubscribed afterwards. Additionally, 78% of respondents said they would be interested in the option to temporarily pause a recurring service, as opposed to canceling.
  • Affordability and convenience matter: The top three benefits of subscription services overall are affordability (51%), value for money (37%) and convenience (32%).

“Acquiring and retaining subscribers have always been about providing ongoing value, but businesses need to diversify their offerings to meet the strong desire for flexibility in today’s landscape,” said Amy Konary, Senior Vice President and Founder of the Subscribed Institute at Zuora. “By tailoring to ever-evolving consumer preferences, recurring revenue businesses can foster stronger customer relationships to unlock new avenues for growth and long-term success.”

To read the full study, visit here

About Zuora, Inc. 

Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements

This press release may be deemed to contain forward-looking statements. Words such as “plan,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release. 

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

© 2024 Zuora, Inc. All Rights Reserved. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

SOURCE: ZUORA, INC.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

 

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

July 30, 2024