Report - Zuora

Subscription Economy Index™

The latest edition of the Subscription Economy Index™

The impact of today’s global pandemic has impacted the world’s citizens and economies, forcing businesses to quickly adapt.

The latest edition of the annual Subscription Economy Index™ (SEI), Zuora’s landmark index tracking the rapid ascent of the Subscription Economy, will reflect the growth metrics of hundreds of companies around the world amid today’s uncertain climate in industries including SaaS, IoT, Manufacturing, Publishing, Media, Telecommunications, Healthcare, and Corporate Services.

This edition of the SEI (as of September 2020) features new data for the last 6 months ending June 30, 2020.

Highlights include:

  • Up-to-date subscription company growth vs S&P 500 and other world indices
  • Industry and region-specific Subscription Economy growth trends around customers, Average Revenue Per Account (ARPA), churn and more
  • And the fastest growing region and vertical of the SEI in the world

The Subscription Economy Index™ vs S&P 500 & U.S. Retail Sales

The 2020 edition of the Subscription Economy Index™ (SEI) finds that subscription companies continue to outperform their product-based peers by wide margins.

Overall, subscription sign-ups are on the rise, and while the S&P 500 companies saw sales contract at an annualized rate of -10% in Q2, the Subscription Economy Index reveals that subscription businesses actually expanded at a rate of 12%.

The Subscription Economy Index™ vs S&P 500 & U.S. Retail Sales

What the Report Uncovers

  • The Subscription Economy Index™ vs S&P 500 sales growth
  • Subscription Growth Rates by industry and region
  • Industry- and region-specific Subscription Economy metrics including Churn Rate, Average Revenue Per Account (ARPA) Growth Rate, Net Account Growth Rate and Usage-Based Billing
  • New data added to the SEI, including growth of Free Trials, Discounts and Renewals
What the Report Uncovers

“Over the past few years, there’s been a lot of talk about subscription companies. Today, Zuora, a company that powers subscription-based businesses, which we wrote about in the magazine last year, launched an index to track what its CEO Tien Tzuo calls ‘the Subscription Economy.’”

- Forbes

“Because Zuora is a company that collects a great deal of data, Tzuo is able to say with confidence that 70 percent of customer growth was attributable to expanding footprints (upsells, cross-sells, renewals) rather than to the addition of net new customers. Zuora anonymizes customer data to derive such insights, which it publishes as the Subscription Economy Index, or SEI.”

- CRMBuyer

“The breadth and depth of the data analyzed in this study speak to the rapid ascent of the Subscription Economy.”

- eWeek