16
#Subscribed14 Quote-To-Subscription: Evolving Beyond Traditional CPQ André Pimentel Christian Jennings Business Applications

Quote-to-Subscription: Evolving Beyond Traditional CPQ

Embed Size (px)

Citation preview

#Subscribed14

Quote-To-Subscription:

Evolving BeyondTraditional CPQ

André PimentelChristian Jennings

Business Applications

CONFIDENTIAL 2

CPQ has transformed from a linear process to a multi-touch, multi-threaded customer engagement lifecycle…

Success

Renewal

Cancel Request

Upgrade/ Downgrade

Initial Sale

IPD

Engagement w/ Customers is a

series of Touchpoints &

Lifecycle events

CPQ CONUNDRUM

CONFIDENTIAL 3

STORY TIME!

CONFIDENTIAL 4

Company A: Widget Corp

TRADITIONAL CPQ

“Buy all of the widgets!!!!”

• Sell the customer as much as possible in any single transaction.

• Offer discounts on add-ons if purchased at the same time.

• Greater flexibility for the customer but may result in customer feeling confused and as if there are many hidden costs.

COMPANY GOALS:

CONFIDENTIAL 5

Traditional Business Model

• Product/Revenue mix: Hardware & Networking Equipment (60%), Software (15%), Premium Services & Support (25%)

WIDGET CORP

TRADITIONAL CPQ

Customer-facing CPQ Workflow

Product Line

Core Product

Required Add-ons/ Features

Optional Add-ons

Service & Support Options

• Works well for one-time transaction but not for relationship-based selling

TRADITIONAL CPQ

CONFIDENTIAL 6

WIDGET CORP

One-time Interaction We are selling you these things and we want to maximize

that sale now

Configure the widget Add options

CONFIDENTIAL 7

Company B: Cloud Inc.

“Come check us out so we can start forming a relationship and offering value add services & products.”

CLOUD CPQ

COMPANY GOALS: • Customer acquisition: GET YOU IN THE DOOR• Form a relationship, upgrade, and retain• Want you to feel like you’re getting all these features for

only $X!

CONFIDENTIAL 8

Cloud subscription business model

• Product/Revenue mix: 90% recurring subscription business, 10% add on and usage based products

CLOUD CPQ

CLOUD INC

Cloud Inc Imperatives• Rely on recurring revenue (generally only break even in year 1

for paying customer)- Have 100+ features and products inside core platform

• Cloud Inc initially tried CPQ: let the user pick their features

• Customers tended to choose fewer features to reduce price• Cloud Inc has several core product features directly tied to retention: they need customers to use these features to see great value out of their product

CONFIDENTIAL 9

Success

Renewal

Cancel Request

Upgrade/ Downgrade

Initial Sale

IPD

Align CPQ to subscription

lifecycle management

CLOUD CPQ

Feature & Pricing Bundling with Zuora = Cloud CPQ

CLOUD INC’S CPQ SOLUTION

• Bundling with advanced discounting configuration• Optional add-ons• Upgrades and downgrades• Lifecycle

management

CONFIDENTIAL 10

PROS

CLOUD CPQ PROS AND CONS

Cloud Inc must fight to keep customers engaged so that they continue paying for the service

Cloud Inc offerings are transparent Clear difference in packages offered

Cloud Inc has a recurring revenue stream

Cloud Inc has vast upsell opportunity to their install base

Focus on ease of sign up and the transparency of the monetization strategy

CONS

Cloud Inc must sell you the value proposition of add on services and upgrades Cloud Inc needs a CPQ system/method that provides the flexibility necessary to manage the entire customer lifecycle

DRUMROLL PLEASE

Cloud Inc = Demandforce!

• Cloud based marketing and communications platform

• Many features and value add services that drive customer growth and retention

CONFIDENTIAL 11

WE HAVE A SECRET TO SHARE

Attach

Renewal

Save/Retain

Sale

Our Lifecycl

e

VIDEO!

CONFIDENTIAL 12

Demandforce’s Lifecycle Management Roadmap:

• Un-package and re-bundle charges & discounts• Allow for greater pricing model flexibility• Enable any-time upgrades and downgrades• Restrict (AE) choice with configurable

logic

GOAL: ALIGN QUOTING AND PRICING CAPABILITIES TO DF CUSTOMER LIFECYCLE

QUOTING & PRICING ROADMAP

CONFIDENTIAL 13

CURRENT QUOTING SYSTEM (NEW SIGNUP)

CONFIDENTIAL 14

CURRENT QUOTING SYSTEM (ADD ONS)

CONFIDENTIAL 15

Current Quoting & Pricing Inputs:

Industry

Approval Level

x SFDC Profile

x Customer Size

x Customer Lifecycle Stage

x Primary Partner or Campaign Source

Future Quoting & Pricing Inputs:

Industry

Approval Level

SFDC Profile

Customer Size

Customer Lifecycle Stage

Primary Partner or Campaign Source

QUOTING & PRICING ROADMAP

CONFIDENTIAL 16

Q&A

QUOTING & PRICING ROADMAP