Oracle Subscription Billing - All your Billing Needs on a Single Platform

Editor's Notes

• #6: In an article published by the Economist in 2013, the Intelligence Unit after having surveyed multiple business leaders in consumer media and advisory services to this segment have highlighted a couple of survey findings that are interesting More than 50% of companies are changing or are in the process of changing the way they price and deliver their goods and services. (example above) The revenue impact from this evolving method of consumption is relatively low but is growing and Gartner has predicted that a portion of revenues for more than a third of the companies surveyed will be coming from this segment by 2015 Technology has changed the way we consume goods and services tremendously over the past decade and is changing constantly. The term – change is the new constant is truer here and now
• #7: Customers are looking for new ways to save spending on aspects of their consumption that was not possible before. In this scenario that customer satisfaction an retention becomes paramount. The consumption methods have changed drastically from before and now you do not necessarily have to own something outright to use it. You can opt for other capabilities to use a service or product – rent, share, subscribe…
• #8: Transactional economy (single sell) is different from subscription economy In a transactional world, you get an order and ship the product. Typically there is not much conversation with customer after initial sell. – unless there is a problem! In subscription world, everything happens over a period of time with different levels of complexity and the options to change things. Since subscription is over a period of time, customer gets lot of flexibility in purchasing a product or service, flexibility in pricing, payments, billing and usage , renewal, cancellation…
• #9: Subscriptions is not a different way of selling the product, it is a different way of looking at how the products that you provide are being consumed and how they are billed and paid for. There are also multiple elements that can change as the consumer continues to use and consume your product, with cancellations and additional extensions being made to elevate the satisfaction of the consume. It also has brought a new method of reviewing revenue to the provider of “Annual Recurring Revenue” (ARR)
• #10: The traditional model of sell once and forget has evolved into a continuous interaction with the customer to upsell and enable the commodity for ongoing satisfaction from continuous usage. It also means that there is a need for the provider and consumer to be interacting regularly on usage enablement, additions to the product/service, and changes to how it is consumed and even cancellations. There is also a focus now on renewals and a continuous stream of revenue.
• #11: What is the business case for this new economy. There are multiple companies that all of as are familiar with that provide this type of consumption model and are happy using this new method of product/usage. As we saw earlier on there is an ongoing regular stream of revenue that disrupts the way we have sold in the past This is largely due to the vast digital economy that has pervaded most of our usage dynamics
• #13: Companies that provide subscription based products are becoming a part of your life Shared bike, zipcar for daily commute Streaming services like Netflix, Pandora, Hulu and Spotify Vacation rentals through Air BnB Software as subscription – Salesforce, Workday, and Oracle The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites. Unlike traditional revenue generation model, which typically generates one time revenue through product sell, subscription based model generates recurring revenue. Consumers benefit from cheaper and convenient choices, and businesses have a continuous revenue stream.
• #14: Here is a survey conducted in the European B2B market to identify the segments of provisioning industries that shows the change in the economy to this new model.
• #17: Subscription solutions mimic the capability of a recurring billing solution and allow the provider to use the solution to manage a couple of things that facilitates the managing and tracking of subscription usage. It also allows for the use of promotions, discounts deals and other related activity that will help draw the consumer into more and more usage of the service/product to enable a recurring revenue source. As you would have seen in the previous screen in the pictorial there are trials, that lead to a subscription and continuous usage, hopefully to generate a regular stream of revenue.
• #18: Subscription and recurring billing software is used by businesses to facilitate the online payment process based on a subscription or recurring payment model. These solutions are used to store important client information such as credit card details and shipping addresses to automate repeated payments. They also allow for secure online payment by clients, as well as to help define pricing structures and models for subscription-based service providers. Establish pricing plans and payment models Bill customers on a recurring basis Online payment gateway integrations Create invoices and calculate taxes Generate reports on recurring revenue and customer value Protect and store customer data, and set access rights Manage deals, promotions and special offers
• #19: PCI compliance - allow for secure online payment by clients, as well as to help define pricing structures Recurring billing software can help you to implement payment models to respond to customer needs. You can choose to take payments up-front or in stages, such as on a monthly, quarterly or annual basis You can also combine pricing models such as one-time, recurring and usage-based billing All of the SaaS providers have capacity to conduct and manage subscriptions models in multiple countries with support for local and multi-currency models