How have companies like Adobe successfully transitioned into subscription-first businesses? Tien Tzuo, CEO and Founder of Zuora, talks about shifting from product-centric sales to customer-centric subscriptions and why subscriptions are the future.
In Today’s Episode, We’ll Dive Into:
How did Tien build such a successful customer-centric subscription business? A decade ago, Tien asked, “What’s the next thing in software?” He built Zuora on a bet that the way we consume would shift from a one-time purchase to a recurring subscription model.
What’s so special about subscription models? The previous one-time sale paradigm carried the mantra of ‘launch and sit back’. But with today’s consumer demands, that model is no longer feasible. Tien gives three patterns that thread across all successful subscription companies. He also talks about key mistakes that lead to failed subscription model transitions.
Why are relationships so important in the subscription model? How do you compete with a competitor that produces the same product or offers the same services? Relationships. Learn why your customer relationships are as important as the products or services you offer.
What are the challenges of moving from the old enterprise model to a subscription model? In the past, software teams planned one to two big annual launches. And the rest of the company followed this schedule. In a subscription model, everyone’s mindset, roles, and tasks have to adapt. Learn about the challenges everyone faces (from executive leadership to the sales team to the finance department) when embracing the subscription model.
Why do subscription models represent the future of business? Subscription services like Netflix and Amazon Prime have already changed the face of business. Now, customers are demanding annual models and don’t want to pay a one-time fee. Tien talks about some of his favorite subscription-based businesses and how these and other companies will change the world over the next 5 years.