Configure, Price and Quote with Zuora for Salesforce

Learn how to CPQ with Zuora for Salesforce’s Latest Release

Nathan CreswellProduct Director, ZuoraHarrison RileySenior Manager, Business Systems, Okta

Jake RandallVP Business Operations, Okta

Configure, Price and Quote with Zuora for Salesforce

Learn how to CPQ with Zuora for Salesforce’s Latest Release

Nathan CreswellProduct Director, Zuora

Harrison RileySenior Manager, Business Systems, Okta

Jake RandallVP Business Operations, Okta

askyourself

How many people here use Zuora for Salesforce ? ?

page03

Problems in the Front OfficeDoes this sound familiar?

page04

How do I handle billing and rev rec complexities from

Subscription Quoting?

How do I reduce Quote/Order errors?

How do I better capture

renewal and upsells

potential?

How do I deploy new packages and pricing quickly?

How do I prevent a single point of failure in my

Systems?

How do I scale my reps for growth?

How do I provide a consistent

customer experience across

channels?

How do I model complex discounts and approvals?

What does Quoting for Subscriptions mean?

page05

01 Fight for Customer EngagementSubscription companies have to constantly prove their value to the customer

03 Earn the Customer’s TrustOfferings give clear value from product to product and pricing and differences are obvious

02

Maximize Lifetime ValueProving value also includes leveraging ways to grow their usage of your product or service

04

FlexibilityNeed an end to end system that can be flexible

01

FIGHT FOR CUSTOMER ENGAGEMENT

All Subscription companies must prove their value because if a relationship is recurring, you need to prove every month why

you deserve their business

Prove ValueAt Every Stage

page07

Quote for your Assisted Sales Channel.

Be Guided to the right Products and Prices.

Give the right discounts and approvals.

Produce clear and transparent Quoting templates for your

customers. Show Features.

QuoteCreate a record of your

relationship with the customer.

Auto renew that relationship.

Accept subscriptions from different channels.

Let your front office know the services customers

are subscribed to.

SubscribeAccurate and automated

recurring billing.

Correctly formatted invoices.

Answer: what am I paying for again?

Reflect those Invoices to the front office.

Resolve Invoice disputes.

BillAccept any type of

payment anywhere.

Accept multi country and multi currency payments.

Provide Refunds from the front office easily when

necessary.

Pay

The Customer

02

MAXIMIZE LIFETIME VALUE

The Upsell becomes far more important as now you have many opportunities to expand the customer relationship.

Real Customer Example – Moving from Perpetual to Subscription Software

Perpetual SoftwareCustomer has existing Perpetual

Software products

Provide 20% DiscountFor moving from Perpetual to SaaS Software

Remove Perpetual Software

Add SaaS OfferingAdd Product Amendment

Remove Product Amendment

03EARN THE CUSTOMER’S TRUST

Offerings and Editions must be have clear pricing and packaging differences so that a customer can easily see an upgrade path, even if they cannot upgrade today

Edition Strategy

04FLEXIBILI

TY

A flexible system is needed that can align to these kind of Quoting requirements

CPQ is Different for Subscriptions

New Subscription

Amend Subscription

Renew Subscription

Cancel Subscription

New

Upsell

Renewal

Churn

All-New Zuora for Salesforce Release

Includes:

Focuses on supporting the pricing and packaging needs of mature subscription businesses. Deliver CPQ-like functionality in a simple and fully integrated package. Quotes v7.x and 360 v3.x.

Guided Selling Flexible Pricing models

Quoting with approval workflows

Proposal and Contract management (3rd party)

Subscriber Lifecycle Management

Subscription Metrics and Insights

Products and Bundle Configuration

Redesigned Guided Selling Product Selector

Product Selection and Pricing Rules Engine

Introducing Okta

page015

Harrison Riley, Senior Manager Business Systems

Jake Randall, VP Business Operations Okta

Employee SSOto Apps

MFA for Apps or VPN

HR-drivenIT Provisioning

Employee System of Record

Single Customer Profile

Connect to Distributor

& Supplier Identities

Partner/Customer SSO Across Sites

Enterprise Federation for Your Service

Secure Mobile Devices

Provision Mobile Devices

Identity for Employees

ConnectingCustomers& Partners

Mobility Management

$100 (Employees)

$80 (Support)

$2,000 (Customers) $2,770

ARR+ + =$590

(Upgrade EEs)+

213

Silver Edition Gold Edition

+4M

+8M +10

M+$$

Platform

Employee SSOto Apps

MFA for Apps or VPN

HR-drivenIT Provisioning

Employee System of Record

Single Customer Profile

Connect to Distributor

& Supplier Identities

Partner/Customer SSO Across Sites

Enterprise Federation for Your Service

Secure Mobile Devices

Provision Mobile Devices

Identity for Employees

ConnectingCustomers& Partners

Mobility Management

$100(500 Users)

$217(Upgrade)

$150(+ Users) $3,200

ARR+ + =$2,733

(300k MAUs)+

313

“Freemium” ExternalGold Edition

+18M

At Renewal

+26M

+30M

CPQ isn’t a “tool”, it’s a strategy

Pricing and packaging (read: configure, price, quote) can unlock success in your subscription business and help you maximize key metrics:

1. Lifetime Value (LTV)2. Customer Acquisition Cost (CAC)3. Cost to Serve (CTS)

CPQ Challenges at Okta

Product Marketing

Sales

What if we could………?

• Quote products the same way we talk about pricing and packaging?

• Enforce quoting rules that we know make customers successful?

• Automate a segment of our transactions?

• Do this all ourselves?

Protect & Pay for Strategic Assets

Product Users Price per User

Term Length (Months) Annual Total

SSO 100 $2 12 $2,400UD 100 $4 12 $4,800

Prov 100 $1 12 $1,200$8,400

Support - 15% of ARR 12 $1,260

Support Pricing & Discounting Requirements:

1. Support is priced at 15% of ARR 2. Minimum value is 3K3. If ARR > 20K, support must be attached4. If discounted, approval workflows should fire5. Quote should be locked until approved

Support - Minimum 3K 12 $3,000

Promote Customer Success & Retention

CPQ Rule

-

Require Basic

Require Silver

Require Gold

Prompt Custom PS Package Creation

# of Users

1-24

25-249

250-499

500-999

1,000+

Recommend PS Package

Customer

Basic

Silver

Gold

Tailored

Retention Rate with PS Attached

-

96%

92%

90%

87%

Retention Rate w/o PS Attached

-

87%

78%

71%

62%

Disclaimer: This is NOT real data

Automation – all orders aren’t equal

Extend purchasing experience to OktaReduce dependency on human intervention

Customer Acquisition

(Closed Loop Order)

Batch BillingAuto Renew

(lack of) CPQ Extensibility Today

CHAOS!

CPQ Extensibility Tomorrow

The power is in our hands!

Introducing Okta

page026

CPQ Limited Availability Customer

Implementing latest version of Quotes and Rules

5 Week Implementation with some Services Assistance

Okta

BUNDLING - PRODUCT CATALOG CONCEPTS

• To provide value to the Customer, first understand your own Products

• What you sell, typically a SKU• Features - How you describe the Product, Product Attributes that do not “own” a

Price • e.g. Color, Size, Weight

• Product Rate Plans/Charges - How you Go to Market with pricing • e.g. Monthly vs Annual Plan, Setup Fees plus Recurring Fees, 3 Month Discount then 12

Months Normal Pricing

• Many customers have created Products as not real Products, but “Categories” or “Families”

Products

Product Rate Plans

Simple Bundle

*Features exist at each Product level*Rate Plans only at top level

Road Warrior Bundle

Vehicle Diagnostics

Roadside Assistance

Monthly Rate Plan/$50

Base/Add On Example*Rate Plans and Features exist at each Product level

Music Lover Package

Music Services

Spotify

Monthly Rate Plan/$20

Pandora

Monthly Rate Plan - $6

Monthly Rate Plan - $5

Editions / Bundling HybridRoad Warrior

Bundle

Vehicle Diagnostics

Roadside Assistance

Music Lover Package

Music Services

Spotify

Monthly Rate Plan/$20

Pandora

Monthly Rate Plan - $6

Monthly Rate Plan - $5

Monthly Rate Plan/$50

RULES - CONCEPTS

• A rule allows you to automate product and pricing changes on your Quote

• To update pricing e.g. Add a 20% Discount when 2 Products are Added

• To add products e.g. Add a Support Product if Software Exists

• To remove products e.g. Remove Support Product if Software does not Exist

• To show a validation error e.g. Show Error if 2 Products are combined

• And you can do these too:• Spread a Header Discount to Charge Level• Update Prices based on Features• And many more…..

RULES - CONCEPTS

If this… Then Do This…CONDITION

ACTION

askyourself

Who is interested in joining the CPQ LA Program? ?

page033

Check out Zuora Academy for more great info and actionable advice.

All the info you need to build and run an amazing subscription business.

https://www.zuora.com/academy/