WEBINAR: B2B Commerce and Subscriptions The …...2015/10/01 · Revenue 2. Achieve Maximum...

WEBINAR:

B2B Commerce and Subscriptions

The New Frontier of Software Sales Oct 1, 2015

Housekeeping Rules

All lines are on mute

Use the Questions Box during the session or tweet at #B2BCommerce. Don’t Wait!

Questions will be answered during the webinar session

Unanswered questions will be followed up after the webinar

This presentation is being recorded for later playback and sharing

Feedback forms will be provided at the end of session

Speakers

Raj Badarinath

VP, Product Marketing & Growth

Services

Avangate

Peter Sheldon

VP and Principal Analyst

Forrester Research Inc.

Traditional Business Models Are being Shattered by Subscriptions

© 2015 Forrester Research, Inc. Reproduction Prohibited 7

"There's a secular movement that's happening ... more to an

annuity relationship as well as a subscription relationship. These

are the long-term relationships we want to have with all customers.”

Satya Nadella, CEO Microsoft

“If you went to bed last night as an industrial company, you’re going to

wake up today as a software and analytics company”

Jeff Immelt, CEO GE

“We’ve gone from selling boxes, cloud, mobility or any other

solution, to partner with customers on their outcomes”

John Chambers, CEO, Cisco


Tomorrow’s subscription products are manifestations of existing products

Content Software

Devices Services

Disruption of traditional business models started in B2C

B2C is the earthquake.

B2B is the tsunami that follows.


B2B eCommerce will account for 12.1% of all B2B sales in the US by 2020

$297


Source: Forrester’s Business Technographics Global Software Survey, 2014

B2B Software buyers increasingly favor SaaS


Enterprise software is aggressively shifting to SaaS business models


Some B2B software categories have already fully shifted to SaaS models


SaaS requires different business structures compared to licensed software vendors


B2B firms have more complex business model requirements

No Industries are immune from the transition to subscription business

models

RocketLawyer offers legal services via subscription bundles

MyFICO offers one time and subscription credit monitoring services

HP’s Instant Ink program replaces cartridges based on pages printed

Taser – yes – that Taser – now has a subscription service business

John Deere lets customers collect and analyze data from their machines


The key 4 trends driving business model transformation in B2B

› A desire for deeper customer relationships

› A thirst for customer insight data

› The shift to the cloud

› The Internet of Things (IOT)


The arrival of the IoT will only accelerate business model innovation

Offer connected device Provide value-added

services/subscriptions

Optimize services

and pricing

Data aggregation

Data storage

Data analysis


Platform agility is key to business model agility

47%

33%

27%

21%

16%

13%

11%

3%

Grow our customer base in existing markets

Pursue new business opportunities in emerging markets

Launch new products

Improve the efficiency of channel and re-seller partner relationships

Accelerate our time-to-market for new product launches

Move from products to services-based relationship with customers

Revise our pricing models

Other

“In which of the following actions can technology help you achieve your firm's goal of growing revenue?”

Base: 4,224 Global technology and business decision-makers who consider growing revenues to be the most important initiative for their organization in the next 12 months and are taking action to achieve this objective; Source: Forrester's Business Technographics Global Priorities And Journey Survey, 2014


Firms need complete flexibility to design, model and test new business models

forrester.com

Thank you

Peter Sheldon [email protected] @peter_sheldon

mailto:[email protected]

Powering Modern Digital Commerce.

33

1. Fastest Path to

Revenue

2. Achieve Maximum

Customer Value

3. Expand Market

Reach

Powers Modern Digital Commerce

Multi-Channel Commerce

Subscription Billing

Global Payments

Merchant Services

…e a li g thousa ds of Software, SaaS and Online

Se i e Co pa ies…

Avangate is a leading digital

o e e platfo …

…to i sta tly o du t

business online

DIGITAL COMMERCE SOLUTION

ORDER MANAGEMENT & BILLING SERVICES

PAYMENTS SERVICES

COMPLIANCE SERVICES

Design, Management & Iterative Improvement

EXPERIENCE REVENUE Revenue Models

Creation, Governance & Analytics

Programs /Promotions Testing & Implementation

MARKETING

Reseller Order & Revenue Management

DISTRIBUTION

ERP Systems Financial Applications Analytic Tools CRM Applications

eCommerce Subscription Billing Marketing Tools Channel Manager Affiliate Network

35

Revenue Leakage Is Rampant Potential Revenue Loss at Every Step

• Ineffective lead, promotion, email

marketing

• Poor reseller visibility, tools, incentives

• Passive churn

• Poor integration with

promotions

• Limited product/service catalog

• Only few touch points

• Disconnected touch points and channels

• Poor conversion

• Lack of local payment optimization

• No self-service or call center support

• Not embedded in product experience

• Poor subscriber event / lifecycle

management

• Limited engagement

• Manual billing steps

• Licensing disconnected from

entitlements

Activate Renew

Revenue Leakage Is A $100 Billion Problem

37

Implications To You

Modern digital commerce services

Simplify and Scale Your

Operations reduce excess costs,

offload burden of complexity

Go Global, Across Your

Ecosystem be local in every country, marketplace,

distributors, connectors

Recover Revenue maximize revenue throughout

the commerce lifecycle

Iterate at New Speeds continually adapt to market

and buyer behavior

Service Every Moment a ui e, a ti ate, upsell, e e …

across every touch point

Deliver the Right Model

at the Right Time drive usage with a multiplicity

of models

Convert Revenue

Leakage to Uplift

40

Activate

Avangate Provides 10 – 20% Revenue Uplift

41

Desktop Enterprise

Va

lue

Product A

Product B

Product C

Product D

Retail

VAR

Direct Sales

Departmental

ABBYY Go-To-Market by Product - Before

Scanning OCR PDF Conversion

Confidential

42

Desktop

Product A

Challenges: Profitability & Slow Time to Market

Scanning OCR PDF Conversion

Confidential

VAR

Web/Online

Direct Sales

43

Results: Turnaround Channel Performance

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 FY2015 Budget

Amazon App Store Avangate Arvato Direct Global

Account Contribution

44

Affiliate Growth as % of Online Revenue

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Avangate Total Affiliate Total

15% 10%

24% 25% 30% 29%

% Contribution of Affiliate Revenue to Total Online Revenue

45

ABBYY and Avangate – Results

• Scalable solution/ go-to-market speed & agility for both B2C & B2B clients

– Flexible regional pricing and purchase options/ configure volume and subscription SKUs

– Additional sales channels: Affiliate program/ Partner portal

– Lau hed Affiliate P og a fo No th A e i a ith A a gate’s help 197% i ease i affiliate sales

– Try and experiment w various business & deployment models: license-based, Cloud-based, perpetual,

subscriptions

• Integrations

– Marketing automation tool (HubSpot) -> improved marketing campaign efficiency

– SheerID (student ID software)

– SF connector (next)

• Launched Salesforce.com App for the AppExchange (Business Card Reader)

• Improved E-commerce KPIs

• E-commerce knowledge, expertise, partners (iAffiliate, Upsellit)

46

Blog: www.avangate.com/blog

Learn More:

Convert Revenue Leakage to Revenue Uplift

ROI of Digital Commerce: Avangate Total Economic Impact (TEI) Report by Forrester

Research

"Co e sio ith a Big C” eBook

Connect with Us!

Continue the Conversation

http://www.avangate.com/blog

http://www.avangate.com/lp/convert-revenue-leakage-to-revenue-uplift.html

http://bit.ly/AV-SF-TEI

http://bit.ly/AV-SF-TEI

http://www.avangate.com/lp/avangate-conversion-ebook-2015.html

http://www.avangate.com/lp/avangate-conversion-ebook-2015.html

47

Avangate B.V.

Amsterdam, The Netherlands

Tel: +31 20 890 8080

Avangate Inc.

Redwood Shores CA., USA

Tel: (650) 249 - 5280

[email protected] www.avangate.com

Thank You

WEBINAR: B2B Commerce and Subscriptions The …...2015/10/01 · Revenue 2. Achieve Maximum...

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