webinar: b2b commerce and subscriptions the new frontier
TRANSCRIPT
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Speakers
Raj Badarinath
VP, Product Marketing & Growth
Services
Avangate
Peter Sheldon
VP and Principal Analyst
Forrester Research Inc.
© 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
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
Tomorrow’s subscription products are manifestations of existing products
Content Software
Devices Services
© 2015 Forrester Research, Inc. Reproduction Prohibited 12
B2B eCommerce will account for 12.1% of all B2B sales in the US by 2020
$297
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
Source: Forrester’s Business Technographics Global Software Survey, 2014
B2B Software buyers increasingly favor SaaS
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
Enterprise software is aggressively shifting to SaaS business models
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Some B2B software categories have already fully shifted to SaaS models
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
SaaS requires different business structures compared to licensed software vendors
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
B2B firms have more complex business model requirements
© 2014 Forrester Research, Inc. Reproduction Prohibited 26
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)
© 2015 Forrester Research, Inc. Reproduction Prohibited 27
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
© 2015 Forrester Research, Inc. Reproduction Prohibited 28
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
© 2015 Forrester Research, Inc. Reproduction Prohibited 29
Firms need complete flexibility to design, model and test new business models
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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
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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
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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
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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
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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
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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
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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
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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)
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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
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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