New capabilities provide agility and insights
to power consumption-based models
Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern
businesses, today at Subscribed Connect London expanded Zuora® for
Consumption with a native Mediation Engine. Zuora for Consumption
provides a holistic solution to scale consumption-based offerings,
helping companies price on different models, meter raw usage events
across devices and services, inform customers of consumption in
near real-time and is purpose-built to recognize revenue for
consumption.
New technology and fierce competition are compelling businesses
to monetize their products in new ways, with a significant shift
toward consumption-based models. According to new research from
Zuora’s Subscribed Institute and Boston Consulting Group (BCG),
nearly half (46%) of companies analyzed implemented some form of
consumption-based pricing in the last three years, and hybrid
consumption models, businesses that drive both recurring and usage
revenue, increased almost 3X (from 9% to 26%) between 2020 and
2022.1 New technology, including the explosion of artificial
intelligence (AI) and the Internet of Things (IoT) is also expected
to drive adoption of consumption-based models.
However, identifying the right consumption-based model often
takes iteration. It’s important for companies to be able to adapt
as customers' needs and economic conditions change to create
ongoing value and predictability. While tracking consumption
produces a wealth of data on how a product is used, translating
this unpredictable raw usage into the right pricing model can be
challenging and complex. With Zuora’s Mediation Engine, companies
can now create flexible meters and consolidate usage data,
unlocking new customer insights to rapidly experiment with pricing
and better align with customer value.
“Modern businesses are driving recurring growth through a deep
understanding of how subscribers consume their products,” said Kyle
Kolich, Vice President, Product Management, Billing at Zuora.
“Zuora’s new native Mediation Engine helps make this possible,
integrating metering capabilities and pricing recommendations that
improve consumption visibility, accelerate growth and even identify
future opportunities to monetize.”
Part of Zuora for Consumption, the new Mediation Engine
includes:
- Ability to ingest raw usage data at 200k events per
second2
- Out-of-the-box metering components to aggregate, enrich and
transform event data through a drag-and-drop user interface
(UI)
- Ability to apply custom, proprietary logic to meters
- Auditable usage recording tracking throughout rating, billing
and revenue recognition
To learn more about Zuora for Consumption, please visit
here.
Customer & Analyst Quotes
“Constantly evolving industry trends mean we are always thinking
about our pricing, how we present offers, and the data points we
want to collect and make decisions on. More than 90% of leading
companies in 12 industrial sectors rely on AVEVA’s software
solutions to help them design, build, operate, and optimize their
plants and facilities. Adding Zuora for Consumption within our
AVEVA CONNECT platform will give our customers critical visibility
into their consumption habits, allowing us to provide transparency
and deliver value as we iterate over time,” said Kevin Cornwall,
CIO at AVEVA. “Zuora’s unique, end-to-end solution also helps us
simplify the complex revenue recognition and compliance involved in
consumption monetization.”
“Recent IDC research found that while 42% of companies already
have a consumption billing solution, it is inadequate for their
future needs,” said Mark Thomason, Research Director for Digital
Business Models and Monetization at IDC. “The new Mediation Engine
in Zuora for Consumption enables customers to easily import, clean,
and transform high-volume, raw consumption data so that consumption
can be flexibly rated for any type of pricing scheme with a drag
and drop interface.”
“With its new Mediation Engine and the ability to monetize
consumption, subscription and one-time transactions together, Zuora
is providing the revenue platform of tomorrow and powering
businesses with complex consumption-based models,” said Stephen
Hurrell, Vice President and Research Director in the Office of
Revenue at Ventana Research.
About Zuora, Inc.
Zuora provides a leading monetization suite for modern
businesses across all industries, enabling companies to unlock and
grow customer-centric business models. Zuora serves as an
intelligent hub that monetizes and orchestrates the complete quote
to cash and revenue recognition process at scale. Through its
industry leading technology and expertise, Zuora helps more than
1,000 companies around the world, including BMC Software, Box,
Caterpillar, General Motors, Penske Media Corporation, Schneider
Electric, Siemens and Zoom nurture and monetize direct, digital
customer relationships. Headquartered in Silicon Valley, Zuora
operates offices around the world in the Americas, EMEA and APAC.
To learn more about the Zuora monetization suite, please visit
www.zuora.com.
© 2023 Zuora, Inc. All Rights Reserved. Zuora, Subscribed,
Subscription Economy, Powering the Subscription Economy,
Subscription Economy Index, Zephr, and Subscription Experience
Platform are trademarks or registered trademarks of Zuora, Inc.
Third party trademarks mentioned above are owned by their
respective companies. Nothing in this press release should be
construed to the contrary, or as an approval, endorsement or
sponsorship by any third parties of Zuora, Inc. or any aspect of
this press release.
Forward-Looking Statements
This press release contains forward-looking statements that
involve a number of risks, uncertainties and assumptions, including
but not limited to statements regarding the expected benefits and
releases of Zuora Mediation Engine. Any statements that are not
statements of historical fact may be deemed to be forward-looking
statements. Actual results could differ materially from those
stated or implied in forward-looking statements due to a number of
factors, including but not limited to, risks detailed in the “Risk
Factors” section of Zuora’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission (SEC) on June 1, 2023,
as well as other documents that Zuora may file from time to time
with the SEC. The forward-looking statements in this press release
are based on current expectations as of the date of this press
release and Zuora undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. This press release also includes market
data and certain other statistical information. Information that is
based on estimates, forecasts, projections, or similar
methodologies is inherently subject to uncertainties and actual
events or circumstances may differ materially from events and
circumstances reflected in this information.
SOURCE: Zuora Financial
1 “Demystifying consumption-based pricing: How consumption
models contribute to business success,” BCG and Zuora, October 2023
2 Based on Zuora internal testing
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231017081726/en/
Margaret Pack press@zuora.com 619-609-3919
Zuora (NYSE:ZUO)
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