Zuora, Inc. (NYSE:ZUO), the leading cloud-based subscription management platform provider, announced today that fashion ERP company AIMS360 had achieved its goal of selling 100% of its software products as subscriptions after adopting the Zuora® platform.
Per EY research, over 90% of technology companies are embracing subscription or consumption business models. While fashion ERP software provider AIMS360 originally sold software through a rental-based business model, the company also decided to transition to subscriptions to better monetize services and build stronger relationships with subscribers over time.
However, the company’s existing accounting system didn’t have sufficient capabilities to handle the complexity and flexibility required to shift from monthly rental payments to a true subscription business model. AIMS360 engaged Zuora to efficiently facilitate the transition.
According to Shahin Kohan, President of AIMS360, the subscription business model only makes sense if you can monetize product offerings. “It is very hard to monetize a subscription,” explains Kohan. “You’re not getting a lot of money from the customer up front. You’re getting little chunks of revenue on the subscription over and over again. Managing the ongoing customer relationship is what’s most important, which is what Zuora has allowed us to do.”
Some of the Zuora capabilities that have allowed AIMS360 to optimize the customer relationship include automated renewals, automated licensing, flexible terms, and the ability to easily manage incentives and discounts.
Metrics provided by Zuora give AIMS360 insight into how the business is performing and where to improve. The “out-of-the-box” metrics from Zuora — including monthly recurring revenue (MRR), churn, and net retention rate — makes it easy for AIMS360 to decide when to adjust prices or make changes to subscription packages.
Many of AIMS360’s customers have needed increased agility as a result of the pandemic’s impact on the fashion industry. Zuora’s flexible platform helped AIMS360 give customers temporary relief through an expiring discount program. With Zuora, AIMS360 has also been able to accurately monitor business impact in real time and adjust the business accordingly to navigate through these challenging times.
“With Zuora, we can make any changes to a customer’s subscription, at any time,” says Kohan. “That agility combined with the visibility we have into the metrics that matter have enabled us to successfully convert the business to 100% subscriptions.”
To read more about AIMS360, check out this case study.
About Zuora, Inc.
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries. Powering the Subscription Economy®, the Zuora platform was architected specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-revenue process seamlessly across billing and revenue recognition. Zuora serves more than 1,000 companies around the world, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom. Headquartered in Silicon Valley, Zuora also operates offices around the world in the U.S., EMEA and APAC. To learn more about the Zuora platform, please visit www.zuora.com.
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SOURCE: Zuora Financial