Author: Your TechCFO

Subscriptions are more than a financial model, they represent a new way of defining relationships between customers and providers. Today’s customers aren’t simply buying a product, they’re committing to a relationship with a brand. For providers, finding ways big and small to demonstrate that you understand your customer and care about their needs will build trust and loyalty over time.

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The latest edition of the annual Subscription Economy IndexTM (SEI), Zuora’s Subscribed Institute’s landmark index, tracks the rapid ascent of the Subscription Economy. The report reflects the growth metrics of companies around the world in sectors including SaaS, Media, Manufacturing, Internet of Things (IoT), Business Services, and Communications/Video Conferencing.

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Meet Valpak, the one with the blue envelopes. Working with 141 markets across 43 states, Valpak reaches an audience of nearly 41 million with its signature coupon packs. Despite its huge presence, Valpak was relying on a manual quoting process of checks, paper contracts, and a 20- year-old legacy order entry system, which made it impossible for Valpak’s finance and revenue teams to forecast as they lacked clear visibility of their sales process.

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New business models like subscriptions and consumption-based pricing are gaining traction in many industries thanks to newly emerging technologies, including cloud computing, the Internet of Things (IoT), and artificial intelligence, While this creates new go-to-market and growth opportunities, it often strains existing systems and processes.

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Buyers are not only comfortable buying online, but they also usually prefer it. The effects of the recent pandemic events that have caused an explosion in digital commerce have influenced B2B buyers as well. As consumers shifted to online commerce, B2B buyers have also looked to ways to minimize personal contact, through both remote selling and online purchasing. But omni-channel selling means more than just different way to buy. It also alters the cost of selling as buyers can now engage via multiple channels, even if the final order is placed online.

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