REDWOOD CITY, Calif. - Zuora, Inc. (NYSE: ZUO), the leading cloud-based subscription management platform, today announced Zuora® CPQ X, a new, enhanced Configure, Price, Quote (CPQ) offering. Zuora CPQ is uniquely designed to quote for The Subscription Economy®, developed to manage the varying service terms and frequent changes that occur across the entire subscriber lifecycle.
Subscription Economy revenue has grown more than 437% in the past decade as buying behaviors have moved from owning physical products toward accessing ongoing services. With this shift, businesses are transforming their sales processes as they evolve from one-time product sales to an ongoing customer relationship. Subscription services add complex dimensions to the selling process, such as the length of the service, temporary discounts, and payment schedules. And although product purchases traditionally involve one deal and one invoice, subscription companies on average make four changes per service per year, such as to upgrade, downgrade, or add on new services.
Zuora CPQ X is purpose-built to address these new challenges, ensuring that both sales and finance teams can support quotes and orders throughout the subscriber lifecycle. Developed for the variety of terms with different quotes necessary in any combination of subscriptions, one-time, and usage-based offers, Zuora CPQ can natively ramp up deals over time, apply future period discounts, or even extend the duration of a contract. It’s also configured to handle changing orders when subscriptions are regularly modified.
“Modern businesses must be prepared to handle the dynamic nature of ongoing services that change and grow over time,” said Sri Srinivasan, Chief Product and Engineering Officer at Zuora. “CPQ X has redesigned quoting for the subscription-first world, where unlike the previous product-centric world, quoting is constant. This means sales and finance teams must be in sync, from bookings to billings, collections, and revenue recognition.”
Zuora CPQ works with Zuora Billing, Zuora Revenue, and Zuora Collect to support the full quote-to-revenue process with one solution.
“Most CPQ solutions focus on customising physical product options yet overlook the ability for customers to configure their contract options, terms and conditions and relate these to pricing,” said Igor Stenmark, Co-Founder and Managing Director at MGI Research. “Organisations rolling out modern digital services seek to empower their customers to self-manage the frequent changes in the economic relationship. There is an opportunity to remove friction from this process, improve sales efficacy, foster greater collaboration and natively connect deal desks, billing and revenue management teams.”
Zuora CPQ enables companies to configure changing service terms on a single page, boosting sales team productivity with up to 35% faster quoting. Sales teams can measure the real-time impact on bookings with live metrics, and add any combination of products and services to their subscription deals.