By Kevin Harris, Marketing
With over 20 years of finance experience in the technology industry, Chad Varra’s a self-admitted “data junkie” who has learned that for companies to succeed in the Subscription Economy, CFOs have no choice but to embrace “real-time, trusted data” as a means to ensuring customers are continuously satisfied. As the CFO of SendGrid, Varra recently published an article entitled, “The Subscription Economy CFO: Using Data to Drive Long-Lasting Customer Relationships,” where he strongly urges his fellow subscription business CFOs to forgo the traditional financial systems they’re used to, in favor of new ones that are “automated and flexible.”
In Varra’s article, which was published in Zuora’s new book Accelerate: Success in the Subscription Economy, he not only tries to persuade readers how important data is, but he even offers specific metrics CFOs should regularly utilize. With the rise of the cloud, it seems imperative for SaaS companies to take advantage of the mounds of readily available data and proactively anticipate customers’ needs and wishes. According to Varra, this is the only way to truly decrease churn rates before it’s too late.
SendGrid is a cloud-based Zuora customer that delivers emails on behalf of over 100,000 companies, and Varra is the first to admit how much they rely on dynamic new systems to handle the constantly changing complexities of subscription revenue. After all, companies have so many different options for how and when to charge for their services, not to mention real-time adjustments to some subscriptions, all of which can be difficult to handle in Excel or a traditional accounting system not designed for a subscription company.
Varra is careful to point out that data is not just meant for CFOs, but affects all departments within a subscription company, from marketing to sales. So whether you’re a calculus nerd or an algebra dropout, Varra’s brief article is definitely worth the read if you’re looking for tips on how to gain a leg up in the Subscription Economy and exploit customer-focused metrics.
To read Chad Varra’s full article and learn the four metrics he feels are most important, sign up for the eBook version of “Accelerate: Success in the Subscription Economy.”