Redwood City, Calif — March 12, 2021 — Zuora, Inc., (NYSE:ZUO) the leading cloud-based subscription management platform provider, announced today that digital marketing leader rankingCoach increased collections on outstanding invoices by 30% using Zuora’s new Zuora Collect tool.
Revenue leakage due to failed payments continues to challenge subscription businesses around the world. In North America, MGI research estimates that revenue leakage can account for up to 7% of annual revenues. That’s why companies are increasingly looking for new technologies to solve this persistent problem more efficiently, effectively, and with less internal resources.
“We were investing a lot of time in our own retry solution,” says Daniel Wette, CEO and Co-founder of rankingCoach. “With Zuora Collect, we don’t need to do anything — and our results are better. At the end, it’s a no brainer: Zuora Collect earns its money.”
Zuora Collect leverages machine learning to efficiently turn invoices into revenue. Its machine learning model looks at over 15 characteristics of a transaction and ingests new data on a daily basis to leverage the latest trends that may impact payment success. With Zuora Collect, companies can immediately start to maximize recurring revenue and minimize passive churn.
Before employing Zuora Collect, rankingCoach was losing credit card and PayPal payments, resulting in missed revenue opportunities. To make matters worse, when a customer’s payment didn’t go through, their service was simply cancelled and the customer had to register a second time using a different payment method in order to continue with the service. Needless to say, this didn’t make for an optimal subscriber experience.
Since adopting Zuora Collect, rankingCoach’s collection rate on unpaid invoices has risen from 20% to 29%. And not only has revenue increased, but so too has customer retention. With less service interruption, more transparency, and better communication, Zuora Collect has helped rankingCoach build a better subscriber experience.
“Collections is a perfect example of a problem where machine learning makes sense,” says Wette. “Machine learning can go much deeper into customer behavior, in less time than a human can do it. I strongly believe that AI will win the collections game, and businesses like ours that employ Zuora Collect will reap the benefits.”
Read more about rankingCoach in the company case study here.
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