(100) From Subscriptions to Total Monetization with Tien Tzuo of Zuora

Law Subscribed

Tien Tzuo, CEO of Zuora and a pioneer in the subscription economy, shares his journey and insights on transforming traditional business models into subscription-based ones. With over two decades of experience, starting with Salesforce, Tzuo has been at the forefront of the shift towards recurring revenue models, advocating for their application beyond software to various industries. His company, Zuora, provides technology that assists businesses in adopting subscription models, catering to a wide range of clients from tech giants like Salesforce and Zoom to traditional companies like General Motors and The New York Times. In 2018, Tzuo authored the book “Subscribed” to distill the lessons learned from diverse customer experiences, positioning himself as a leading voice in the subscription economy.

Tzuo discusses the challenges and opportunities presented by the subscription model, particularly in professional services like legal and accounting. He recounts his experience with Deloitte Australia, which transitioned to a subscription model for its accounting services, offering a fixed monthly fee for basic services and charging separately for additional expertise. This approach not only transformed the client-provider dynamic by eliminating the disincentive to use services but also led to a more efficient, higher-margin business for Deloitte. Tzuo advocates for more flexibility in professional services, suggesting that subscription models can enhance client relationships and service value.

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