Zuora Collect AI Helps Companies Recover Up to 20% More Subscription Revenue

Rhea-AI Summary

Zuora, a leader in subscription management, has launched Zuora Collect AI, enhancing its subscription management suite. This innovative tool utilizes machine learning from extensive transaction data to automate payment retries, leading to a reported revenue recovery increase of 10-20% for users. With a significant shift towards usership, 78% of adults now use subscription services. Collect AI aims to minimize payment failures, which affect nearly half of businesses. The product is designed specifically for recurring and usage-based models, further solidifying Zuora's market position.

Positive

• Zuora Collect AI led to a 10-20% increase in revenue recovery for its users.
• The product utilizes machine learning from billions of transactions to optimize payment retries.
• Customer testimonials report an 18% payment success rate increase within two months.

Negative

• None.

Zuora, Inc., (NYSE:ZUO) today launched Zuora Collect AI -- the newest addition to the subscription management suite of applications, powered by the Zuora Central Platform. Zuora Collect AI leverages machine learning from billions of dollars in transactions and Zuora’s decade of Subscription Economy® expertise to automate smart payment retries. Zuora Collect AI customers reported a revenue recovery increase of 10-20% and improved subscriber retention.

Zuora Collect AI is the newest addition to the company's subscription management suite of applications, powered by the Zuora Central Platform. (Graphic: Business Wire)

The world is shifting away from “ownership” and towards “usership”. Today, 78% of international adults have subscription services and 72% would prefer to pay for what they use rather than pay a flat fee, according to a survey from Harris Poll. Companies that have transformed their business to adapt to this consumer preference are witnessing new growth -- 6 times faster than S&P sales revenue¹.

“Zuora’s decade of expertise driving subscription businesses, while handling billions of data points, enables us to inject this intelligence directly into the product,” said Sri Srinivasan, Chief Product and Engineering Officer at Zuora. “Collect AI is a true expression of our unique value to the market. Our technology is constantly learning from the largest ecosystem and data set in the Subscription Economy to help our customers maximize returns from their subscription services.”

Electronic payments are growing nearly two times faster than the global GDP, according to McKinsey’s Global Payments Report. But nearly half of businesses see more than 7% of their payments fail, according to Forrester in “Rethink Your Payment Strategy To Save Your Customers And Bottom Line”.

Zuora Collect AI 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 impact payment success. With Zuora Collect AI, companies can immediately start to maximize recurring revenue and minimize passive churn.

Customer Daniel Wette, CEO at software company rankingCoach, said, “Zuora Collect AI has helped us recover more revenue and keep more subscribers. We put an end to the rule-based payment retries, and replaced it with machine learning that adapts to every customer. Our payment success rate has already increased by 18% in just two months.”

Zuora Collect AI is purpose built for recurring and usage-based business models. Automated payment retry abilities are powered by machine learning that continually creates insights from over 35 payment gateways, 20 payment methods, and 180 currencies.

Customer Susanna Wright, Fraud and Payments Manager at Whitepages, said, “With Zuora Collect AI, we’ve increased our average payment recovery rate by an additional 10% from what it was when the product had no machine learning. Using an AI-driven retry strategy also prevented us from starting a time-consuming research project that would have required testing to parse out the most optimal times to retry payments.”

“By unifying all subscription revenue processes on a common platform, Zuora is helping customers to ensure predictable revenue growth, customer retention, and bottom-line efficiency,” said Kevin Permenter, Research Manager, Enterprise Applications, IDC.

To learn more about Zuora Collect AI, visit: zuora.com/products/collect-ai

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.

© 2021 Zuora, Inc. All Rights Reserved. Zuora is a trademark or registered trademark of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies.

SOURCE: Zuora Financial

---

¹Subscription Economy Index™, March 2021, https://www.zuora.com/resource/subscription-economy-index/

View source version on businesswire.com: https://www.businesswire.com/news/home/20210317005305/en/

FAQ

What is Zuora Collect AI and how does it work?

Zuora Collect AI is a machine learning tool that automates payment retries, enabling businesses to recover revenue more efficiently.

How much revenue recovery can clients expect with Zuora Collect AI?

Clients have reported a revenue recovery increase of 10-20% after implementing Zuora Collect AI.

What percentage of adults use subscription services according to the latest survey?

According to a recent survey, 78% of adults globally are using subscription services.

How does Zuora Collect AI impact payment success rates?

Users of Zuora Collect AI have reported an increase in payment success rates, with some seeing an 18% improvement in just two months.

Which industries can benefit from Zuora Collect AI?

Zuora Collect AI is designed for recurring and usage-based business models across various industries.