Applied machine learning leverages Zuora’s unique subscription data and expertise to guide customers on their Journey to Usership
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.
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 revenue.
“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 maximise 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 maximise recurring revenue and minimise 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.