– Hannah Zambrano, Senior Partner, Mindvalley
Mindvalley is a leading provider of e-learning services focused on the area of personal growth
Shifting from transactional to subscription-based billing was straining existing internal systems
Deployed Zuora to remove manual subscription processing
Significantly improved the efficiency of billing processes and positioned company for rapid growth. Recurring revenue has grown close to 25% since implementation
Malaysian-based Mindvalley has created a global business in the provision of learning products dealing with the subject of personal growth. Students can choose from a mix of online materials and forums as well as live events.
Until about mid-2014, the company had offered its products solely as one-off purchases for its students. While this transactional approach had worked, the company discovered there was strong demand for the ability to access multiple products and services via an ongoing subscription model.
“Many of our students were keen to make use of more of the materials that we have available and have an opportunity to do this over an extended period of time,” says Hannah Zambrano, Mindvalley Senior Partner. “It made sense to meet this need by offering a subscription-based access service.”
Initially the company tried using its existing transaction-based billing system to provide the new subscription service. However, as student numbers climbed, it was clear this could not be a viable long-term solution.
“The system could not scale effectively and we were left with a lot of manual processing, which was both inefficient and time consuming” says Zambrano. “We realised we needed another way to undertake our subscription billing.”
After reviewing a range of options on the market, a decision was made in mid-2015 to implement Zuora. Planning and implementation was completed within five months and the system went live in January, 2016.
“We have a goal to get to the stage where between 30 and 40 per cent of our total revenue is coming from subscriptions, and Zuora is supporting us to reach that point,” says Zambrano. “In the five months since we implemented, we have seen our recurring revenue grow an impressive 25%.”
She says Zuora has also given Mindvalley the flexibility to continue with its existing transactional revenues at the same time as growing its new subscription business. Both channels can be handled within Zuora, removing duplication and unnecessary manual processing. “Zuora will allow us to create a self service platform for our customers, which once it is live we anticipate that our support interactions should decrease by around 10%.” Zambrano also added that further business benefits have come from Zuora’s flexible APIs which allow the software to be readily linked with the company’s existing back-end systems.
“Zuora was also appealing for us because of its presence in the Asia-Pacific region. We wanted to know that help and support would be available for us should it be required.”