Report - Zuora

Subscription Economy Index™

The first anniversary edition of the Subscription Economy Index™

It’s the first anniversary of the launch of the Subscription Economy Index™ (SEI), our landmark index that tracks the rapid ascent of the Subscription Economy.

In the 10 years since we first starting saying that the world was moving to the Subscription Economy, we’ve seen that vision realized. Now we’re seeing that the Subscription Economy has become the engine that’s driving economic growth. This latest SEI reinforces this point.

In this update, Zuora Chief Data Scientist Carl Gold shares key findings and a usage-based billing growth guide.

Highlights include:

  • Subscription business revenue growing 8x faster than S&P 500, 17.6% average annual growth for SEI sales versus 2.2% average annual growth for the S&P sales per share.
  • The Subscription Economy tracks with broader market trends, tracking with the overall U.S. GDP slowdown around the end of 2016, and subsequent acceleration in 2017.
  • Usage-based pricing is an effective growth tool. Subscription companies that employed a small amount of usage-based billing in their revenue mix (less than 10%) grew more than twice as fast on average as companies that did not employ usage-based billing.

Please download the latest report to read the latest key metrics (as of Q3 2017) on:

  • The Subscription Economy Index™ vs S&P 500 & U.S. Retail Sales
  • Usage-Based Billing by Business Model and Vertical
  • The Two Growth Levers: ARPA & Net Accounts
  • Subscription Revenue Growth by Business Model, Revenue Band, and Industry
  • Subscription Churn Rates by Business Model, Industry, Company Size, and Region
  • B2B, B2C, and B2Any Sub-Indices
  • Growth by Region: EMEA vs North America

Over the past few years, there’s been a lot of talk about subscription companies. Today, Zuora, a company that powers subscription-based businesses, which we wrote about in the magazine last year, launched an index to track what its CEO Tien Tzuo calls ‘the Subscription Economy.’” - Forbes

“Because Zuora is a company that collects a great deal of data, Tzuo is able to say with confidence that 70 percent of customer growth was attributable to expanding footprints (upsells, cross-sells, renewals) rather than to the addition of net new customers. Zuora anonymizes customer data to derive such insights, which it publishes as the Subscription Economy Index, or SEI.”CRMBuyer

The breadth and depth of the data analyzed in this study speak to the rapid ascent of the Subscription Economy.” -  eWeek