Avangate Webinar Leveraging a Commerce Blueprint for Digital Business Success Dec 9, 2014
Speakers Peter Sheldon VP, Principal Analyst serving ebusiness & Channel Strategy Professionals Forrester Research Raj Badarinath VP, Product Marketing & Alliances Avangate 2
Leveraging a Commerce Blueprint for Digital Business Success Peter Sheldon, VP, Principal Analyst @peter_sheldon
Empowered customers have given rise to a new era Source: May 2, 2014, Lessons In Leading The Digital Business Revolution Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 2
The age of the customer is a global phenomenon that will impact every market around the world. ebusiness leaders who are not prepared will lose to more nimble, customer-obsessed competitors.
Globalization is appealing Source: Forrester Research Online Retail Forecast, 2013 To 2018 (US); Forrester Research Online Retail Forecast, 2013 To 2018 (Western Europe); Forrester Research Online Retail Forecast, 2013 To 2018 (Asia Pacific); Forrester Research Online Retail Forecast, 2013 To 2018 (Latin America) 2014 Forrester Research, Inc. Reproduction Prohibited
On average, 18% of ebusiness revenues come from international sales What percent of your overall ebusiness revenues come from customers outside your own country? Source: Q4 2013 Global ebusiness and Channel Strategy Professional Panel Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 5
Today s hyper-connected consumers are rewriting the rules of business Source: July 19, 2014, Welcome To The Era Of Agile Commerce Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 6
Ubiquitous mobile access, social networks, connected products, wearable computing and more are changing the way in which customers engage with brands at an unprecedented pace
In order to remain competitive, companies will continuously exploit digital technologies to create new sources of value and increase operational agility
So how do you build a blueprint for for Digital Commerce success? 2014 Forrester Research, Inc. Reproduction Prohibited 9
Ensure your digital strategy has c-level sponsorship Who sets the digital vision and strategy at your company? Source: Forrester/Russell Reynolds 2014 Digital Business Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 10
Develop an ebusiness team to drive strategy What role does the ebusiness team play in creating or executing your multichannel strategy? Source: Forrester s Q4 2013 Global ebusiness And Channel Strategy Professional Panel Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 11
Define clear transformational roles and responsibilities 2014 Forrester Research, Inc. Reproduction Prohibited 12
Embrace change across four key dimensions Source: October 30 th, 2014 Develop A Digital Business Roadmap That Drives Innovation Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 13
Build an engaging digital strategy Source: October 30 th, 2014 Develop A Digital Business Roadmap That Drives Innovation Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 14
Build an iterative roadmap to digital mastery Source: October 30 th, 2014 Develop A Digital Business Roadmap That Drives Innovation Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 15
Serve the emerging Super Shopper Source: North American Technographics Online Benchmark Survey (Part 1), 2013; European Technographics Online Benchmark Survey, 2013; and Asia Pacific Technographics Online Benchmark Survey, 2013 2014 Forrester Research, Inc. Reproduction Prohibited 16
To always address the always addressable customer Source: September 26, 2014, The Always Addressable Customer Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 17
Successful digital businesses position themselves as ecosystem players
And embrace an ecosystem of digital experience technologies Source: September 3, 2013, TechRadar For AD&D Pros: Digital Customer Experience Technologies, Q3 2013 Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 19
Thank you Peter Sheldon psheldon@forrester.com @peter_sheldon
Commerce Blueprint Raj Badarinath VP, Product Marketing and Alliances
Avangate: 3,800+ Customers 50% CAGR Helping customers accelerate global online revenue since 2006 Deep Focus On Software & XaaS Local HQ in Redwood City, CA Commerce-as-a-Service solution Talented Team of 200+ worldwide Acquired by Francisco Partners in 2013 2
Do You Have a Blueprint for Commerce? 3
Commerce Blueprint Case Studies Commerce Platform VAT + Tax Management Voice Support Full Financial Reconciliation Subscription Billing Revenue Recovery Tools Revenue Rate Optimization Automatic Subscription Billing Account Updater Distribution Affiliate Network Channel Management Efficiency Global Payments Local Payment Methods Cross Border + Foreign Exchange Fees Fraud + Risk Management Chargebacks + Refund Management Over 131 Currencies and 30+ languages Touchpoints Multiple Purchase Flows Pricing Model Flexibility Cart Abandonment + Lead Management Conversion Rate Optimization A/B Testing 7
We grew so fast that we soon needed more than to just accept payments online, CEO and Founder 123ContactForm
Improved client retention Renewal rates increased by 15-20% Go to full case study Increased customer satisfaction Increased speed of support service through seamless integration with provisioning, selfservice and multi-user account management Improved go-to-market capabilities 50% faster client acquisition Doubled the number of countries X 2 served: from 50 to 100
Avangate has helped us to optimize and scale our Consumer business more quickly and costeffectively, Software s Area Vice President, Consumer, Absolute Software
Go to full case study Improved retention rates Improved visibility into recurring business metrics 30-40% Decrease in churn due to paymentrelated reasons Granular reporting on SaaS specific metrics and deep integration with Absolute's Consumer internal systems provided better revenue forecast capabilities Improved go-to-market capabilities Shorter time to market; commerce expertize on penetrating international markets
"The flexibility of the platform and the assistance, knowledge and expertise of the Avangate team have all been key contributors to our increased revenue growth, VP Desktop Business, Telestream
Go to full case study Fast time to market Accelerated direct web sales; Increased sales via multiple touchpoints Increased sales Affiliate channel sales nearly doubled within one year 4% increase in sales through automation alone 2x Improved go-to-market capabilities Expanded into new global markets Introduced subscriptions, pro-rations and other revenue models and pricing strategies
Avangate is enabling us to sell any model of software, via any channel, test and experiment, implement flexible pricing strategies, penetrate new global markets, Global Online Programs Director, Bitdefender
Go to full case study Increased conversion rates Cross-selling in Thank You Page via API increased conversion rates by +10% Boosted Average Order Value by 12% Improved global distribution & revenue Distribution network doubled within one year X 2 95% increase in affiliategenerated revenue within 6 months
VAT 2015 Big Changes For Telecommunications, Broadcasting and Electronic Services Impact to Avangate Vendors? Zero. Avangate Will Handle Everything. VAT Regulations Now : Supplier Location Prime When Vendors located in the EU selling to non-taxable buyers, VAT is accounted for based on supplier location. In this case, Supplier = Avangate. VAT Regulations starting Jan 1, 2015: Shopper Location Prime Any service sold by suppliers located in the EU will be taxable in the Member State where the customer is established, has a permanent address or normally resides. 16
Revenue Recovery Tools The Economics Lost Sales $20 30% Dunning (Future) Hard Declines (Non-Recoverable) Verifi (3 rd Party) $100 $80 100% = $20 Intelligent Payment Routing Account Updater (Internal) Retry Logic Total Vendor Sales = $80 + 70% of Recovered Revenues Commissions PLUS # of Recovered Subscriptions X CLTV Account Updater Total Sales for Vendor Actual Sales @ 80% Auth Rate 17
Industry s First Authorization Dashboard Insights into Authorization & Revenue Recovery 18
Authorization Rates Revenue Recovery Tools: Intelligent Payment Routing 88.89% 88.27% 87.96% 83.56% 82.13% 82.01% Single Payment Gateway Intelligent Payment Routing Sep-14 Oct-14 Nov-14 19
Number of Cards Revenue Recovery Tools: Account Updater Auth rate 74% Auth rate 79% Auth rate 85% Updated cards Authorized cards Sep-14 Oct-14 Nov-14 20
Benefits of Commerce Blueprint More than Payments Global Reach Sense & Rapidly Respond Recurring Revenues Scale Business Gain Distribution Recover Revenues Sell Globally with Local Payment Methods Launch New Bundles & Promotions Offer Multiple Subscription Plans Manage Finance & Ops Easily Leverage Resellers and Affiliates 21
Thank You Avangate Inc. Redwood Shores CA., USA Tel: (650) 249-5280 info@avangate.com Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080 info@avangate.com