Strategic Goal
Build and launch subscription sales and management capabilities internally and externally with premium UX
The Challenge: Transitioning to
a Subscription Model
Several years ago, a global construction company introduced its innovative engineering software, rapidly gaining traction in the market. This software revolutionized the process of designing structural connections, saving engineers time and resources.
While successful, the company faced the challenge of effectively monetizing this offering by transitioning from traditional product-based sales to subscription models. This shift required navigating complexities like recurring billing, dynamic pricing, and customer churn.
Recognizing this need, the company conducted a pilot program using ZUORA Billing specifically for software sales. However, they realized the need for a comprehensive solution integrated with their existing SAP stack. Additionally, customers desired the ability to simulate billing effects resulting from license modifications.
Partnering with CLARITY
for Subscription Monetization
The construction company sought CLARITY's expertise in software monetization strategies. Recognizing the client's software's potential for recurring revenue, CLARITY proposed implementing SAP Subscription Billing, a robust tool designed for subscription and usage-based services.
A successful Proof of Concept (PoC) demonstrated the tool’s capabilities, paving the way for integrating SAP Subscription Billing with the existing ERP platform. Furthermore, CLARITY collaborated with the client to develop a user-friendly subscription management portal, empowering software users to manage subscriptions with features like upsell/downsell, pause/resume, and cancellation.
Enhancing Customer Experience
with Self-Service
Understanding the importance of seamless customer experiences, CLARITY implemented self-service capabilities. This allows users to manage subscriptions, billing, and accounts independently, fostering a sense of autonomy and facilitating tasks like signing up for trials or subscriptions, modifying subscription plans, and accessing billing information.
The absence of self-service options can lead to user frustration and hinder revenue growth. Conversely, robust self-service solutions enhance customer engagement, streamline operations, and drive growth in the subscription market.
Systems involved
SAP Commerce Cloud, SAP Subscription Billing, SAP Cloud Platform Integration, Revenera, SAP Event Mesh, SAP S/4HANA
Results and Impact
CLARITY's solutions led to a significant increase in the adoption and usage of the construction company's engineering software.
The transition to a subscription model, facilitated by CLARITY, resulted in a substantial rise in revenue streams for the software.
Self-service capabilities empowered users and streamlined customer interactions, fostering loyalty and engagement.
The introduction of customer-centric features like subscription management and billing information access facilitated market expansion and attracted new customers.
Subscription-based software usage led engineers, the core user base, to purchase additional hardware products from the manufacturer, increasing revenue across multiple departments.
By transforming its software sales strategy and enhancing customer experience, the construction company solidified its position within the industry.
The implemented solutions provide a scalable platform, allowing the construction company to adapt to evolving market demands and ensure continued profitability.
Conclusion
This case study demonstrates how CLARITY helped a construction leader unlock new revenue streams and achieve sustainable growth. It serves as an example for businesses across industries to explore subscription-based models and enhance revenue generation. CLARITY's flexible service model caters to each customer's needs, paving a clear path toward value-driven subscription solutions.