Zuora VP Matt Darrow: The Intelligence of the Subscription Model

Zuora VP Matt Darrow: The Intelligence of the Subscription Model

By Vivian Wagner

Jun 2, 2017 1:43 PM PT

Matt Darrow is a vice president and general manager of product at

In this exclusive interview, Darrow shares his thoughts on boosting customer engagement in the new subscription economy.

Zuora VP Matt Darrow

CRM Buyer: How does the subscription model improve customer engagement?

Matt Darrow: We’ve been talking about this in the industry for a while now — how we’re moving toward a subscription economy. The way that we define the word ‘subscription,’ however, maybe isn’t quite what you’d expect.

We think of “subscription” broadly. It’s when companies do business with customers with whom they have a known relationship, and those relationships are sticky. The subscription model is great for engagement because companies know that in order to be successful they need to deliver ongoing services that keep providing value over and over again, because naturally clients can turn off their service and go somewhere else if they’re not getting the outcome that they expect.

The benefit for the business is they get this long-term predictable revenue, by building a relationship they know and can cultivate over time, but in order to keep those customers and keep them engaged, businesses have to keep providing valuable services. They need to keep delivering new innovation, new services.

We’ve come to expect that in both our personal lives and our business lives when we interact with services. Customers benefit from the subscription model because they’re getting access to ongoing innovation, and it’s wonderful from the customer engagement side, because companies are giving customers more than just a product.

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