“We came up with the term subscription economy in 2008, and it didn’t work right… so we stopped using it, we tried all other things”. says Tien Tzuo in Startupfood. It’s easy to imagine his frustration, foreseeing the market’s future and genuinely believing in this path, yet potential investors couldn’t envision it.

Tzou’s experience in Salesforce set him apart as a visionary ahead of his time. He witnessed first-hand the limitations of traditional software delivery. Selling software on physical CDs provided minimal customer interaction, a model that seemed increasingly outdated in the emerging digital landscape. His team saw an opportunity to leverage the Internet to deliver software as a service with a “pay-as-you-go” model. This approach enabled continuous customer engagement and retention, revealing the transformative potential of subscription-based business models.

A nudge from industry drivers helped the subscription model burst onto the scene. Amazon and Netflix pioneered the approach with transaction-based charging, while companies like Spotify revolutionized music streaming and Uber and Lyft transformed transportation. Even the luxury sector adapted, with Surf Air offering private aviation subscriptions and high-end carmakers like Porsche launching monthly car access plans. “And then, in 2009, Netflix started truly transforming the subscriptions”, Tzuo recalls, “so we dusted off the term subscription economy and tried it again. This time, it really stuck.”

Follow The Narrative

Crafting a compelling narrative is one thing, yet turning it into a driver of brand awareness is another. After raising their first fund, the Zuora team wove their ‘subscription economy’ concept into their company culture, creating a seamless thread that connected product development, business strategy, and marketing campaigns.

This strategic approach quickly crystallized their vision. They realized that simplifying the backend processes of complex charging cloud systems and streamlining operations would free businesses to focus on what really matters—building lasting customer relationships and generating steady revenue. Within six months, the first prototype was up and running, and they went live with Coremetrics and Marketo as their first customers.

But Tzuo knew that building the technology was only half the battle. As the subscription model’s most passionate advocate, he became its tireless evangelist. Since 2009, he’d been painting a picture of an economy transformed by recurring revenue, sharing insights through countless lectures and interviews that most businesses were only beginning to grasp. His perspective was so compelling that when Index Ventures’ Mike Volpi led Zuora’s Series D funding in 2011, he didn’t just write a check; he also joined the board, declaring, ‘No one understands subscription services as well as Tzuo.’

The Narrative Becomes the Guideline

With such strong backing, Zuora was ready to amplify its message. In 2014, they strengthened their market position by aligning their entire narrative around the subscription economy. Their marketing team transformed complex business concepts into compelling stories about subscription model monetization, producing influential blogs, whitepapers, and transformation guides. This storytelling approach naturally flowed into their sales deck, turning every pitch into a strategic conversation about the future of recurring revenue.

The strategy paid off. Their 2018 IPO validated this long vision. As Mike Volpi observed, ‘It was Tien’s conviction about the shift from a product-based economy to a subscription economy that made it really powerful.’

Riding this wave of success, Zuora doubled down on category leadership, launching their flagship ‘Subscribed’ events where industry leaders explored the future of recurring revenue. Tzuo’s book Subscribed hit the market, becoming a blueprint for businesses navigating the subscription transformation. By 2021, Zuora grounded its thought leadership with the Subscription Economy Index (SEI). This annual report became the industry benchmark for tracking subscription-based businesses’ growth, trends, and health. It established its position by being recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Recurring Billing Applications.

In late 2024, Zuora reached a new milestone with its acquisition by Silver Lake and GIC. This is a testament not only to the company’s growth but also to staying true to their vision. As Silver Lake’s Managing Partner Joe Osnoss and Managing Director Mike Widmann stated, “This investment underscores our confidence in Zuora as the clear leader of monetization solutions for modern recurring revenue businesses.” This investment goes beyond technology; it’s about embracing the vision.

How a Narrative Can Shape an Industry

I first encountered this vision a few years ago while searching for inspiration for a sales pitch. Andy Rasking’s article about the best sales deck, which revealed how Zuora leveraged the “subscription economy” concept, caught my attention, not just as another marketing term but as a compelling story that made complex solutions feel accessible and relevant. This led me to keep following and witnessing the fascinating journey of how a powerful narrative could shape an entire industry.

Coining a term is one of the best marketing tactics, but it won’t last without a solid narrative behind it. A narrative should reflect your (or your company’s) beliefs, making it genuine. Seeing Tien demonstrate how the subscription model transforms diverse industries—from Adobe’s creative tools to Fender’s guitar lessons—shows his deep understanding of customer connection. And that’s, in my opinion, what made it possible for Zuora to create a company culture behind it.

Not every company has the privilege of having its founder have such a strong vision that conforms to a narrative, but marketing teams should still strive for one: to be a northern star that reflects their product, business, and marketing approach.