Nauto’s subscription management best practices have helped the IoT device company manage subscription churn by driving a superior customer experience.



“Having the capabilities of a subscription management system when being an IoT startup is not necessarily front of mind at that [startup] stage, even though it’s critical because the consequences of not actually implementing it right at the beginning are significant.” -Ilan Horstein, Chief Legal Officer & Head of Business Operations, Nauto 




Business Challenge

IoT device companies face unique challenges as they work to deliver both a device alongside a subscription service offering. Given the innovation behind these devices — devices like Nauto’s AI-driven fleet management software that can anticipate driver behavior to reduce collisions — this intellectual property tends to be the development priority, often at the expense of business process development.

However, as Ilan Horstein, Chief Legal Officer & Head of Business Operations, at Nauto, points out, “What investors really care about, and what is going to build the value of an organization, is the subscriptions and that annual recurring revenue.”

Like many IoT device companies, Nauto focused first on developing its product rather than subscription management systems. As many companies find, however, with sales growth comes movement in subscriptions, ranging from subscriber churn to gray market sales of IoT devices. Customers start to ask questions that require insight into historical transactions within the subscription lifecycle.

“No one is thinking about those things at the beginning,” Horstein says. “This is the downfall of most of the systems out there, even rudimentary support subscriptions.”


Nauto soon recognized the need to separate its AI software from business software solutions to simplify billings and revenue recognition.

By implementing 360 Subscription Billing, and its plugin Salesforce to NetSuite integrator, Nauto could streamline processes from the first lead and quote through ordering, reporting, and revenue recognition. With this shift, it became easier to systematically manage the device and subscription and leverage deeper insight into the complete subscription life cycle.

“There are tough stories in every IoT company with a subscription model where the life cycle of the subscription is not actually represented inside the systems they have,” Horstein says. “That kind of information is supported by a system like 360 Subscription Billing, which can give a complete view of a customer’s subscription lifecycle. It really helps in those situations.”

With this stronger historic transaction insight, it becomes easier for companies like Nauto to scale and competitively adapt to market changes.

For more insight into how subscription management solutions can help, watch the complete interview with Horstein, or download our free guide outlining these and other critical IoT company mistakes that limit scaling and growth.


Watch the Video on YOUTUBE:



Download 5 Critical IoT Company Mistakes That Limit Scaling & Growth.  
Download the PDF '5 Critical IoT Company Mistakes'