Peachtree 2015 Annual Report Download - page 30

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ONE SAGE
We use numerous qualitative methods internally to monitor our people engagement
and understanding of the strategy, such as the global people survey (read more at page
53). The One Sage strategic pillar enables the entire strategy and as such is associated
with all KPIs rather than a single measure.
WINNING IN THE MARKET
Adoption
of Sage One
Paying subscriptions
173,000
FY14: 86,000
Description:
We are using global products to aract new customers. Our KPI considers the revenue
generating global products and includes the number of paying subscriptions at the end of
the year for Sage One (all editions) and revenue growth for Sage X3. Adoption of Sage Live
will be included during FY16 once the product has been available for a full financial period.
Performance:
The Sage One global roll-out has continued throughout the year, driving the number of
paying subscriptions up by 100% to 173,000. X3 adoption has continued to progress with
11% revenue growth for the year. Growth was particularly strong in the International and
North America regions. Sage Live was fully launched during Q4 leading to a small number
of paying customers as at year-end.
Adoption
of Sage X3
Revenue growth
11%
FY14: 7%
REVOLUTIONISE BUSINESSES
Annualised Soware
Subscription
Base (“ASB”)
£344m
FY14: £268m
Description:
ASB is the leading indicator for how our move to subscription is progressing. Growth is
supported by our latest technology features, which are delivered on subscription. ASB is
the amount of organic soware subscription revenue in the last month of the period
multiplied by twelve.
Performance:
Our progressive move to subscription continues as evidenced by growth in ASB of 28%
for the year to £344m. Multiple initiatives are driving the growth in soware subscription,
however we have had particular success with core product modernisation during the year.
Introducing mobile data sharing features, on subscription, to products such as Sage 50
enabling customers to work more effectively.
CUSTOMERS FOR LIFE
Renewal
rate 84%
FY14: 83%
Description:
If we are successful in delighting customers with technology and service levels, they will
respond when it is time to renew their contracts. Calculated as the number of contracts
successfully renewed in the year as a percentage of those that were due for renewal.
Performance:
Our renewal rate has been consistently high at over 80% for a number of years, which
is testament to the value customers place on our service.
Soware subscription drives even closer relationships and the continuation of our
transition to subscription has helped to drive our renewal rate up to 84%.
* As with all financial measures throughout this report, KPIs (both current and prior year) are stated aer accounting changes described on page 44.
Key performance indicators
Measuring our progress
The measurement of progress in delivering our strategy is important.We track a range of KPIs
to measure performance. Our top level KPIs have been refined in line with our refreshed strategy.
28 The Sage Group plc | Annual Report & Accounts 2015