Back in 2017, Ben Thompson at Stratechery wrote about "The Great Unbundling" - the trend of companies offering point solutions and best-of-breed tools for specific use cases. But as we enter 2024, the tides have turned, and the software industry is experiencing a great rebundling.
The Shift from Point Solutions to Integrated Platforms
Point solutions were all the rage when capital was cheap and employees could freely deploy their own budgets for tools and services. However, the current economic environment is vastly different. With cash becoming scarcer, software budgets have moved back under the watchful eye of CFOs. Efficiency is being rewarded over bloated tech stacks.
Lean times call for lean, integrated software that doesn't require juggling dozens of disparate point solutions. Point solutions need to expand across multiple value props to keep their seat at the table. To borrow from Parker Conrad, becoming a "compound startup" that combines multiple capabilities is the best way to fight customer churn and become irreplaceable.
The Power of Payroll in Vertical SaaS
Payroll is the perfect offering to add to any Vertical SaaS product suite. It drives growth, reduces churn, deepens customer relationships, and opens up new revenue opportunities. By embedding payroll into your platform, you can:
- Increase customer lifetime value by 25%
- Increase average revenue per user (ARPU) by 40%
- Encourage customers to use the core vertical SaaS app more
- Pave the way to offer complementary services like instant payouts, payroll cards, earned wage access, benefits, and lending
- Solve a universal pain point for customers, as payroll is a complex and time-consuming process, especially with industry-specific nuances
The Great Rebundling is Underway
The unbundling trend has gone full circle. Software is rebundling into broader platforms that can justify their costs by delivering compounding value. The great rebundling is underway, and the Rollfi team can help position you for success. By integrating payroll into your Vertical SaaS platform, you can unlock new growth opportunities, deepen customer relationships, and stay ahead of the curve in the ever-evolving software landscape.
About Rollfi
Rollfi provides the fastest way for Banks, Vertical SaaS companies, Accounting Firms, and Fintechs to integrate payroll and benefits into their offerings through our white-label solutions + robust APIs. By leveraging Rollfi’s infrastructure, businesses can unlock new revenue streams, increase customer retention, and access valuable payroll data insights. With rapid deployment and comprehensive coverage, Rollfi transforms your platform into a one-stop-shop for essential services, driving growth and enhancing customer satisfaction.
