How to make a real-world business case for embedded payroll

September 7, 2022
Amy Miller

Senior Product Marketing Manager

by 
Amy Miller

Embedding payroll into your platform can boost revenue significantly. Our new ROI calculator and customer survey will tell you how much.

Check is embedded payroll. So what’s that in a nutshell?

It costs a fraction of acquiring a payroll provider or building from scratch. It takes less time to implement. It removes complexity. It scales seamlessly. It’s sticky, so your customers keep coming back for more. It keeps your customers in your ecosystem (vs third-party tools). And the revenue it can generate is, frankly, pretty head-turning.

Our clients at Bambee are just one example of how the Check platform can be used to expand business and deepen customer relationships. After the launch of Bambee Guided Payroll, built on the Check platform, they saw their customer engagement numbers explode thirty-fold, and doubled their adoption goals.

The numbers they’re experiencing are not atypical.

Payroll is a foundational financial service that every company, regardless of its size, needs. From a mom-and-pop donut shop to a multi-billion dollar enterprise, no matter segments you serve, payroll is a wedge that opens up profitable growth opportunities for your SaaS platform in five key ways:

  1. More users: An estimated 30% lift in new user growth rates.
  1. Higher win rates: A way to differentiate and remain competitive.
  1. Increase in retention: An average churn rate of payroll is half that of what is typically seen in SaaS products on average.
  1. Increase in revenue: Payroll is a profitable business. In fact, it can notably lift average revenue per user by up to 50%, with standard pricing of $6 to $10 per employee per month. 
  1. Increase in value: Like we said earlier, every business needs to run payroll. And a payroll product that syncs seamlessly with your platform makes a lot of sense, don’t you think?

We’re a little biased, of course, but we think embedding payroll is one of your best options for expanding the capabilities of your platform. And we can back it up with real numbers. Your numbers.

Understand the payroll opportunity with our new ROI calculator

How do you start to build the business case for embedded payroll? Start with our ROI calculator

By sharing just a little bit of information about your business with us, you’ll receive an estimate on how embedded payroll can increase your average revenue per user (ARPU), customer lifetime value (CLV) and average annual recurring revenue (ARR).

The results from one recent ROI study our calculator generated showed a 34% increase in ARPU, a 6% increase in CLV, and an ARR of 38% by building on top of the Check API. The projected estimate? An ability to build a $35M business within three years.

Our ROI calculator is a good start to building a solid business case, and it only takes a few minutes to complete. But, there’s another step you can take to reveal the revenue potential of embedded payroll.

How can embedded payroll benefit your customers? Ask them with our survey template

So payroll could be profitable. But how do you know it’s what your customers want and need? The best part about surveying your customers is that you’ll get a clear window into what problems they’re facing today with their payroll provider, and how you can help solve them. That’s why we created this payroll product research survey template to help you get started.

Studies show that 82 million U.S. employees — or 54% of the American workforce — are affected by payroll problems. And 49% of American workers will start a new job search after experiencing only two problems with their paycheck. Chances are, your customers (and their employees) have thoughts on how to make this process better. With these insights, you can understand key payroll pain points, help your development team prioritize what to build first, and help your go-to-market team determine how best to sell into your customer base.

While customer surveys can provide value at any time, we’ve found it’s been most effective at one of three stages of the business-building process. 

In the earliest stages of evaluation, surveys can be used to evaluate embedded payroll as a viable product for your platform. This is where customers provide insights into their propensity to buy or share opinions about their current payroll provider.

The survey can also be useful just before the development phase begins. Here, it can help you prioritize what goes into your MVP and also identify the ideal customers to perform beta testing.

Finally, before the official launch of your product, the survey can tell you about the issues your customers care most about, such as cost or ease of use or payroll compliance. These can help formulate valuable marketing insights into how to position, message and package the payroll product.

Start building your business case now

If you’ve already been thinking of ways to further monetize your platform by expanding its capabilities with financial services, our ROI calculator and customer survey can help you build a solid business case for payroll as your first choice. 

Use our ROI calculator now

Start your customer survey now

The content provided here is for general informational purposes only. You should not construe any such information or other material provided as legal, tax, investment, financial, or other advice. ROI studies are created at our sole discretion, and Check reserves the right to reject a submission if we determine that the information you provided may be false, invalid, incomplete, or otherwise inaccurate.

More from the Check blog

February 1, 2023

The ins and outs of worker misclassification, a guide.

Worker misclassification lawsuits are on the rise. In our latest eBook, we provide some background on the state of worker misclassification today, and identify five key considerations for employers.

Read more >

January 19, 2023

The Unlikely Story of a British Tea Company, the First Business Computer, and Payroll

The development of the electronic digital computer was hastened dramatically by World War II and the accompanying need to quickly and efficiently do things like calculate the trajectories of bombs and rockets, or decode encrypted messages sent by the enemy. The first computer of this kind, dubbed “Colossus,” was developed at Bletchley Park in the U.K. between 1943 and 1945 to help crack Nazi codes.

Read more >