HR and payroll SaaS requires heavy high-touch service support
Matt Straz · 971 How Namely Passed 1000 Customers and $40m in ARR · Mar 22, 2018 · at 16:17
Namely founder Matt Straz explains why HR and payroll SaaS businesses carry lower gross margins than typical software companies.
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“Because there's a service component to HR payroll benefits business. The hard part of the business is not necessarily doing any one of these things. It's doing all three of these things well together in a coordinated way with a level of touch that may not be like enterprise software like that kind of level of touch. But you definitely have to support your customers and a lot of them are small comp are small HR departments with maybe just one HR person. So there's a fair amount of support that you've got to provide them. It's not just about the product in this.”
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