Boost Your Platform’s Stickiness: Leverage Embedded Accounting APIs for Increased User Engagement

In the competitive world of vertical SaaS platforms, you've likely built a powerful solution that addresses a plethora of challenges for your small business customers. Whether it's streamlining inventory management, optimizing customer relationships, or enhancing operational efficiency, your platform is at the heart of your customers' daily operations. However, there's a critical metric that often gets overlooked but can make or break your platform's success: product stickiness.

Understanding Product Stickiness

Product stickiness is a crucial indicator of your platform's value and indispensability to your users. Stickiness measures how frequently and consistently your customers engage with your product. The stickier your platform, the more integral it becomes to your users' daily operations, leading to improved retention rates and higher lifetime value.

Calculating Your Platform's Stickiness

Stickiness is typically calculated by dividing Daily Active Users (DAU) by Monthly Active Users (MAU). However, this formula should be adjusted based on your platform's intended usage. For platforms not used daily, you might consider Weekly Active Users divided by Quarterly Active Users. The result is then converted into a percentage, giving you your Stickiness Percentage.

The Hidden Opportunity in Accounting Functions

While your vertical SaaS platform may excel in many areas, there's likely a significant leak in overall usage when it comes to accounting functions. Many platforms inadvertently send their customers elsewhere to manage spreadsheets or use third-party integrations like QuickBooks for their financial management needs.

The Time Sink of Accounting for SMBs

According to a recent survey from Cornerstone Advisors, small businesses spend an average of 20 hours each week on accounting functions, evenly split between bookkeeping, invoicing, expense tracking, financial reporting, and tax management. Even more concerning, about 1 in 5 businesses spends more than 30 hours a week on these tasks.

This represents a substantial opportunity cost for your platform. Every hour your customers spend outside your platform is an hour they're not experiencing the full value of your solution.

Increasing Stickiness and Retention Through Embedded Accounting

The solution to this leakage? Integrating embedded accounting APIs into your platform. By doing so, you're not just adding a feature – you're creating a comprehensive, one-stop-shop for your customers' business operations.

The Benefits of Embedded Accounting

1. Increased Platform Usage: By bringing accounting functions into your platform, you significantly increase the time users spend within your ecosystem.
2. Improved User Experience: Offering a seamless, integrated solution eliminates the need for users to juggle multiple tools and platforms.
3. Higher Retention Rates: The more time spent on your platform, the less likely your customers are to churn.‍
4. Increased ARPU and LTV: A more comprehensive vertical SaaS solution justifies higher pricing and leads to longer customer lifespans.

The Path to IndispensabilityThe decision to incorporate embedded accounting isn't just about adding a new feature – it's a strategic move that can reshape your product's value proposition and dramatically improve your bottom line. With the potential for increased revenue per customer, improved retention rates, and higher customer lifetime value, the ROI of this integration is clear.In the competitive landscape of vertical SaaS, product stickiness could be the differentiator that sets you apart. By integrating embedded accounting APIs, you're not only addressing a critical need for your customers but also positioning your platform as an indispensable tool for small business success