{"id":657,"date":"2024-08-09T14:31:04","date_gmt":"2024-08-09T21:31:04","guid":{"rendered":"https:\/\/embedded.gusto.com\/blog\/?p=657"},"modified":"2024-08-13T08:26:01","modified_gmt":"2024-08-13T15:26:01","slug":"harnessing-ai-for-client-success-how-honeybook-empowers-independent-service-based-businesses","status":"publish","type":"post","link":"https:\/\/embedded.gusto.com\/blog\/harnessing-ai-for-client-success-how-honeybook-empowers-independent-service-based-businesses\/","title":{"rendered":"Harnessing AI for Client Success: How HoneyBook Empowers Independent Service-Based Businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Managing client flow and administrative tasks remains a significant challenge in the rapidly evolving landscape of independent businesses. Yuval Kesten, Chief Product Officer of <\/span><a href=\"https:\/\/www.honeybook.com\/\"><span style=\"font-weight: 400;\">HoneyBook<\/span><\/a><span style=\"font-weight: 400;\">, shares insights into how a modern platform can alleviate these burdens. Reflecting on his extensive experience at <\/span><a href=\"https:\/\/ai.meta.com\/meta-ai\/\"><span style=\"font-weight: 400;\">Meta<\/span><\/a><span style=\"font-weight: 400;\"> and now at HoneyBook, Yuval details how integrating advanced technologies like AI and embedded fintech simplifies operations and enhances overall efficiency for freelancers and entrepreneurs in service-based businesses.<\/span><\/p>\n<p><b>Podcast Takeaways<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Yuval details the bottom-up culture at Meta and its influence on him.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Building a client flow management platform primarily for independent service providers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">HoneyBook\u2019s target market focuses on committed businesses.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Independents face challenges as their businesses grow.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Integration of embedded fintech features to manage cash flows efficiently.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">HoneyBook\u2019s careful approach to providing loans as part of embedded finance.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The successful adoption of financial features, including tax savings.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The application of generative AI in assisting with client inquiries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Future plans for enhancing platform functionalities with more AI technologies.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Insights on building a team culture that embraces new technologies and efficiencies.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.smbtechinnovators.com\/episodes\/yuval-kesten\"><b>Listen to the podcast<\/b><span style=\"font-weight: 400;\">.<\/span><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">HoneyBook&#8217;s Client-Centric Success Model<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In a recent <\/span><a href=\"https:\/\/www.smbtechinnovators.com\/\"><span style=\"font-weight: 400;\">SMB Tech Innovators<\/span><\/a><span style=\"font-weight: 400;\"> podcast episode, Brian Busch sat down with Yuval Kesten, the Chief Product Officer of HoneyBook, to discuss the company&#8217;s innovative approach to client flow management and the integration of artificial intelligence (AI) into their platform. This conversation highlighted HoneyBook&#8217;s journey from its inception to becoming a vital tool for independent service-based businesses. The discussion covered key insights into the company&#8217;s product strategies, community engagement, and future directions, providing valuable lessons for tech enthusiasts and business owners.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-659 lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3.png\" alt=\"Our vision is life built on passion and purpose. So we try to help clients with all the work that is not their passion and purpose.\u201d - Yuval Kesten\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-768x768.png 768w\" data-sizes=\"(max-width: 1200px) 100vw, 1200px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/1200;\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">A Journey from Meta to HoneyBook<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Yuval Kesten&#8217;s Background and Lessons Learned<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yuval&#8217;s journey to becoming the Chief Product Officer at HoneyBook is a testament to his extensive experience in the tech industry. Having started his career as a software engineer at Twitter, Yuval quickly climbed the ranks to become a director, working on search and news-focused products and later on e-commerce and emerging markets. His tenure at Meta (formerly Facebook) was particularly influential, where he embraced a bottom-up culture that allowed for diverse product and leadership experiences.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">At Meta, Yuval learned to adapt his leadership and product management styles to team dynamics and challenges. This adaptability became crucial when he joined HoneyBook, a company with a distinct culture and mission. Kesten&#8217;s ability to transfer and refine his skills in a new environment highlights the importance of flexibility and continuous learning in a tech career.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">HoneyBook&#8217;s Unique Position in the Market<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HoneyBook is a client flow management platform designed specifically for independent service-based businesses. Yuval describes client flow as the process of selling and delivering personalized services, which is crucial for independents who are passionate about their craft but overwhelmed by administrative tasks. HoneyBook&#8217;s vision is to support these entrepreneurs by handling the mundane aspects of their businesses, such as invoicing, scheduling, and client communications, allowing them to focus on what they love.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Historically, HoneyBook started in the events industry, catering to DJs, florists, event planners, caterers, and photographers. Over the years, the platform expanded to serve a broader range of service-based businesses. The core value proposition of HoneyBook lies in its ability to streamline client interactions and administrative tasks through a combination of CRM (Customer Relationship Management) and online client experiences like contracts, invoices, questionnaires, and brochures.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Understanding the Independent Service-Based Business Community<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Focusing on Committed Businesses<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HoneyBook&#8217;s main focus is on dedicated businesses\u2014those that are committed to their service-based ventures. Yuval explains that the company first identified which audiences it would not focus on, enabling it to concentrate its efforts on those who are passionate and committed to their businesses. This commitment is crucial as it aligns with HoneyBook&#8217;s mission to alleviate the administrative burdens that can overwhelm independent entrepreneurs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Yuval shares a personal anecdote about his sister, an architect who runs her own firm, to illustrate the challenges faced by independents. As her business grew, she became more successful but also more overwhelmed, highlighting the need for effective tools to manage business operations. HoneyBook aims to support independents at various stages of their journey, whether just starting, hiring their first team members, or expanding through a franchise model.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-660 size-full lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1.png\" alt=\"Once you have a big enough community and can interleave their financial products embedded into the rest of your products, you have a big opportunity.\u201d - Yuval Kesten\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-768x768.png 768w\" data-sizes=\"(max-width: 1200px) 100vw, 1200px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/1200;\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Identifying and Supporting Overwhelmed Clients<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HoneyBook employs a sophisticated approach to identify and support clients overwhelmed by their business operations. By segmenting users early in their journey, HoneyBook can tailor its services to those likely to benefit the most from the platform. The company&#8217;s data science team plays a pivotal role in this segmentation process, using various inputs to estimate whether a new user is a committed business.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">One proxy metric used to determine commitment is a business&#8217;s annual revenue. HoneyBook has found that businesses earning above $20,000 annually are more likely to be committed and more likely to benefit from the platform&#8217;s features. This segmentation allows HoneyBook to focus its resources on the users who need them the most, ensuring a more personalized and effective service.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Embedding FinTech for Enhanced Client Experience<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Evolution of HoneyBook&#8217;s Financial Solutions<\/span><\/p>\n<p><span style=\"font-weight: 400;\">HoneyBook&#8217;s journey into financial technology (FinTech) started with a robust invoicing and payment solution, which has been a core part of the platform since its inception. Recognizing the broader financial needs of its users, HoneyBook has since expanded its offerings to include more embedded financial solutions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Yuval explains that HoneyBook&#8217;s unique position allows it to have visibility into its users&#8217; future income, which is crucial for providing practical financial management tools. This insight led to the development of new features aimed at helping users manage their cash flow, taxes, and savings. One of the key steps in this journey was offering loans to members, which served as a test to gauge their trust in HoneyBook for handling their financial needs.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Building Trust with Financial Products<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The loan program&#8217;s success demonstrated that HoneyBook&#8217;s members were willing to trust the platform with more aspects of their financial management. This trust paved the way for introducing business bank accounts, debit cards, and other financial tools that offer a comprehensive view of a business&#8217;s financial health.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">By integrating financial management features with its existing CRM and client flow tools, HoneyBook provides a seamless experience that addresses independent service-based businesses&#8217; administrative and financial needs. This holistic approach simplifies business operations and empowers users to make informed financial decisions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Addressing User Anxiety with Financial Insights<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yuval highlights the importance of empathy and understanding when developing financial products. Many independent business owners experience anxiety when dealing with financial matters, particularly taxes. HoneyBook aims to alleviate this anxiety by providing clear, actionable insights and tools that help users manage their finances confidently.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">One notable feature is the ability to estimate taxes and save for them within the platform. This feature has been highly adopted by users, reflecting the strong demand for effective tax management solutions. HoneyBook also offers other savings buckets, allowing users to allocate funds for various business needs, from equipment purchases to marketing campaigns.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Leveraging AI for Service-based Businesses<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Early Adoption and User Feedback<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HoneyBook has integrated artificial intelligence (AI) into its platform to improve user experience. Despite initial concerns about creatives seeing AI as competition, a survey showed that HoneyBook&#8217;s members are open to adopting AI tools. This positive response has prompted the company to explore different AI applications within the platform.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">AI-Powered Features and Their Impact<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One of the first AI-powered features HoneyBook introduced was automated responses to client inquiries. This feature significantly reduces the time it takes for users to respond to potential clients, addressing a common pain point for many independents. The adoption rate for this feature was impressive, with many users leveraging AI-generated responses to streamline their client communications.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">HoneyBook&#8217;s approach to AI focuses on usability and impact. Each AI feature is measured by its weekly and monthly adoption rates, ensuring the tools are genuinely valuable to users. This data-driven approach allows HoneyBook to prioritize features that significantly reduce user friction and enhance the overall client experience.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-661 lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2.png\" alt=\"\u201cWe have many creatives in our community and were afraid they might be a bit anti-AI. A photographer or graphic designer could consider AI a competitor.\u201d - Yuval Kesten\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-768x768.png 768w\" data-sizes=\"(max-width: 1200px) 100vw, 1200px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/1200;\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Future AI Developments<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Looking ahead, HoneyBook plans to continue expanding its AI capabilities. The company is exploring various use cases where AI can further reduce administrative burdens and improve business operations for its users. Yuval emphasizes that the goal is to deliver practical, high-impact AI solutions that seamlessly integrate into the platform.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Building a Team Culture for Innovation and Efficiency<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Raising the Hiring Bar<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the fast-paced world of tech innovation, it is crucial to build the right team. Yuval underscores the importance of hiring individuals who are not only skilled but also curious and capable of working independently. This approach is essential for maintaining efficiency and fostering innovation, especially in a company that operates with a lean team structure.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Fostering Curiosity and Accountability<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">At HoneyBook, curiosity and accountability are highly valued traits. Yuval believes hiring individuals with these qualities can significantly enhance the company&#8217;s ability to capture new opportunities and navigate the challenges of a rapidly evolving industry. This philosophy is reflected in HoneyBook&#8217;s hiring practices, prioritizing grit and the ability to self-learn over traditional credentials.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Maintaining a Strong Team Culture<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Despite the challenges of scaling and the need for efficiency, HoneyBook is committed to maintaining a strong team culture. This commitment involves hiring the right people and fostering an environment where team members feel empowered to take initiative and explore new ideas. Yuval&#8217;s experience at Meta has influenced his approach to building and nurturing a team culture that supports innovation and personal growth.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">HoneyBook&#8217;s Vision for the Future<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">HoneyBook&#8217;s journey from a niche events management tool to a comprehensive client flow platform for independent service-based businesses is a testament to its commitment to innovation and user-centric design. By leveraging AI and embedded FinTech solutions, HoneyBook continues to enhance its platform, providing valuable tools that help users manage their businesses more effectively.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Yuval&#8217;s insights into the company&#8217;s strategies and culture offer a glimpse into HoneyBook&#8217;s future. With a strong focus on empathy, usability, and continuous improvement, HoneyBook is well-positioned to remain a leader in client flow management, supporting the dreams and passions of independent entrepreneurs across the US and Canada.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.smbtechinnovators.com\/episodes\/yuval-kesten\">Listen to Harnessing AI and service: HoneyBook\u2019s client-centric success with Yuval Kesten<\/a>, follow <\/span><a href=\"https:\/\/www.linkedin.com\/company\/honeybook\/\"><span style=\"font-weight: 400;\">HoneyBook<\/span><\/a><span style=\"font-weight: 400;\"> and connect with <\/span><a href=\"https:\/\/www.linkedin.com\/in\/yuvalk\/\"><span style=\"font-weight: 400;\">Yuval on LinkedIn<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Managing client flow and administrative tasks remains a significant challenge in the rapidly evolving landscape of independent businesses. Yuval Kesten,&#8230;<\/p>\n","protected":false},"author":11,"featured_media":658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-embedded-partners"],"acf":{"exclude_from_embedded_resources":false,"popularity":0,"essentiality":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AI for Service-Based Businesses: HoneyBook&#039;s Success - Embedded Blog<\/title>\n<meta name=\"description\" content=\"Discover how HoneyBook uses AI to empower service-based businesses, streamline client flow, and enhance customer experiences.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/embedded.gusto.com\/blog\/harnessing-ai-for-client-success-how-honeybook-empowers-independent-service-based-businesses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI for Service-Based Businesses: HoneyBook&#039;s Success - 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