{"id":672,"date":"2024-08-28T08:56:24","date_gmt":"2024-08-28T15:56:24","guid":{"rendered":"https:\/\/embedded.gusto.com\/blog\/?p=672"},"modified":"2024-08-28T08:56:24","modified_gmt":"2024-08-28T15:56:24","slug":"embedded-finance-smb-vagaro","status":"publish","type":"post","link":"https:\/\/embedded.gusto.com\/blog\/embedded-finance-smb-vagaro\/","title":{"rendered":"Embedded Finance for SMB Platforms: How Vagaro is Leading the Way"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Discover how a passion for technology turns into a groundbreaking solution that helps businesses thrive. <\/span><a href=\"https:\/\/www.linkedin.com\/in\/fredhelou\/\"><span style=\"font-weight: 400;\">Fred Helou<\/span><\/a><span style=\"font-weight: 400;\">, Founder and CEO of <\/span><a href=\"https:\/\/www.linkedin.com\/company\/vagaro\/\"><span style=\"font-weight: 400;\">Vagaro<\/span><\/a><span style=\"font-weight: 400;\">, shares his journey to becoming a successful entrepreneur in the US. With a background in engineering and a love for tech, Fred discusses the challenges and successes he faced while building Vagaro, a platform that provides scheduling and business management solutions for the beauty, wellness and fitness industries.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Key Takeaways<\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fred\u2019s journey from Lebanon to the US and his early tech interests.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The tough start of Vagaro and why persistence matters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Vagaro helps businesses run smoothly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Embedded finance products and their impact.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The effects of COVID-19 on the beauty and wellness industry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adapting to change and staying innovative.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The role of AI in customer communication.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll integration and its benefits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The evolution of customer needs and platform expansion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fred\u2019s vision for Vagaro\u2019s future.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Listen to the podcast or find out more by reading on.<\/b><\/p>\n<p><iframe style=\"border-radius: 12px;\" data-src=\"https:\/\/open.spotify.com\/embed\/episode\/1RGcynjO5Mwv8tJNI6QEZE?utm_source=generator\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/p>\n<h2><span style=\"font-weight: 400;\">The Inspiration Behind Vagaro: Addressing a Global Need<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred Helou was inspired to create Vagaro by a personal need he encountered while on a business trip to Korea in the late 90s. Struggling to book a haircut online, Fred recognized a significant gap in the market for convenient online booking services. This realization led him to envision a platform to make booking salon services easier and more accessible to consumers. In 2009, Fred turned this vision into reality by launching Vagaro, initially focusing on the salon industry but with the broader goal of serving a wide range of service-oriented businesses.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fred&#8217;s background in software engineering, combined with his sister-in-law&#8217;s experience as a booth renter in a salon, played a crucial role in shaping Vagaro. From the beginning, Vagaro emphasized mobile-first solutions, capitalizing on the rise of smartphones and cloud technology to meet the evolving needs of service providers and consumers. This early focus on mobility and convenience set the foundation for Vagaro&#8217;s growth and success in the competitive landscape of service-oriented platforms.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-674 lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3.png\" alt=\"\u201cIt\u2019s time for us to think of something new and bring it to the industry, even if they\u2019re not asking for it. We have a good sense that if we offer it, it\u2019s going to be a game-changer.\u201d\nFred Helou,\nFounder and CEO, Vagaro\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/1-3-768x768.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;\">Vagaro&#8217;s Vision: How Embedded Finance Transforms SMB Platforms<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of Vagaro&#8217;s key differentiators is its focus on mobile technology. From day one, the company prioritized creating an iPhone and Android app that allows salon owners and professionals to manage their schedules from their phones. The platform also integrates with front-desk operations, ensuring everything stays connected across devices.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Why Vagaro Stands Out<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mobile Integration:<\/b><span style=\"font-weight: 400;\"> Vagaro was among the first in the salon industry to offer mobile apps for scheduling, payments, and customer management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cloud-Based Syncing:<\/b><span style=\"font-weight: 400;\"> The platform allows booth renters and front-desk staff to access real-time data, keeping operations streamlined and organized.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Marketplace Feature:<\/b><span style=\"font-weight: 400;\"> Vagaro&#8217;s marketplace enables customers to book services based on availability and reviews, offering flexibility and convenience for both customers and businesses.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Staying Close to Customer Needs: The Vagaro Approach<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred emphasizes that one key factor in Vagaro&#8217;s success has been its commitment to listening to customer feedback. In the early years, Fred handled customer support, which allowed him to stay deeply connected to the users and their needs. This customer-centric approach has continued to shape Vagaro&#8217;s development, as the company prioritizes features that solve real-world problems for service professionals.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>How Vagaro Stays Connected to Users<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer Support as a Core Value:<\/b><span style=\"font-weight: 400;\"> Fred handled customer support for the first four years, establishing a direct line to users&#8217; needs and pain points.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Feature Requests:<\/b><span style=\"font-weight: 400;\"> Vagaro tracks customer feature requests and prioritizes the most popular ones, ensuring the platform evolves based on real feedback.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Balancing Innovation and Requests:<\/b><span style=\"font-weight: 400;\"> While customer requests are critical, Vagaro also anticipates needs and introduces new features that users may not have asked for but ultimately find valuable.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-675 lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1.png\" alt=\"\u201cCustomers say, \u2018I want this button here.\u2019 Always approach it from, what is the problem you\u2019re trying to solve and the most elegant way to solve it?\u201d\nFred Helou,\nFounder and CEO, Vagaro\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/2-1-768x768.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<h2><span style=\"font-weight: 400;\">Expanding into New Industries: Fitness, Spas, and More<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As Vagaro grew, the company expanded its reach beyond salons to include spas, fitness studios, and other service-oriented industries. This expansion was not just a strategic move but primarily driven by customer demand. Spa and fitness professionals who had observed Vagaro&#8217;s success in salons expressed interest in using the platform for their businesses, and their feedback was integral to our expansion. In response, Vagaro adapted its existing features to cater to the unique needs of these industries while maintaining its core focus on flexibility and usability, ensuring that the platform could serve a broader range of service providers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Vagaro introduced several key features tailored to these new industries to support this expansion. The platform was enhanced for spas with service menus, intake forms, and other spa-specific tools. As fitness businesses began using the platform, Vagaro added features like class scheduling, membership management, and other fitness-oriented functionalities. Additionally, many features initially developed for specific industries, such as memberships and service menus, proved versatile and were later adopted by businesses across different sectors, highlighting the adaptability of the Vagaro platform.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Vagaro&#8217;s Future in Embedded Finance for SMB Platforms<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the more recent innovations in Vagaro&#8217;s evolution has been the introduction of embedded finance products. Features like &#8220;pay later&#8221; options and capital advances were developed in response to customer demand. Many service-based businesses, such as spas and fitness studios, require flexible payment options for high-ticket services. Vagaro&#8217;s embedded finance features help SMBs offer more payment flexibility while ensuring they can access capital when needed.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Embedded Finance Features in Vagaro<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pay Later Options:<\/b><span style=\"font-weight: 400;\"> Customers can finance large purchases, such as memberships or expensive services, without upfront payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Capital Advances:<\/b><span style=\"font-weight: 400;\"> Vagaro helps businesses access capital based on their credit card transactions, providing financial flexibility during growth periods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer-Led Innovation:<\/b><span style=\"font-weight: 400;\"> While features like &#8220;pay later&#8221; were implemented based on customer requests, Vagaro introduced anticipated emerging trends.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Embedding Payroll with Gusto: Simplifying Complex Processes<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Vagaro had been offering payroll features for years, allowing businesses to manage commissions, hourly pay, and other payment methods. However, when Gusto introduced <a href=\"https:\/\/embedded.gusto.com\">embedded payroll<\/a>, it provided a seamless solution that eliminated the need for separate logins and systems. With Gusto&#8217;s embedded payroll integration, Vagaro users now have a fully integrated system that handles everything from employee time tracking to automated payroll.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Key Benefits of Vagaro&#8217;s Embedded Payroll<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seamless Integration:<\/b><span style=\"font-weight: 400;\"> Payroll, scheduling, and employee management are now handled within a single system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Custom Payroll Solutions:<\/b><span style=\"font-weight: 400;\"> Vagaro&#8217;s payroll features are flexible enough to accommodate the unique needs of service industries, such as commission-based pay and service-specific bonuses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased Adoption:<\/b><span style=\"font-weight: 400;\"> The embedded payroll integration has made it easier for businesses to manage payroll, resulting in higher adoption rates among Vagaro users.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Driving Feature Adoption: Best Practices for SMB Platforms<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred shares Vagaro&#8217;s approach to driving feature adoption across its platform, noting that product-led growth has been a critical strategy. By integrating prompts within the software that encourage users to try new features, Vagaro has successfully increased the uptake of its embedded finance and payroll features. Additionally, Fred emphasizes the importance of using data to suggest relevant features to businesses based on their size, industry, and usage patterns.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Best Practices for Driving Feature Adoption<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Product-Led Prompts:<\/b><span style=\"font-weight: 400;\"> Vagaro prompts users with feature suggestions during relevant moments in their workflow, encouraging adoption without being overly salesy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data-Driven Suggestions:<\/b><span style=\"font-weight: 400;\"> By analyzing user data, Vagaro identifies which features most likely benefit specific businesses and targets them accordingly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Focus on Usability:<\/b><span style=\"font-weight: 400;\"> Vagaro&#8217;s features are intuitive and easy to set up, reducing friction and increasing users&#8217; likelihood of adopting them.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Delivering a Unified System: The Power of Vertical SaaS<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Vagaro serves as the &#8220;source of truth&#8221; for businesses by ensuring that every aspect of the platform\u2014from payroll processing to customer communications\u2014operates seamlessly within a single, unified system. This deep integration is one of Vagaro&#8217;s core strengths, as it allows small and medium-sized businesses (SMBs) to manage critical functions like pricing, commissions, and website updates without relying on multiple, disconnected systems. By centralizing these operations, Vagaro not only simplifies business management but also enhances the overall efficiency of its users.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Why Vertical SaaS Works for Vagaro<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The unified operations offered by Vagaro allow businesses to connect all aspects of management, from front-office to back-office tasks and customer interactions, within one cohesive platform. This integration ensures data flows accurately across the system, leading to smoother operations and fewer errors. Additionally, this setup guarantees a consistent and intuitive user experience, whether businesses update their website, process payroll, or engage with customers, making Vagaro an indispensable tool for managing all facets of business operations.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">What&#8217;s Next for Vagaro: Exciting New Features<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred shared some of Vagaro&#8217;s latest innovations, including a new app called <\/span><b>Connect<\/b><span style=\"font-weight: 400;\">, which enables hairstylists and other professionals to communicate with one another and their clients without using personal devices. This app further simplifies customer interactions by allowing businesses to send messages directly to clients about appointments, special events, or updates\u2014all from within the Vagaro system.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fred also teased the upcoming integration of <\/span><b>AI-powered chat<\/b><span style=\"font-weight: 400;\"> features into the app. Conversational AI will assist businesses by handling routine customer inquiries, such as appointment rescheduling, while freeing up staff to focus on in-person service. This technology reflects Vagaro&#8217;s commitment to reducing the burden on business owners and staff while enhancing customer service.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Key Features in Development<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Connect App:<\/b><span style=\"font-weight: 400;\"> Allows internal communication among staff and external communication with customers, all from within the Vagaro system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Conversational AI:<\/b><span style=\"font-weight: 400;\"> Automates customer service tasks, such as appointment scheduling and answering common questions, helping businesses operate more efficiently.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Integrated Messaging:<\/b><span style=\"font-weight: 400;\"> Clients can communicate with businesses directly via Vagaro&#8217;s marketplace, website widgets, or the business&#8217;s site, ensuring consistent communication across platforms.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Embedding AI for Better Customer Communication<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Vagaro&#8217;s integration of AI for customer communication demonstrates its forward-thinking approach to improving SMB platforms. Fred discussed how conversational AI will handle common customer queries, such as appointment scheduling or asking about business hours. This tool helps automate tasks that often fall to front-desk staff, enabling employees to focus on higher-value interactions while AI handles the routine.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Benefits of AI in Vagaro<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer Convenience:<\/b><span style=\"font-weight: 400;\"> AI can respond quickly to customer inquiries, offering a high level of service even when staff are unavailable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Operational Efficiency:<\/b><span style=\"font-weight: 400;\"> Businesses can reduce the workload on front-desk staff by automating routine tasks through AI.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seamless Integration:<\/b><span style=\"font-weight: 400;\"> The AI is fully integrated with the Vagaro system, ensuring that conversations are consistent across all customer touchpoints, whether from a website chat or an app.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">The Vagaro Journey of Innovation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Looking back, Fred shares a humorous yet insightful reflection on his early days with Vagaro. After completing the email marketing feature, Fred thought they had finally created the &#8220;last feature everyone wants.&#8221; However, after the feature was released, customers immediately began requesting new tools, proving that innovation never stops.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fred&#8217;s story illustrates the relentless pace of customer demand and the need to evolve constantly. As a result, Vagaro has embraced continuous innovation as part of its DNA. The company has evolved from simply offering scheduling and booking tools to becoming an all-encompassing SMB platform that handles everything from embedded finance to AI-driven customer service.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Lessons Learned from Vagaro&#8217;s Journey<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer Demand is Endless:<\/b><span style=\"font-weight: 400;\"> No matter how complete a product may seem, there is always room for improvement and new features.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Continuous Innovation:<\/b><span style=\"font-weight: 400;\"> The key to long-term success is staying focused on what&#8217;s next, always looking for ways to improve the platform and keep pace with customer needs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Iterative Growth:<\/b><span style=\"font-weight: 400;\"> Fred believes the company must always be forward-looking and excited about what&#8217;s coming rather than resting on past successes.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-676 lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2.png\" alt=\"\u201cThe possibilities of what we can add are limitless. That\u2019s why we hire developers more than anything else. There are always more things we can do.\u201d\nFred Helou,\nFounder and CEO, Vagaro\" width=\"1200\" height=\"1200\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2-300x300.png 300w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2-630x630.png 630w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2-150x150.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/08\/3-2-768x768.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<h2><span style=\"font-weight: 400;\">Scaling with Embedded Finance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Vagaro&#8217;s journey also includes successfully integrating embedded finance solutions, such as <\/span><b>capital advances<\/b><span style=\"font-weight: 400;\"> and <\/span><b>pay-later<\/b><span style=\"font-weight: 400;\"> options. These tools have proven crucial for helping businesses offer more flexible payment options, improving customer satisfaction, and boosting sales.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fred approached embedded finance cautiously. By watching how other companies like Affirm succeeded in this space, Vagaro ensured that when they launched their finance tools, the timing was right, and the products truly benefited their customers. For example, the &#8220;pay later&#8221; feature has benefited businesses offering high-ticket services, such as spas or fitness studios, where customers often prefer to spread payments over time.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Embedded Finance Features:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Capital Advances:<\/b><span style=\"font-weight: 400;\"> Offer businesses quick access to cash based on their credit card transactions, helping them manage cash flow during periods of growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pay Later Options:<\/b><span style=\"font-weight: 400;\"> Allow customers to finance expensive services, increasing sales and customer satisfaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Thoughtful Rollout:<\/b><span style=\"font-weight: 400;\"> Vagaro waits for market validation before introducing new financial tools, ensuring that they meet the needs of their customers while minimizing risk.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">How Vagaro Drives Adoption of New Features<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred discussed how Vagaro encourages customers to adopt new features, highlighting the company&#8217;s focus on <\/span><b>product-led growth<\/b><span style=\"font-weight: 400;\">. By building prompts directly into the software, Vagaro gently guides users toward exploring and adopting new tools to benefit their business. These prompts appear at relevant moments in the workflow, making the experience natural rather than forced.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Vagaro also uses data-driven insights to suggest features that might be particularly useful to specific businesses. For instance, if a salon already uses a few Vagaro features but isn&#8217;t using the website builder, the software may suggest that customers explore it to help grow their business online.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Feature Adoption Tactics<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Product-Led Prompts:<\/b><span style=\"font-weight: 400;\"> Vagaro introduces new features to users within the workflow, ensuring that adoption feels organic and relevant.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data-Driven Recommendations:<\/b><span style=\"font-weight: 400;\"> Vagaro suggests features based on customer data, helping businesses discover tools that fit their needs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Onboarding Upsell:<\/b><span style=\"font-weight: 400;\"> When users set up new services or employees, Vagaro prompts them to explore related features, such as payroll integration.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Helping SMBs Grow with Marketing Tools<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Vagaro doesn&#8217;t stop at business management\u2014the platform also helps SMBs grow through marketing tools like the website builder. Fred explained that many businesses struggle with maintaining an up-to-date website, which is crucial for attracting new customers. Vagaro&#8217;s website builder integrates seamlessly with the rest of the platform, ensuring that a business&#8217;s online presence is always up to date with the latest information, services, and promotions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Vagaro&#8217;s website builder is SEO-friendly, making it easier for businesses to appear in search results. It automatically updates with changes made in the Vagaro system, such as new business hours or pricing. This feature helps SMBs maintain their online presence and grow their customer base by appearing higher in search results.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Marketing Features for SMBs<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>SEO-Friendly Website Builder:<\/b><span style=\"font-weight: 400;\"> Vagaro&#8217;s website builder allows businesses to create and maintain an optimized online presence with minimal effort.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Booking Widgets:<\/b><span style=\"font-weight: 400;\"> Businesses can embed booking widgets on their websites, allowing customers to schedule appointments directly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated Updates:<\/b><span style=\"font-weight: 400;\"> Changes made in the Vagaro system automatically sync with the website, ensuring that all information is always current.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Vagaro&#8217;s Journey and Future<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fred&#8217;s journey from software engineer to founder of Vagaro highlights the importance of staying close to customer needs and continually evolving to meet market demands. Vagaro&#8217;s success lies in its ability, mobile-first approach, and commitment to innovation, particularly in areas like embedded finance and payroll. As Vagaro grows, Fred remains focused on helping service businesses run their operations more efficiently and grow through effective marketing and customer engagement tools.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">By listening to its customers and anticipating their needs, Vagaro has become a leader in SMB platforms, helping service professionals worldwide easily manage and grow their businesses. As the platform continues to evolve with AI-powered communication tools, embedded finance options, and marketing solutions, Vagaro remains focused on helping SMBs run smoothly and grow.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Listen to <\/span><a href=\"https:\/\/www.smbtechinnovators.com\/episodes\/fred-helou\"><span style=\"font-weight: 400;\">Tech innovation in beauty, wellness and fitness with Fred Helou<\/span><\/a><span style=\"font-weight: 400;\">. Learn more about <\/span><a href=\"https:\/\/www.linkedin.com\/company\/vagaro\/\"><span style=\"font-weight: 400;\">Vagaro<\/span><\/a><span style=\"font-weight: 400;\"> and connect with <\/span><a href=\"https:\/\/www.linkedin.com\/in\/fredhelou\/\"><span style=\"font-weight: 400;\">Fred on LinkedIn<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover how a passion for technology turns into a groundbreaking solution that helps businesses thrive. Fred Helou, Founder and CEO&#8230;<\/p>\n","protected":false},"author":11,"featured_media":673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-672","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 v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Embedded Finance for SMB Platforms | Fred Helou of Vagaro - Embedded Blog<\/title>\n<meta name=\"description\" content=\"Discover how Vagaro uses embedded finance for SMB platforms to streamline operations and enhance customer satisfaction in service businesses.\" \/>\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\/embedded-finance-smb-vagaro\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Embedded Finance for SMB Platforms | Fred Helou of Vagaro - 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