Introduction: The Opportunity that FinFlx Tackles
The prevailing sentiment in the UAE suggests that the gratuity process is relatively smooth. Timely payments to departing employees are thought to be the norm, and concerns about gratuity liabilities seemed remote. However, the arrival of COVID-19 challenged Amr Yussif’s perception of this.
Suddenly, businesses faced the daunting task of letting go of significant portions of their workforce due to the pandemic’s impact. It became evident that proper gratuity management and the safeguarding of employees’ end-of-service benefits was more critical than ever before. Enter FinFlx.
Born from the idea of filling a gap in the UAE’s gratuity process, FinFlx has evolved into a platform offering the UAE’s equivalent of 401(k) plans, financial literacy content, and financial aid benefits to company employees. Yes, that’s quite a comprehensive offering!
At present, central to FinFlx’s success is a strategic approach rooted in B2B2C principles, placing end-consumer needs at the forefront while appealing to B2B clients without direct consumer interaction. However, FinFlx didn’t offer this full suite of solutions from the get-go. Rather, first-time founder Amr built FinFlx’s value proposition as the business evolved in its early days.
In this blog post, we’ll take you through FinFlx’s journey from how it started to where it is today, with a spotlight on building the product and value proposition for both institutional customers and end-users in mind. From there, we share lessons learned from Amr so that founders can adopt strategies when building out their B2B and B2B2C go-to-market strategies.
Crafting a B2B2C strategy — What to Look Out for
FinFlx’s initial core value proposition revolved around automating HR processes related to gratuity. The message was straightforward: the platform streamlined operations, ensuring seamless employee recordkeeping starting from gratuity forecasting all the way up until departures and terminations, thereby avoiding disruptions and legal complications.
However, Amr found that the conversations he was having with decision makers at prospective institutional clients were shifting from initial endorsement to risk management — analyzing HR-provided turnover numbers to recommend coverage percentages for liability mitigation.
“The more you talk to your clients, the better you understand the challenges that they are facing which helps ensure that your product is designed to address their key problems and jobs to be done. You need to see their day-to-day patterns and what tools they are currently using so you can make sure your solution offers as seamless a customer journey as possible.”
And so, Amr realized there was an opportunity to simplify FinFlx’s process by translating insights from the HR team into a risk management discussion directly on their platform, fostering seamless interactions, scheme creation, modification requests, and approvals, thereby eliminating the need for extensive email exchanges or complex financial models that are hard to maintain accurately. In addition, Amr realized the platform had the potential to become a comprehensive flexible workplace savings plan, promoting financial well-being within the workplace.
In parallel, Amr reflected on the following key insights that became more and more apparent to him as he took FinFlx to market:
- Help the buyer (employer) to help the users (employees): By helping employers develop a sure financial footing for their gratuity schemes, employers would then be in a better position to support their own employees’ need for liquidity. In addition, employees naturally trust their employer so they are receptive to financial wellbeing schemes that the employer endorses.
- Financial maturity varies: FinFlx recognized that employers had varying states of financial sophistication and that FinFlx would need to adjust its sales and marketing approach along with the onboarding journey accordingly.
- Craft a compelling win-win for all: FinFlx made its financial well-being services available to clients’ employees at no additional cost, benefiting both parties. Employees gained access to valuable resources, while companies fostered employee engagement and well-being.
“Employees tend to adopt solutions that are endorsed by employers and practiced by their colleagues and co-workers. Employers have an incredible opportunity to ensure the financial wellbeing of their staff and there is increasing recognition that financial wellbeing is critical for mental wellbeing”
Essential Tactics for B2B2C Success
For founders of B2B2C businesses looking to really drive sales by marketing with the end-users in mind, as opposed to the direct buyers (i.e. the institutional buyers), Amr suggests the following aspects be kept in mind, based on his own experience:
- Build for Scale: Beyond a single B2B connection sits many other B2B2C end-users. You need to ensure your product is built for scale from the get-go. You need to also ensure the experience is optimized primarily for the end-user rather than the purchaser.
- Personalize sales: Rather than spending extensively on platforms like Google and Facebook ads, focus on direct and personalized engagement methods, such as webinars and face-to-face interactions. FinFlx also leverages platforms like LinkedIn and attends industry-related events and gatherings to understand customer needs firsthand.
- Remember B2B2C Client stickiness: Despite their intricate sales cycles, B2B2C clients often foster longer-lasting relationships and offer greater potential for consistent revenue streams. The B2B2C model’s stickiness, especially concerning gratuity, leads to quicker payback periods. Go the extra mile to secure your clients as the retention is usually strong.
- Find channel partners: Look at who you can collaborate with to offer a more comprehensive experience and pool your resources to deliver more value and execute your go-to-market strategy at a larger scale.
- Map Customer Personas. In FinFlx’s case, the Human Resources department emerges as their “target market,” though the final approval typically rests with the finance officer, responsible for allocating company funds to the gratuity scheme. Map out the sales process and all the key stakeholders.
“Mapping your sales cycle is an ongoing process that varies significantly based on market segments and customer size and sometimes even industries. Getting the timing right is critical”
Conclusion
FinFlx’s B2B2C journey exemplifies the power of strategic thinking, a commitment to customer well-being, and the value of maintaining strong B2B relationships. By focusing on end-consumer needs while catering to B2B clients, FinFlx has not only navigated challenging times but has also set a precedent for businesses looking to thrive in the ever-evolving landscape of the UAE’s gratuity ecosystem.
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