GymPass RFP: HR Tech + Marketplaces

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HR Tech: Case Studies

Justworks built a base of satisfied customers by offering 24/7 support and user-requested updates to their product. ADP focused on establishing their brand and staying relevant through focused PR efforts.

Case Study #1: Justworks

Building an Innovative Product

Excelling in Customer Satisfaction

  • The CEO, Isaac Oates, attributes his company's success to the pursuit of client satisfaction. In general, HR tech companies lag behind other industries in customer satisfaction rates. The average net promoter score (metric for measuring overall customer loyalty) for HR companies is just 8, so Justworks's score of 60+ sets them apart.
  • According to Oates, the company focuses on establishing positive relationships with customers during the onboarding phase. They believe that early relationship-building has a huge impact on customer retention.

Case Study #2: ADP

  • Since its founding in 1949, ADP (Automatic Data Processing Inc.) has become the leading payroll service company. At least 66% of ADP's revenue still comes from payroll processing services. However, they also provide a variety of HR tech services to small, mid-sized, and large companies.
  • ADP's net income grew 41% in the 2019 fiscal year. They have an average growth rate of 6.7% each year and are expected to reach the $15 billion in total revenue by 2020. They have been a Fortune 500 company for 25 years.
  • ADP grew by establishing itself as the most well-known payroll service in America. They have maintained their brand's integrity through focused PR efforts.

Establishing a Trusted Brand

Incorporating New Technology and Updating Their Brand

  • Unlike Justworks, ADP does not aspire to be the first to adopt new technology, as it might hurt their reputation as a trusted brand. However, they do actively incorporate proven technologies by buying successful companies or developing new products.
  • In 2019, ADP and Havas Media Group created the "Breaking Barriers" campaign. They set up booths where guests used sledgehammers to destroy objects representing "work-place barriers" (like glass mirrors and fax machines). ADP's marketing team used memorable media from that campaign to announce that ADP would become a more tech-driven company.

Research Strategy

After reviewing HR tech industry analysis available from the Society for Human Resource Management (SHRM), a report on 2020 HR Tech predictions, and other reports from leading HR tech groups (like HR Technologist and Human Resources Today), we were unable to find case studies to fully answer the research question. Thus, we built case studies by compiling research from a range of sources, including the industry analysis sources mentioned above. We began by identifying the fastest growing HR tech companies. From this list, we zeroed in on Justworks and ADP, two companies that offer insight into a diverse set of strategies. To complete the case studies, we compiled data from PR reports, business news outlets, and interviews with company leaders.
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Best Practices: Marketplaces

One of the best practices for marketing employed by three-sided marketplaces is risk mitigation, which is emphasized by Uber Eats through its risk analysis team. Another practice is growth through acquisition, which is done by Compass' strategy to acquire the best talents, leading to the expansion of its customer base. Also, unaffiliated listings have been employed by DoorDash, expanding the services it offers and attracting clients.

Risk Mitigation

  • Uber Eats is a three-sided marketplace connecting eaters, restaurant-partners, and delivery-partners. The company has a risk analysis team comprising engineers, data scientists, and strategists with the responsibility to mitigate risk on eight payment platforms by means of research, technology, and policy.

Growth Through Acquisition

Unaffiliated Listings

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