PAYC's Billion Dollar Ambitions

Fantastic article by CMFGoulberg with lots of good stuff about how PAYC is changing its approach to opening up new sales offices, reducing its client churn, and even has new and higher goals. Here’s an excerpt about what PAYC CEO Chad Richison sees as the company’s moat:

Paycom targets what it calls the mid-market (companies with between 50 and 2,000 employees). The company’s core offering is an HCM solution that consolidates payroll and HR functions in a single cloud-based system, eliminating the inefficiencies of dealing with multiple vendors or doing tasks in-house. Paycom’s software is also designed for mobile access so employees can complete these tasks from virtually anywhere.

Commenting on the competitive environment, Richison noted that the big, established providers like ADP aren’t asleep at the wheel – they’re also trying to move customers to a cloud-based offering. In fact, Richison said every customer that has come to Paycom from ADP was already on a cloud-based platform. This implies that when it comes to switching from one of Paycom’s larger competitors, moving to the cloud isn’t much of a motivator. Interestingly, price isn’t one of the big factors either, as Paycom says it’s not the lowest-cost provider and is in-line with ADP. Richison says that Paycom’s sales pitch is more ROI-driven, as its software generally replaces two or three other vendor solutions. Richison emphasized that solving customers’ integration headaches – while saving them time and money through increased efficiency – continues to be the biggest differentiator for Paycom.

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