The end of app-hopping: How embedded services are redefining the customer experience

2026-05-13 · Source: Sifted · Field: Business & Management — Operations & Process Management, Project & Product Management, E-commerce & Digital Commerce · Depth: Novice, short

Summary

A Sifted Talks panel, in partnership with Sage, explored how embedded services are redefining customer experience for small and medium-sized businesses (SMBs) by consolidating fragmented systems. The discussion, featuring experts from Pleo, Nory AI, Sage, and Box, highlighted the significant time and resource drain caused by SMBs using an average of 59 different applications and up to five bank accounts. The panelists emphasized the need for knowledge-specific systems that integrate essential tools like payroll, invoicing, and HR directly into main platforms, rather than redirecting users to third-party sites. This approach aims to boost user retention and growth by creating seamless, "invisible" experiences, particularly crucial for handling sensitive data and complying with regulations like GDPR across varying European laws.

Key takeaway

For product managers developing solutions for SMBs, prioritize integrating essential services directly into your core platform to eliminate "app-hopping." Your customers expect seamless, invisible functionality, especially for finance or HR. Focus on domain-specific accuracy and collaborate with established partners to build compliant, robust solutions rather than attempting to develop complex systems internally, which can lead to user frustration and compliance risks.

Key insights

Embedded services consolidate fragmented systems into seamless, domain-specific platforms, enhancing user retention and efficiency for SMBs.

Principles

• Domain accuracy is crucial for embedded services.
• Collaboration beats building complex systems from scratch.
• Embedded services must be "invisible" to the end-user.

Method

Implement a pilot approach to test embedded solutions with specific customer segments, focusing on their needs rather than just platform integration. Collaborate with domain experts to ensure compliance and specialized functionality.

In practice

• Integrate payment processing directly into your platform.
• Partner with specialists for payroll or content management.
• Design workflows that hide third-party service providers.

Topics

• Embedded Services
• Customer Experience
• Small Business Technology
• Fragmented Systems
• Domain Specificity

Best for: Entrepreneur, Product Manager, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.