Question
We are in the field of personal healthcare technology. As our customer base grows, we are considering implementing white-label customer support to keep up with the demand but stay low in cost and company structure. However, I have heard that there is significant danger of losing touch with the customer if we put another company between us and the customer. From our start with an MVP to the current line of products, constant customer feedback has been invaluable for our business development. How do we guarantee efficient high-end customer service without losing direct customer feedback and the according metrics?
Answers: 1 public & 0 private
Without knowing specifically what your personal healthcare technology offers customers, i.e., fitness monitoring, healthcare insurance assessments, chronic disease management, etc. It is not possible to provide a meaningful answer to your question. Also, what stage are you at as far as the business- are you trying to expand your customer base, looking to possibly sell, how established is your brand and market?
I ask these questions because you particularly point out "constant customer feedback has been invaluable for our business".
I rarely recommend white label support for startups or developing business relying highly on customer customization and feedback.
Once you commence white label support, you have built a layer between you and your users and you lose control of your user/customer. When the customer or end user belongs to someone else it becomes really hard to make your product better. Based on your comments, this is not advisable at your current level of product development. So your first consideration should be:
Will you get the feedback you need and how will you monitor the quality/quantity of that feedback without direct involvement?
Every white label supplier my customers have dealt with require you to customize your needs to fit into their program. Every partner will have their customizations they want you to make. Do want to limit yourselves at this point?
Is an established company going to put their brand and reputation on the line and market your product?
It’s highly unlikely in my experience. You will get interest from less established companies or companies that have no technology expertise in house or other startups who like you have no customers.
Also, what if your potential buyer competes with one of your white label partners?
Based on the information provided, the only scenario where white labeling makes sense is to take advantage of markets that you will never enter directly. If you will never enter the Chinese market as an example, then having a partner white label your product there may be ok. You will still have issues to deal with in terms of distraction, custom requests and exit complexities.
Please understand, I understand the rise in popularit and even its necessity of white-labeling and in some cases may even become an alternative to traditional affiliate marketing for brand conscious companies who want to work with a select group of trusted partner sites or retain complete control of their network while operating across multiple sites. However, without detailed information, I can only answer generically.
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