Measuring lifetime value (LTV) — the average revenue a customer generates during their entire relationship with a company — might be a challenge for your business, especially if you have other marketing metrics you need to track. It involves data collection, complex calculations, and other tasks that eat into your time and budget. That's why more marketing companies are working with white label partners that do all the hard work for them. Learn the answer to the question, "What is a white label partner?" and how to increase LTV!
Increasing Lifetime Value (LTV)
LTV is one of the most important marketing metrics because it lets you increase the value of every customer relationship. You can identify your most lucrative customers and assess the long-term financial viability of your business. When you increase lifetime value, you boost profitability, generate more revenue, and create new opportunities for your company. Customers with a high LTV will purchase more products and services from your company, which will grow your organization. You can expand your business's services further with a white label partnership.
What is a white label partner?
A white label partnership is a type of business setup where one company provides a product or service for another company, which then sells or markets the product or service as its own. For example, company A makes shoes for company B. Then, company B sells the shoes to its customers under its own branding. Customers are completely unaware that company A has made the shoes. White label partnerships happen in all kinds of industries, from retail to professional services. In marketing, white label partnerships are becoming increasingly common as agencies don't have the resources to provide customers with multiple services. So an agency specializing in SEO, for example, can outsource LTV to a third party and still provide this service to its customers. The right white label LTV partner will help you fend off competitors and ensure your clients aren’t filling the gaps in your services elsewhere. Now you know the answer to the question, "What is a white label partner?!"
Should I use a white label partner? Considerations
You should consider whether entering into a white label partnership is right for your business, especially if you are scaling your service offerings. You'll need an existing customer base, recurring revenue, and money to invest in white labeling and a clear direction of where you want your business to go in the future. If you plan on expanding services but don't have the resources to offer features like LTV, a white label partnership is a good idea. The biggest benefit of white labeling is that you don't need to create a new service offering like LTV from scratch. Your partner will have knowledge and expertise in that service, so you don't have to use any of your resources or hire additional staff to make things happen. Working with a partner that understands a feature like LTV can also result in more successful marketing outcomes. Your partner will measure and increase LTV while you focus on the marketing services you are good at.
How do I choose a white label partner?
Learning how to choose a white label partner can be challenging, The most important thing is to ensure you and your potential partner are on the same page and have the same goals. Many white label partnerships break down because of a lack of communication. That's why it's imperative to tell your partner what you expect from your relationship. Another issue that happens during white labeling is a misunderstanding of roles and responsibilities — and who will be expected to take care of different marketing tasks. For example, will your partner handle everything to do with LTV management? Or will you still play a role in the process? Finally, research your potential partner's expertise to ensure they have knowledge of marketing for your specific industry, market, and audience. Say you want to increase LTV for millennial customers. Will your partner be able to help you with this? Or have they only increased LTV for other demographics?
What is a white label partner? Final word
White label partnerships can benefit your business in multiple ways. You can free up resources and work with a partner that understands LTV and how to increase it, allowing your company to scale its service offerings. Choosing a white label partner involves making sure you and a third-party service provider are on the same page and share the same goals. Once you have established a relationship, you can improve marketing outcomes. Want to know how to increase customer lifetime value and generate more value from customers? Symphonic's white label services help you scale your business.
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