White labeling is when a product or service that is produced by one company is rebranded by another company for its own use or distribution. White label branding is often used for mass-produced generic goods including electronics, food products, software packages, and web applications. The idea behind it is that companies use white label products to enhance their successful brand, being able to offer a product/service without having to invest in creating the technology and infrastructure itself. Attaching a familiar brand to an unfamiliar product is a great way to gain the trust of loyal customers of that brand.
Businesses in almost every industry have had much success using a white label strategy, but what about credit unions? Are there generic programs available that credit unions can adopt and brand that will allow them to better serve their members? In short: Yes. Credit unions can utilize this strategy too.
A prime example of an ingenious white label product is the one-stop auto shopping and financing platform, GrooveCar Direct. “The GrooveCar Direct platform is not marketed to credit union members as GrooveCar,” explains Eric Budzinski, AVP of Marketing for GrooveCar. “We stress that the credit union should ‘own’ the program, presenting the program to their members as a product/service of the credit union. This helps to strengthen the relationship between the member and credit union, by reinforcing the concept that the member is dealing directly with the credit union and not a third party vendor.”
When properly branded to a credit union’s identity and voice, programs like GrooveCar Direct have the potential to generate great referral leads. Therefore, it is extremely important that a credit union makes sure that their members are actually using the credit union’s name when telling others about their experience. Otherwise, those referrals may try to purchase from or deal directly with the platform provider, which often times isn’t even an option. Accordingly, the credit union wouldn’t capture the sale and the customer wouldn’t get what they need.
White labeling opens up a world of product options for your credit union. It allows a company to stand on the shoulders of talented vendors while providing their clients with excellent products; all under the name and voice of their own brand. Every time a client uses a company’s branded white label product and sees that familiar name attached, they will associate it with convenience and quality and their loyalty to the brand will increase