White labeling is manufacturing or creating a product to be sold by another company under its own branding. It is a typical method used by software companies to add functionality while maintaining their application’s look and feel.
Integrating third party software offers benefits to software providers. It is a fast, cost-effective way to enhance an application, typically more than developing it in house. Third party solutions tend to be more robust than homegrown ones, since they are written by developers with a deep knowledge of the product sphere and are tested across a larger user base.
Using a third party solution that is white labeled offers further benefits. Because it inherits the look and feel of the existing application, white labeling removes a layer of complexity that comes with a branded third party solution. An example of this would be the kind of disjointed experience an end user would face when forced to navigate to a different portal to access analytics for their application. In a white labeled product, analytics would be seamlessly integrated with the interface users know and understand. A better user experience ultimately improves software adoption rates. Similarly, white labeling is a way for software vendors to keep their brand in front of users, instead of displaying a third party’s watermark or logo inside their product. This too is an important way to retain customers in today’s competitive software market.