Reputational risks are omnipresent in business. From negative publicity to social media backlash, no matter how much effort and dedication you pour into your business marketing, there’s always the possibility of one negative review overshadowing all your glowing reviews and causing long-lasting repercussions.
While you can’t eliminate these risks entirely, you can mitigate them through proactive brand reputation management.
Are you at a point where you need more help managing your business reputation?
The pivotal decision is whether to invest in an in-house online review management team or partner with an online reputation management (ORM) agency. Both options have their merits, and understanding the nuances can help you make an informed choice that aligns with your business objectives and financial capacity.
Let’s delve into the key considerations when choosing between hiring an in-house team or outsourcing an online reputation management agency.
• What Is In-House Brand Reputation Management?
• In-House vs. Outsourcing: Pros and Cons
• Cost Considerations
• Expertise and Resources
• Flexibility and Scalability
• Time and Efficiency
• Risk Management
• Should You Hire an In-House or an ORM Company?
What Is In-House Brand Reputation Management?
In-house brand reputation management refers to managing your own ORM campaigns using internal resources and personnel. It involves establishing your own online review management department within the company, which will be responsible for developing and executing reputation monitoring solutions, online review management campaigns and initiatives.
Your in-house team works directly for your company and is deeply integrated into your operations, culture and goals.
However, although efficient, many businesses prefer outsourcing a reputation management services provider. An external online reputation management agency takes full responsibility for all aspects of your ORM campaign, including strategy development, implementation and ongoing monitoring.
Many businesses rely on online reputation consultants because they either lack the internal expertise or resources to handle ORM projects effectively or believe outsourcing reputation monitoring solutions yields better results. Some also opt for a hybrid approach, combining their in-house expertise with ORM agency capabilities for special projects or crises.
In-house vs. outsourcing – which is best for your company? Let’s discuss.
In-House vs. Outsourcing: Pros and Cons
Each option comes with its own set of pros and cons. Deciding which route to take requires careful consideration.
| In-House | ✓ Predictable expenditures ✓ Greater control ✓ Talent development ✓ Knowledge of your business ✓ Aligned cultural and company fit | ✖ Difficulty finding top talent ✖ Limited skills and experience ✖ Time-consuming ✖ Higher costs ✖ Employee turnover ✖ Employee burnout |
| Outsourcing | ✓ Quick access to high-level expertise and skilled labor ✓ Flexibility ✓ Faster turnaround time ✓ Avoids employee burnout ✓ Focus on core operations ✓ Campaign scalability | ✖ Fewer employee growth opportunities ✖ Confidentiality concerns ✖ Lack of control |
Let’s explore this in more detail.
Cost Considerations
Financial implications are among the most critical considerations when deciding between hiring an in-house team and outsourcing an online review management services provider. While hiring a reputation management company may seem more expensive upfront, it can save you money in the long run.
IN-HOUSE
Building an in-house ORM team requires significant upfront costs for recruitment, onboarding and infrastructure setup. Additionally, you’ll need to factor in ongoing expenses like salaries, benefits, training and software subscriptions, which can quickly add up, especially for larger teams.
OUTSOURCING
On the flip side, online reputation consultants often have access to various tools and provide a wide range of reputation management services, which can translate into cost savings for their clients.
“Hiring an agency allows a company to avoid paying a salary or benefits, lowering the overall overhead costs,” said Tim Clarke, Thrive Local’s Senior Reputation Manager.
“It also gives the company more flexibility because hiring staff will have high expenses for months or years. Working with an agency can be short term and just a financial commitment for a fixed period.“
What’s more, you’ll avoid the ongoing expenses of maintaining an in-house team, such as training and software licenses.
Online reputation management companies also offer tier-based pricing models that allow you to select a package that best fits your needs and budget. These packages typically range from basic reputation monitoring solutions to comprehensive reputation management plans that include proactive strategies for building and maintaining a positive online presence.
Additionally, many companies provide customized ORM solutions to address specific reputation issues or goals. This flexible approach makes online reputation management accessible to a broader range of businesses, from small stores to large corporations, each with its unique challenges and objectives.
Expertise and Resources
Do you have the time, financial capacity, resources and capability to handle ORM campaigns in-house? Your answer dictates whether hiring in-house or outsourcing is the best solution for your business.
IN-HOUSE
In-house teams offer the advantage of having a deep understanding of your brand, mission, values and target audience. They can align their reputation management efforts more closely with your business objectives and practices. Moreover, in-house teams have direct access to internal stakeholders and decision-makers, facilitating quick decision-making and implementation of ORM strategies.
However, “hiring a new person requires burning time and money on the onboarding and training period,” Clarke said.
“Most staff cannot be fully comfortable and productive in the job for 3-6 months at a minimum. Sometimes, companies make bad hires and have to start again, and the incompetent staff can make the reputation management issues worse in the meantime. Also, hiring in-house staff is more expensive and risky than a short-term project with a company.“
OUTSOURCING
On the other hand, online reputation consultants boast access to a broader range of resources and tools than a single company can afford or maintain.
These agencies employ teams of ORM specialists who are well-versed in the latest reputation management strategies, tools and best practices. They bring a wealth of experience from working with various clients across different industries, offering fresh perspectives and innovative tactics.
Flexibility and Scalability
Flexibility and scalability are crucial, especially for businesses experiencing growth, expanding to multiple locations or operating in dynamic environments.
IN-HOUSE
In-house teams may offer greater flexibility in terms of customization and immediate responsiveness to internal changes or emerging trends. They can adapt quickly to shifting priorities or crises without requiring lengthy approval processes.
However, scalability can be a challenge for in-house teams, particularly during periods of rapid growth or unforeseen reputation crises. Hiring and training new staff to meet increased demands can take time and effort, potentially impacting the quality of ORM efforts.
OUTSOURCING
Unlike in-house teams, online review management services are inherently scalable. Providers can allocate resources according to client needs and quickly scale their brand reputation efforts up or down. Additionally, ORM agencies have access to advanced technologies and analytics tools, enabling them to monitor and analyze online sentiment at scale.
Consider the case of an emergency services provider in Baytown, TX. Before partnering with a reputation management firm, the emergency center only had five reviews. The center needed to scale its ORM efforts to establish a positive brand image and drive more patients to its facility.
Instead of hiring an in-house team, the center partnered with a reputation management services provider to streamline its review generation efforts and drive immediate results.
The ORM agency implemented strategic, fully automated email and SMS review request campaigns to reach patients at an optimal time. This resulted in 238 new positive reviews with an average 4.8-star rating.
Time and Efficiency
Some businesses prefer hiring in-house teams for quicker collaboration. But is it really a wise decision?
IN-HOUSE
One key advantage of hiring in-house teams is direct access to internal stakeholders. This expedites the approval process, minimizing delays in addressing reputation threats.
However, managing ORM in-house can also be time-consuming, especially for businesses with limited bandwidth or competing priorities. In-house teams may struggle to keep pace with the constantly evolving digital landscape and the ever-increasing volume of online conversations. This can lead to delays in monitoring, analyzing and responding to online feedback, potentially exacerbating reputation issues.
OUTSOURCING
Reputation management agencies have established workflows and protocols, enabling them to identify and address potential reputation crises quickly. Online review management services providers also leverage advanced reputation management software to monitor online reviews in real-time, identify threats and execute tailored responses promptly.
Furthermore, their sole focus on reputation management ensures resources are allocated efficiently.
Risk Management
Effective risk management is essential for safeguarding your brand’s reputation in an increasingly volatile digital landscape.
IN-HOUSE
In-house teams may have a deeper understanding of your brand’s values and risk tolerance, enabling them to proactively anticipate and mitigate reputation threats. They can develop robust crisis communication plans and internal protocols for handling online crises, minimizing potential damage to your brand reputation.
However, managing reputation risks internally can be challenging, particularly for businesses lacking experience or resources in crisis management.
OUTSOURCING
Conversely, online reputation management firms have robust confidentiality agreements and protocols in place to protect their client’s intellectual property and sensitive information.
Additionally, ORM agencies can provide an objective, third-party perspective, which can be invaluable during high-pressure situations where emotions may cloud judgment.
Should You Hire an In-House or an ORM Company?
The decision to hire in-house or partner with an online reputation management agency depends on your specific needs, budget and long-term goals. For businesses seeking a comprehensive, cost-effective and flexible solution, partnering with a reputable brand reputation management agency like Thrive Local can be a strategic choice.
We are a fully managed service with an account manager. We do all the setup and all the support work behind the scenes so our clients don’t need to learn a new technology or burn time learning a difficult software tool.
Additionally, we automate our review requests when possible to make the process of generating reviews quick and painless. We also offer other tailored reputation management services, including review monitoring, reporting, review response and review data analysis.
If you’re ready to take control of your online reputation and leverage the expertise of industry professionals, reach out to us today. We’re more than happy to discuss how our team of experts can help elevate your digital presence and safeguard your brand’s reputation.
