Case Study on the Effectiveness of Creative Hippo vs. In-House Agencies

19th Mar, 2019

I understand the struggles and owner needs. I know how many of them think as I am one myself. I’ve worked with many owners as well and learned their perspectives. I pride myself on my project management skills and being able to effectively manage a virtual team. The virtual professionals know how I work and what I expect.

  • -Phillip H.

 

Creative Hippo Information

Creative Hippo is a multi-faceted marketing and design company established in (insert year here) as an alternative to traditional in-house marketing and web development agencies. Under the tutelage of owner Phillip, the company utilizes a virtual staff of professionals consisting of multiple website developers, graphic designers, mobile application creators, and consultants that work remotely on the client’s specific needs. Phillip proposes that by using Creative Hippo in place of traditional in-house agencies, clients will reduce payroll costs annually in addition to competitive costs for services.

 

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Traditional In-House Agencies

Companies looking to improve the design and user interface of their business often outsource these tasks to project management companies and agencies. These companies typically include customer service representatives, website developers, graphic designers, data entry personnel, merchandisers, print and digital marketers, a sales division, and executive assistants. By having consistent staff, these companies look to establish consistency in their products while allowing for interpromotional growth. However, these companies often require extensive pay rates for outsourced and in-house employees, often with the risk of turnover and interpersonal turmoil.

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Payroll Comparison

The following is a list of average salaries for positions found in Costa Mesa, CA:

Customer Service Representative I $39,043
Website Developers $85,301
Graphic Designers $57,198
Data Entry Clerk $35,632
Marketing Assistant I $46,598
Telemarketing Representative I $33,293
Executive Assistant $72,284

Source: Salary.com

 

Using the first figure, the annual salary of a customer service representative in Costa Mesa, CA, it can be shown that Creative Hippo can save clients payroll expenditures:

  • At approximately $39,000, companies with an eight-figure revenue stream hiring between eight to sixteen customer service representatives will spend $312,000-$624,000 in payroll annually, not including medical or benefits.
  • Creative Hippo offers customer service representatives at approximately 37% of the annual salary cost. In addition, by hiring representatives who are able to consolidate other vital roles (ex. data entry, inventory, tracking, etc.) without medical or benefits, overall payroll can be reduced by as much as 60%.

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Services Examination

In addition, Creative Hippo was found to offer services at a demonstrably lower price compared to the industry standard. For example, the average cost of graphic design work nationwide in 2018 was between $100-$850 based on the size of the project. Logos specifically fall between the $500-$900 range.

 

   Source: Thumbtack.com

                                                                                       

 

Comparatively, Creative Hippo offers a package deal for the three most sought after graphic design services: logos, packaging, and insert cards. Logos alone are priced at approximately 50% of the industry price, automatically saving the client more money. In addition, by combining services the customer is able to receive the products at the same time at an overall cheaper price. Otherwise, the

 

Based on the data above, it can be inferred that companies seeking services such as graphic design work can save substantial amounts of money per project and can stay at the lower end of the bell curve.  

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Conclusion

  • Creative Hippo offers equal services with competitive prices compared to traditional web, design, and project consulting agencies.
  • Clients who choose Creative Hippo save money on payroll by approximately 60%.
  • Services such as graphic design work can be completed below the nationwide average with a virtual consolidated staff headed by a hands-on project manager.

 

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