What is a Fractional CMO and When Should You Hire One?
When scaling your business, you’ll need someone to help you manage marketing efforts and build growth. However, finding a perfect fit who can offer much-needed leadership and marketing expertise can be challenging.
You need a CMO (or Chief Marketing Officer) to manage diverse marketing endeavors for you. According to one survey, 52% of marketers believe CMOs drive digital customer journeys today.
But a full-time CMO needs a salary most new startups and mid-sized companies can’t afford. Enters a fractional CMO!
Let’s explore what a fractional CMO is and why you need one.
What Is A Fractional-CMO?
Fractional CMOs are contract-based chief marketing officers retained part-time to offer executive leadership for business growth. They can help you with sales development, customer acquisition, and business expansion.
It’s a perfect solution for companies requiring strategic, experienced marketing guidance but doesn’t have funds or aren’t ready to hire full-time CMOs.
Here are a few responsibilities that fractional CMOs perform with a limited timeframe and pay scale:
· Define marketing strategies and lead your marketing team
· Translate your marketing efforts into desired results
· Enhance digital presence and business mindset
· Drive sales growth
· Manage and mentor your marketing team
· Manage branding and content marketing
· Recruit new staff
· Strategize social and email campigns
· Report on marketing outcomes and more
What Are The Benefits Of A Fractional-CMO Vs. Full-Time Hire?
According to one report, businesses with CMOs performed 15% better than those without. But which offers better benefits: a full-time CMO or a fractional CMO?
Let’s find out:
Fractional CMO
Listed below are a few benefits why you should hire a fractional CMO:
· Flexibility: You can stop and start fractional CMOs contracts whenever you want to meet the company’s various needs
· Seasoned And Leadership: Fractional-CMO is a well-versed individual who can organize teams and devise bulletproof strategies drawing data-backed consumer insights
· Fewer Recruiting Risks: Believe it or not, hiring fractional CMOs are better (and less risky) than hiring full-time CMOs. Not only recruitment gets easier and faster, but you can also replace them hassle-free when they perform poorly
· Budget Savings: Unlike a traditional full-time CMO (an expensive proposition), a fractional CMO won’t cost you an arm and a leg. They have lower salaries and won’t enjoy the same benefits as permanent employees. With a fractional chief marketing officer, companies can free up valuable cash flow and direct it to various campaigns to ensure business growth
· Outside Perspective: Since fractional CMOs work hourly and are often considered ‘outsiders,’ they can identify areas that require improvement. They provide data-driven insights and fresh ideas
· Long-Term Results, Short-Term Commitment: When you hire fractional CMOs, you sign up for three months of CMO service (minimum). The average CMO contract lasts approximately nine months; however, you only commit to a 90 days sprint. This means you can mitigate your company’s financial risks and get valuable purpose-driven marketing insights
· Efficiency and scalability: Fractional CMOs have a limited timespan to produce outcomes. They compromise their credibility and reputation if they fail to deliver on their promises. Fractional CMOs can help you develop winning strategies, test them and iterate them to provide desired results. They have a growth mindset and can help you scale your business exponentially
Full-Time CMO
Like fractional CMOs, full-time chief marketing officers also offer a wide variety of benefits to a business. For example, they look after your marketing efforts and are responsible for both their failure and success.
A full-time CMO can help streamline marketing efforts and ensure all components align with your company goals and analytics.
This continuous high-level oversight enables other executive leaders to concentrate on their specific areas and business operations. Believe it or not, full-time CMOs can help strategically develop sustainable business growth.
The major difference between a fractional CMO and a full-time one is money. Fractional CMOs work a few hours per week or month, taking less pay than full-time CMOs.
7 Signs You Might Need An Outsourced CMO
Some companies believe hiring fractional CMOs is unnecessary for development and business growth. Here’s a list of seven signs that indicate you may need an outsourced CMO:
1.Your Business Lacks Marketing Leadership
When your business expands, you’ll need reliable marketing leadership. 66% of marketers consider thought leadership a priority for their companies.
This is important because poor leadership makes marketing efforts scattered, disorganized, and lacking cohesive branding.
A fractional CMO brings experience and best practices utilized by leading companies to create your marketing strategies. They guide your team extensively: manage duties, focus on their activities, hire new staff, and more.
Leverage these benefits depending on your requirements. Since they’re part-time (work hourly), they provide value for money.
2. Your Business Needs High-Level Strategic Guidance
Startups and smaller businesses usually lack a cohesive vision for the objectives their marketing should achieve. If that’s the case, fractional CMOs can help – they can level up marketing efforts and bring a major difference in how you achieve your marketing goals.
They have the necessary skills in organization, leading, and streamlining various marketing strategies for businesses of all sizes and shapes.
Good marketing management involves building a strategy and managing the marketing budget and employees to make sure operations run smoothly and efficiently.
3. Your Business Isn’t Ready For A Full-Time CMO
Small to medium-sized businesses and new startups require effective guidance and thought leadership to grow. However, there might not be enough work or budget to justify hiring full-time CMOs.
Also, recruiting full-time CMOs is like tying the knot. It’s a rather heavy commitment with long recruitment phases, hefty salaries, and equity.
But fractional CMOs can provide the same advantages and value for a fraction of the price. They can effortlessly provide value depending on your company’s capabilities and budget.
4. Your Business Doesn’t Have Full-Time Work And Has Budget Constraints
Budget uncertainties are normal when a company expands or is a new startup. When budgets are tight and the business expansion grows steadily, there’s no option but to tighten your business belt and spending.
A fractional CMO can help companies derive maximum from marketing efforts when they have tight budgets or uncertain financial futures. They perform a similar job as full-time CMOs but take a fraction of both pay and time.
Remember, the goal is to spend money efficiently on various business aspects. With a professional fractional-CMO, you can easily create marketing plans, track marketing work, and manage teams effectively. It helps attract more business and increase ROIs (return-on-investments).
5. Your Business Lacks Data-Driven Intelligence To Decipher Insights
Most companies lack effective knowledge of marketing to make proper executive decisions, leading to poor business efficiency and reduced growth.
Fractional CMOs provide the necessary insights you require to level up marketing efforts and strategies. Since they’re outsiders and not confined to your business, they bring expertise and best practices accumulated from various clients.
In addition to that, they can help you muster data from your KPIs (key performance indicators) to track and drive required marketing results.
6. Your Message Isn’t Resonating In The Marketplace
If what you say doesn’t resonate with your targeted market or is outdated or inaccurate, it’s time to hire a fractional CMO. They can help B2B companies with strategic messaging and positioning, helping them stand out from competitors.
7. Your Brands Growth Is Starting To Stagnate
Low productivity and growth can affect a business’s position drastically. If your competitors grow while your business remains stagnant, you may fall behind.
With fractional CMOs, you can redirect your business focus hassle-free, save it from the slump and ensure it stays updated with the latest technologies and trends within the niche and industry.
Your business growth depends on the person leading marketing efforts and strategies. To ensure smooth business operations and effective marketing, you need reliable guidance and greater organizational and financial flexibility.
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