What is a Fractional CMO?
A fractional CMO (Chief Marketing Officer), also referred to as an outsourced CMO, is a marketing executive brought in on a temporary consulting basis to implement strategic marketing programs, guide personnel, and help companies achieve long-term growth. The fractional element refers to the interim basis on which your company chooses to utilize this person’s expertise. A seasoned CMO can cost over $90k, not including benefits. Hiring a fractional CMO provides your business the same expert knowledge without the weight of executive-level costs.
You have the freedom and flexibility to create your own timeframe, depending on your company’s needs. You can work with your fractional CMO for 10, 15, 20 hours, or more per week and decide if you want them on-site or off-site, full-time or part-time. Typically, these directors are brought in for six months or more to establish a relationship and guarantee a strong level of commitment while ensuring your new marketing strategies will have time to gain momentum.
What is the difference between a marketing consultant and a fractional CMO?
Marketing consultants and agencies typically work independently from companies. They use their industry knowledge to assess your current programs, develop marketing strategies for your team, and finally, send their recommendations to a key source within the company. These partnerships remain external and relatively hands-off while still delivering data-driven results.
Conversely, fractional CMOs hold an official leadership role within your company. They provide a plan for overall growth, integrate new marketing strategies developed with your team, and are held responsible for monitoring budgets, and increasing ROI. Because they are typically working with your company for a longer period of time, they have a substantial investment in your overall success. Evaluating your business from the inside gives them the advantage to spot the problems that are slowing you down.
Businesses are not one-size-fits-all and both of these options are viable depending on your specific needs.
Six Skills To Look For In Your Fractional CMO:
Companies hire fractional CMO’s to do the most valuable part of being a CMO: strategizing and driving key initiatives without getting stuck doing the day-day “fire drills”. While it may be impossible to find someone who is good at everything, below are a few skills they must possess.
1) Leadership Ability
An outsourced CMO fills in any gaps in leadership you might have. They step in and take charge to strengthen your weaker areas, whether it’s your marketing tactics, team alignment, brand recognition, or sales force that needs the extra help.
A strong leader can diagnose your problems and give clear direction to your team. They know when it is time to enforce change and when the campaign you’re working on needs more attention. They communicate regularly with executives and inspire morale and confidence in the company’s employees. In short, the leadership ability of just one person can positively impact an entire organization.
2) Team Building and Mentorship Experience
You want a marketer with experience creating and leading programs and teams on a variety of different budgets. They understand the hiring process and they have developed methods to yield the best results. They’ve built and managed strong teams, mentoring employees so when it is their time to leave, everyone has a firm understanding of their role in the organization.
3) Fits Your Company Culture
Compatibility is the most important quality to look for in a marketing leader. While it is necessary that this person has industry specific-knowledge, it’s even more vital that they align with your company’s values and vision. A skilled leader who also understands your company will work well with your team and know how to create a customized strategy that adheres to your long-term goals.
4) Understanding of Analytical Data and The Key Metrics That Impact Sales
Strategic plans require a firm understanding of key sales metrics to lower costs, track conversion rates, and improve your growth. Your marketing plan directly correlates with your sales funnel, and an experienced interim CMO will know how to leverage the important data in order to drive business.
5) Multi-layered Skill Set
An outsourced marketer must be able to formulate a strategy while also being hands-on in the daily execution and direction. Your team members require support along with driven initiative, so you must identify someone who can do both tasks simultaneously.
6) A Proven Methodology and Toolset
The work they’ve done in the past has yielded results and they have the metrics to prove it. They’ve acquired tools and methods along the way and these will be passed down to your company.
Six Benefits of a Fractional CMO
This seems like a no-brainer benefit. Your interim leader is a marketing expert with experience driving a variety of initiatives, team building, and training, setting clear goals, and achieving results. This isn’t their first rodeo.
2) Cost Effective
A fractional CMO provides extensive value for a far lower price than paying an in-house team or hiring someone full-time, which can cost you as much as $300,000 or more. In addition to reducing costs significantly, you can pour these savings into new marketing initiatives developed with the aid of your interim leader.
3) An objective, outsider’s perspective
The saying, “you can’t see the forest for the trees,” has relevance in the business world as well. It is often difficult to see what is right in front of you, especially when your own bias is involved. Your business may need honest feedback from a trained and impartial eye to foster new ideas and produce change.
4) Experience within multiple industries
You will not only receive candid feedback, but their breadth of experience will benefit your team and supply knowledge you may not have otherwise acquired. They will be able to leverage knowledge from previous campaigns that have succeeded in similar industries while understanding how you compare to the competition.
5) Stays up to date with the latest trends and best practices
The CMO must be conscious of the newest trends in the market. “An outsourced CMO may be better positioned to recognize and capitalize on those trends than a startup executive wearing multiple hats.” Your company will have the flexibility to explore new marketing approaches without the long-term commitment.
6) Save time with clear objectives and action plans
When you hire a fractional CMO, you are paying for the highest quality elements of marketing without the waste of energy on day-to-day tasks. They know how to get to the basis of your issues and clear out the cobwebs to drive key strategic initiatives.
Five Reasons Why You Need A Fractional CMO
1) Your company isn’t ready for a full-time marketing executive
If you are a small company or start-up without a big enough budget to afford a full-time executive, outsourcing a CMO for a short period of time will be more cost-efficient while delivering the structure and proficiency to help your company mature.
2) Your marketing materials are coming from different sources
Maybe you’ve downsized your marketing team due to the pandemic, or you don’t have one person/department leading marketing. You may even have a talented team of creatives, but their efforts need guided direction. In cases like these, your materials may not align or ineffectively represent your brand image. A fractional CMO will organize the process and create a clear strategy, crafting your vision into a reality.
3) You lost your head of marketing
In their absence, it may be beneficial to fill the position with an interim leader to give your marketing needs immediate attention. A fractional CMO can offer relief and make sure you maintain momentum while you’re searching for a full-time candidate. They will also assist in the hiring process to allow for a quick and easy transition.
4) You are spending a large chunk of your budget on marketing, but not seeing the desired results
A fractional CMO offers an affordable plan and the ability to direct your efforts. Their knowledge allows them to enhance your strategy and drive revenue so you aren’t wasting your time or money. At a certain stage, every company reaches a plateau, and bringing in an expert to assess your pain points could help you avoid this rut.
5) You want to take your company in a new direction and don’t know how
Maybe you want to launch a new product or service and you need a little extra guidance, or you’re struggling to keep up with the competition. Someone with an unbiased perspective can step in and assess your needs with transparency while giving your brand an extra boost. Companies need to prepare for the future and outsourcing leadership will help you gain new insights and update your strategies and tools to keep up with the latest marketing trends.
Marketing is an ever-changing industry and companies will need to adjust in order to prosper in the future. As you can see above, a fractional CMO only serves to help you. They are experts with the ability to align your team, boost your brand, enhance your marketing strategies and raise your ROI, all within a realistic budget and time frame.
If your company is in its infancy, lacks marketing organization and direction, or can’t keep up with the competition, hiring a fractional CMO is a smart move for you.
A fractional CMO provides your business the same expert knowledge without the burden of executive-level costs.
Your company will benefit from the diverse experience they’ve acquired working with a variety of clients and industries.
The most important quality to look for when outsourcing a CMO is their compatibility with your company’s values and vision.
A fractional CMO is different from a marketing consultant because they work directly with your team for a longer period of time to ensure the success of your strategies and goals.
Your interim leader will say it like it is, and this honest feedback can be just what a business needs to move to the next level.
If hiring a fractional CMO makes sense for your business, contact the DCG Team and we can help you find the perfect fit today!