Bring in the Right Talent with a Fractional CMO
Outsource Marketing Leadership for Long Term Business Success
The word, fractional, has been gaining momentum in today’s business world. Investors can purchase fractions of stock or real estate. And, now it is becoming increasingly popular for businesses to hire a fractional executive such as a CMO or chief marketing officer. Savvy business owners realize that a fractional CMO can fulfill a variety of roles at a cost that fits in a company’s current budget.
Portrait of a Fractional CMO
A fractional CMO is a marketing executive hired to establish or lead your company’s marketing efforts on a part-time or short-term consultative basis. With this type of arrangement, small to medium businesses (SMBs) can afford top marketing leadership. The financial burden of hiring a full-time chief marketing officer averages about $175K per year just in salary.
On average, a fractional CMO spends 15-20 hours per week working with a client. Engagements typically are six months or longer, resulting in a high level of commitment from both parties.
The Benefits a Fractional CMO Provides
A chief marketing officer plays a critical role in a business’ success. However, there are times when a fractional CMO may be just the solution for a company’s current needs as demonstrated by the benefits detailed below:
1. Strategic Direction
To be successful, a business must have a strategy. A fractional CMO can provide that much needed strategic direction because he/she brings extensive experience. The ability to provide strategic direction is the number one reason why a company hires a fractional CMO. Without a sound strategy, a business will not be able to successfully meet its growth goals.
2. Fresh Perspective
A company can become stuck in a rut. Current marketing efforts are not achieving the results desired. Fractional CMOs can provide a fresh perspective without any existing biases. Also, they have vast and different experiences to draw upon. Their fresh marketing ideas can lead to new and better ways to expand target audiences, resulting in business growth.
3. Team Leadership
Without a strong leader, teams can often become rudderless. Deadlines are missed. Duplication of effort happens frequently. There is no clear set of KPIs (key performance indicators). However, a fractional CMO can overcome these issues and provide much-needed leadership to employees and contractors. The result will be a happier marketing team that has a clear purpose and feeling of being valued.
Reasons Why to Hire a Fractional CMO
Fractional CMOs tend to benefit SMBs most. Below are four reasons to hire a fractional CMO:
1. Not Ready to Commit to a Full-Time CMO
A company can grow yet a full-time CMO may still be out of its reach. As mentioned previously, the average annual salary for a full-time CMO is $175K. However, once health benefits and a retirement account are added this number escalates to $250K per year. Often a company does not yet have the amount of work that warrants this level of executive compensation; therefore, a fractional CMO is an excellent solution for now.
2. Fill a Leadership Gap
Leadership gaps occur every day at companies. A company’s CMO may take a maternity or family leave. A chief marketing officer may leave the company, but there is no successor waiting in the wings. A fractional CMO can provide the necessary marketing leadership to ensure programs continue to move along. Also, he/she can ease that transition when the existing CMO returns or a new one is appointed.
3. Need an Assigned Marketing Leader
Even though many companies have been in business for years, they do not have an assigned marketing leader. These companies are using marketing tactics of the past. To take an organization to the next level, a marketing transformation must occur first. And, with the impact of COVID-19, a strong digital marketing presence is particularly important for increasing business. A fractional CMO with deep digital expertise can lead this transition to new marketing strategies and tools.
4. Overcome Fragmented Marketing
Sales teams should be actively using marketing materials, not creating them. If they are producing their own presentations, spec sheets, and email campaigns, a company should consider hiring a fractional CMO. This part-time marketing executive can ensure that materials are on message and are true to the brand. And, instead of creating one-off marketing materials, integrated marketing campaigns will be produced, ensuring efficient use of marketing dollars.
Adding Marketing Leadership
Most small and mid-sized companies cannot afford a full-time CMO, but marketing leadership is key to success for any size organization. A fractional chief marketing officer can be a great solution for these businesses. This executive alternative can provide marketing leadership and expertise at a reduced cost and risk.
Members of the diamonddog Marketing team have been fractional CMOs for companies that wanted to go to the next level or be acquired. Whatever your long-term goals are, we can help you achieve them with a part-time chief marketing officer. For further information, please contact us at 847-269-1422 or firstname.lastname@example.org.
January 24, 2021