Having a chief marketing officer as part of your team can take your business to new heights but it also comes at a cost, which is why more and more startups are going the fractional CMO route.
However, there is still a lot of debate among business owners about whether they actually need a chief marketing officer, particularly in the first few years. Is it not simpler to just take care of the marketing yourself? Not necessarily.
A CMO could mean the difference between coasting along and seeing real, tangible growth earlier on.
Here’s what you need to know to decide whether a fractional CMO is right for your startup.
The Role of a Chief Marketing Officer
A chief marketing officer is someone who manages all aspects of a business’s marketing efforts.
By building brand loyalty and driving customer acquisition, a CMO can help you maximize your revenue streams a lot sooner.
Some of the main CMO responsibilities include:
- Brand management. Building a strong brand identity requires you to position your business effectively and communicate across the right channels on a consistent basis, which is one of the first responsibilities that a chief marketing officer carries.
- Research and analysis. Data is everything when it comes to marketing a business. A CMO can help you gain essential insights into your market as well as customer behavior and preferences, ensuring you are always making educated decisions.
- Strategy. Developing and implementing strategies that are aligned with company goals is another key function of a CMO. As is updating and optimizing these strategies over time.
- Marketing communications. To roll out a strategy, a chief marketing officer will oversee the development and execution of marketing communications, including social media, paid advertising, public relations as well as content and email marketing. Leveraging the latest digital marketing platforms and technology will be a core part of this.
- Customer acquisition and experience. There’s also a sales aspect to a CMO’s responsibilities as they ensure your startup is consistently focused on customer acquisition and the overall customer experience. The end goal is to build long-term relationships and drive brand loyalty to increase customer lifetime value.
- Analytics and performance. Lastly, a CMO is responsible for establishing key performance indicators to assess marketing activity on an ongoing basis, further aiding business decision-making.
And if you already have a small in-house marketing team, a chief marketing officer can help foster a more collaborative environment through team leadership and development.
7 Signs Your Business Needs a Fractional CMO
Now that you know what a chief marketing officer can assist you with, let’s look at some of the signs that indicate your startup could benefit from hiring a fractional CMO.
- There’s a lack of strategic direction. It’s essential for any business to align its marketing efforts with its company goals. If you’re unsure of the direction of your business and don’t have a roadmap in place, a fractional CMO can change this.
- Your team has limited marketing expertise. Marketing is a broad topic and it can be difficult to understand and manage all aspects of it when you’re trying to run a business. If you don’t have an in-house marketing team or your team is still on the junior side, a fractional CMO can bring in key knowledge and experience.
- You have budgetary constraints. Hiring a chief marketing officer means finding the funds for a full-time hire, which isn’t always possible when you’re just starting out. Hiring a fractional CMO means you benefit from all their expertise without you having to commit to a full-time employee. In essence, it’s a more cost-effective way to grow your business.
- There are plans to scale. Scaling a business comes with unique challenges that can be difficult to navigate without a marketing expert. If you have plans to launch a new product, expand into new markets, or your startup suddenly experiences rapid growth, you’re going to need someone with the right insights and expertise to guide you on this journey - a fractional CMO can do just that.
- You’re experiencing poor performance. If your existing marketing efforts are not producing the results you were hoping for, it’s wise to not continue in the hopes that things will improve. Bringing in a fractional CMO will give you a higher-level perspective again, help you reevaluate your efforts, and shape the direction you now need to take.
- There’s a lack of leadership. During the transitory phase of a business, it’s not always possible to guide and lead your team efficiently and consistently. A fractional CMO can offer interim leadership, ensuring everyone is on track and working towards the same objectives.
- You want to adapt to the digital landscape. Leveraging new marketing channels is one of the best ways to get your startup to stand out and grow your business. Hiring someone with a deeper understanding of the digital landscape can help you optimize your online presence more quickly in the most cost-effective way possible.
The Cost of Hiring a CMO Part-Time
There are several factors that determine how much it will cost to hire a fractional CMO.
- Level of experience. Extensive industry experience will often result in a higher hiring cost. However, hiring a fractional CMO with a proven track record will mean more benefits for your business.
- Time commitment. The amount of time a fractional CMO commits to your business will also affect the overall cost. Hiring someone on an hourly basis can cost anywhere from $500+ while monthly retainers range from $3,000 to $15,000 per month or more. The duration of a project will naturally also impact the cost.
- Additional expenses. While this is not always the case, some fractional CMOs do charge for travel and software subscription costs. You can always negotiate and find a way to include this in the total cost though.
Even though hiring a fractional CMO will be an additional expense, in the long run, it will still be far more affordable than committing to hiring a chief marketing officer full-time.
What to Look for in a Fractional CMO
Once you’re ready to hire a part-time chief marketing officer, it’s important that you know what to look for.
Here are some of the key considerations when hiring a fractional CMO:
- Proven experience. First, you want to look at a fractional CMO’s expertise and experience. Ask for detailed information on the industries they operate in as well as their marketing specialties. Their experience with the latest digital marketing platforms and technologies also counts. You want to see a proven track record before you go ahead and hire a CMO so don’t shy away from asking for references and proof of past performance.
- Matching leadership style. Next, consider a CMO’s leadership style. You want to establish whether they’ve managed teams before and what their leadership style is. Does it fit in with your organization’s culture? If not, your team could have a hard time coming together and meeting the necessary objectives. Naturally, you also want to make sure the hire is a good fit for you as the owner of the business.
- Analytical and strategic thinking. Once you start your search for a fractional CMO, there will be an initial discussion about your business goals. This is a good opportunity for you to gauge whether someone is an analytical and strategic thinker. You need to work with someone who can identify growth opportunities and knows how to use data to achieve objectives.
- Versatility. An adaptable and versatile CMO is valuable. The more they can adapt to different environments and markets, and the more varied their marketing disciplines are, the better.
- Expectations alignment. Lastly, you want to touch on the scope of your project and go through your expectations before you hire a fractional CMO. Can they deliver on what you need and do they have availability to dedicate enough time and attention to your business projects? Have a clear scope ready before you meet with potential hires.
In Closing
For startups and growing businesses that can’t necessarily afford to hire a full-time chief marketing officer, fractional CMOs are an excellent alternative. You benefit from all the knowledge and expertise that a seasoned marketing professional offers without having to find additional budget to incorporate a full-time employee.
