The Power of a Fractional CMO: Why Your Business Needs One for Success
Having worked as a fractional CMO for several years, I’m often asked, "When is the right time to bring in a fractional CMO?" Unfortunately, there is no magical answer here — there are several different times throughout a company’s lifecycle that it can make strategic sense. For most companies, though, it comes down to price, the need for experience, and bandwidth.
A full-time CMO can be expensive, making anywhere from $200K to $350K per year or more. Of course, this depends on the size of the company, location, experience of the individual, bonus plan, etc., but this price also does not include FTE overhead costs. Seeing this as unaffordable, growing companies oftentimes decide to hire more junior support. They will sacrifice experience for affordability. While this may work in the short run, many CEOs quickly realize their junior marketing person can only take the company so far.
Whether you need all the benefits of hiring a CMO or need some marketing bandwidth, hiring a fractional CMO can be the right decision, especially if you’re growing quickly. Here are some considerations when thinking about hiring a fractional CMO:
Cost Savings: Fractional CMOs typically work on a part-time or contract basis, allowing companies to access high-level marketing expertise without the expense of a full-time executive salary, benefits, and overhead costs.
Access to Expertise and Strategic Leadership: Fractional CMOs are experienced marketing professionals with specialized skills and knowledge in areas such as digital marketing, lead generation, branding, market research, and customer acquisition. They can provide strategic guidance, develop marketing plans, and execute campaigns to drive business growth and market expansion. By hiring a fractional CMO, you gain access to high-level strategic thinking and specialized skills without the long-term commitment of a full-time hire.
Quick Ramp-Up: Fractional CMOs are typically seasoned professionals who can quickly understand your business goals and hit the ground running. They bring a wealth of experience to the table, allowing them to make an immediate impact and deliver results more rapidly for your marketing efforts.
Network and Connections: Fractional CMOs often bring with them a network of industry contacts and connections, which can be valuable for partnerships, collaborations, or accessing new markets. Their extensive network can help your company expand its reach and opportunities.
Flexibility: Fractional CMO arrangements offer flexibility in terms of engagement duration and scope of work. Companies can scale the CMO's involvement up or down based on their evolving needs, ensuring that resources are allocated efficiently. Whether you need assistance with developing a marketing strategy, launching a new product, or optimizing your digital marketing efforts, a fractional CMO can tailor their services to meet your specific needs.
Objectivity and Fresh Perspective: An external fractional CMO brings an objective viewpoint to the table, offering insights and recommendations based on their external perspective. This can help identify blind spots, uncover new opportunities, and challenge existing organizational assumptions.
Scalability: As companies grow or undergo periods of change, fractional CMOs can adapt their strategies and resources to support evolving needs. Whether scaling marketing efforts for expansion or optimizing resources during lean periods, fractional CMOs offer scalability and agility.
Risk Mitigation: Hiring a fractional CMO allows companies to mitigate the risk associated with making a full-time executive hire. If the engagement doesn't meet expectations or circumstances change, companies have the flexibility to adjust or end the arrangement without the long-term consequences of a permanent hire.
Focus on Core Competencies: By outsourcing marketing leadership to a fractional CMO, companies can focus their internal resources on core competencies and strategic priorities, maximizing efficiency and effectiveness across the organization.
The ability for companies to gain access to marketing leaders part-time and at a fraction of the cost has changed the game for those who need senior-level marketing expertise affordably and quickly. Identifying the right situation in which to use a resource like this can help a business maximize its resources.
If you have further questions or would like to discuss your own marketing needs please reach out to me directly at krm@kentmora.com