Let’s face it, expert marketing leaders are expensive, often prohibitively so. The position of Chief
Marketing Officer (CMO) – a person who leads all marketing activities – is a common one in
larger organizations, and they play a critical role in determining their company’s to-market
strategies. And having this expertise pays off; one recent study cited in the Harvard Business
Review indicates that companies with a CMO perform 15% better, on average, than companies
that do not.
It’s therefore an unfortunate reality that this critical expertise and experience is usually out of
reach for most small and medium sized businesses.
For this reason, small and medium-sized businesses (SMB) are seeking the help of Fractional
CMOs in significant, and growing, numbers. The Contract Manufacturing Organizations (CMO)
market, which includes a broad range of services including Fractional CMO, is expected to
reach US$290 billion by 2032, up from $168 billion today. Clearly, there is a large demand for
these types of services, and there will continue to be.
So as a small or medium-sized business, why should you consider hiring a Fractional CMO to
lead your marketing efforts? Here are five reasons.
Fractional CMOs are Cost Effective
Cost is the main reason that most organizations look at hiring a Fractional CMO. A full-time
CMO in North America is going to cost at least $150,000 (and often much higher) per year, plus
benefits, PTO, etc.
With a fractional CMO service, SMBs can get the same type of leadership, strategic
development and advice that a CMO provides, but at a cost that is better scaled to the size of
your business. With a Fractional CMO, your company benefit from the same expert advice that
their large competitors receive, but at a much more affordable cost.
High-end Expertise and Experience from Fractional Marketing Support
The primary reason CMOs are so expensive is that they have been around the block and have
the cred to prove it. They are experts in their fields, know how to lead marketing teams, build
websites, develop strategies, run campaigns, and quickly pinpoint and solve difficult challenges;
they understand digital marketing, brand management, content strategy and customer
acquisition. It’s difficult to find this kind of expertise without a CMO-like budget.
A fractional CMO provides this same level of expertise, but at a scale optimized for smaller
organizations. Fractional CMOs provide expert leadership-on demand.
Scalability for Your Internal Marketing Team
The ability to crank up (or down) the effort and time required from a Fractional CMO is a very
attractive feature of this kind of service. Do you have an important product launch or event
coming up that requires more effort? Does your business follow a cycle of busy and slow
seasons? Do you have a big project coming up that you need help with? These types of
challenges require flexibility and can be tough (and expensive!) to navigate.
But what can be a bug with full-time staff is actually a feature for a Fractional CMO. Flexibility is
built-into this type of arrangement, and ultimately allows businesses to allocate their resources
only when (and where) it makes the most sense.
Focus on Growth Acceleration
In-house marketing teams primarily focus on the day-to-day. Google campaigns, influencer
engagements, social media, web site content, and trade-shows take up most of their time. And
for good reason: these are the activities that fuel lead generation and keep revenues flowing.
A Fractional CMO will help those activities run smoothly, but is also spending time focused on
the bigger picture. What strategies can be developed to drive growth in the upcoming years?
How can your internal systems be optimized? How can your current activities be better
measured and analyzed to increase efficiency?
Large companies take advantage of this kind of expertise all the time. Now you can too!
Provide Leadership
As someone who has successfully led teams, your Fractional CMO can provide the leadership
and mentoring that your staff needs to grow their marketing skills, and ultimately become the
CMOs that we will need in the future.
Have you recently hired new staff for your marketing team that require onboarding and training?
Are there new initiatives you’re interested in trying, but aren’t sure how to get them off the
ground because your team lacks experience? Are you concerned that your team may not be
following best practices, or are dealing with issues they aren’t sure how to correct?
These are all areas where a Fractional CMO will provide help.
There are other benefits of retaining a Fractional CMO, but the five listed above are generally
the most important for the clients we have worked with.
Are you interested in exploring a Fractional CMO arrangement for your company? Contact us
today and let’s get to work!
