Businesses are changing how they work, and the gig economy has been one of the biggest shifts of the past decade. What started with drivers and delivery services has now scaled all the way to the C-suite. From venture-backed early-stage start-ups to established brands, CEOs are increasingly seeing the benefits of fractional executives, and particularly the fractional CMO.
Fractional CMOs are quickly gaining traction
With the highest turnover rate among executives, the CMO position has long been a headache for CEOs. The average CMO only lasts 20 to 30 months, and around 80% of CEOs say they are not impressed with their CMOs, compared with just 10% for CFOs and CIOs, according to Harvard Business Review.
These challenges lead companies to frequent CMO vacancies, or to eliminate the role, or to never create it in the first place. But no marketing leadership is not the answer in an era where marketing and tech has grown more complex and, at the same time, more full of opportunity for growth and ROI.
A model that fits many companies
As a contractor rather than a full-time employee, a fractional CMO can plug into your marketing needs. Companies still gain access to senior marketing leadership, with the fractional CMO providing world-class strategy and driving day-to-day execution, without the full burden of recruiting, hiring and retaining an executive who is already prone to high turnover.
When to consider a fractional CMO
Established companies without a sophisticated marketing function. Some businesses decide to forego a CMO, especially if the brand was built long before today's intricate marketing and tech landscape. Forward-thinking companies that want sustainable, long-term growth can tap a fractional CMO to guide the transformation.
Companies that need interim leadership or strategic insight. A fractional CMO can be fast relief when a role is vacant or when an external view is needed to audit operations and advise on direction. One of the most effective uses is when a company lacks a strategic plan or clear visibility over marketing activity. The CMO brings the expertise to craft a strategy and put the systems in place to enact and track it, allowing the CEO to make better-informed decisions.
Pre and post acquisition for private equity and venture capital. PE and VC firms need a marketing executive who can move fast: making pivotal decisions, building a team and pushing multi-channel growth. Before signing a letter of intent, a fractional CMO can help evaluate a target's marketing readiness, programmes, systems and people. Post-acquisition, they can develop and execute the go-to-market strategy and orchestrate a fractional marketing team to accelerate growth and lift valuation for the exit horizon.
With a fractional CMO involved from the outset of an acquisition, the opportunity cost of waiting to hire a full-time executive and a full internal team is eliminated. You improve metrics like revenue per employee, marketing headcount ratio and revenue per marketing employee, while cutting FTE-related costs including recruiting, training, retention and attrition.
Scope of work
A fractional CMO's breadth and depth of work depends on each company. Serving as fractional CMO, we work with the executive team to identify and capitalise on growth opportunities and to make sure marketing strategy, programmes, investments and tactics are aligned to deliver sustainable growth. We also provide the knowledge and tools to drive daily execution.
Typical scope includes: marketing and growth strategy; branding and messaging; integrated marketing plans, budget and media mix; marketing communications and sales toolkits; business and referral development; digital marketing, e-commerce and PPC/SEO; and marketing infrastructure and tools across sales, lead management, advertising, PR and automation.
Strategy plus action
The success of a fractional CMO depends on the ability to create a high-level strategy for your company and also execute it, using internal and external resources as needed. A fractional CMO who does not execute is no different from a strategy or management consulting firm: they leave you with a plan for your team to implement, and the playbook often becomes an expensive doorstop while your team meets the next deadline or puts out the next fire.
Here is the difference with an action-oriented fractional CMO: you get the same world-class insight as the big consulting firms, plus the drive and talent to turn the plan into reality. Corporate inertia is replaced with an on-demand marketing partner driving growth. Rather than a patchwork of disparate agencies, contractors and freelancers, you have a single team led by a fractional CMO helping you outpace the competition across both online and offline channels, and realise a materially higher return on your marketing budget.
Frequently asked questions
What is a fractional CMO?
A senior marketing leader who takes ownership of your marketing function on a part-time basis: strategy, team leadership, budget and results, without the cost or commitment of a full-time hire.
When does a fractional CMO make sense?
When you need senior marketing leadership but not a full-time executive: pre and post PE/VC deals, in vacancies, or in established companies without a sophisticated marketing function.
How is a fractional CMO different from a consultant?
A consultant advises and leaves. A fractional CMO takes ownership: leads the team, owns the plan, and reports on the number, on a part-time basis.