Should I Hire a Fractional CMO? Weighing The Pros and Cons
Why hire a Fractional CMO: 5 key benefits
In today’s dynamic business environment, companies need to stay agile and competitive. Many companies struggle to grow and earn their place in the market, especially in highly competitive industries where competitors are well-established brands.
Hiring a fractional Chief Marketing Officer (CMO) offers a strategic advantage, providing access to high-level marketing expertise without the long-term commitment and cost of a full-time executive. This flexible approach allows businesses to implement effective marketing strategies, driving growth and innovation rapidly.
A survey revealed that the use of Fractional CMOs has grown by more than 60% over the past five years. And that’s not all: according to Marketerhire, 81% of CEOs hiring fractional marketing partners said that freelance support made the marketing team more effective.
Keep reading to learn more about the benefits of hiring a fractional CMO and how to determine if your company needs its own.
The infographic illustrates the main advantages and reasons why hiring a fractional CMO is beneficial.
1. It is a cost-effective solution
While hiring a fractional CMO is not necessarily cheap, it is significantly more affordable than engaging with agencies and firms that often demand six-figure fees for similar services. This model enables companies to allocate their budget more efficiently, focusing resources on strategic initiatives rather than on overhead costs. Also, outsourcing to a fractional CMO instead of a full-time one means not paying for health benefits, retirement, equity, and incentives.
We’ve covered everything you need to know about the cost of hiring a Fractional CMO in this comprehensive guide.
2. Short-term commitment: a less risky option
A fractional CMO offers the flexibility of short-term contracts, reducing the risks associated with hiring a full-time executive. This approach allows companies to avoid the lengthy and resource-consuming hiring process of in-house staff, which may not always achieve the desired outcomes.
Instead, businesses can engage a professional with proven expertise and assess the partnership's effectiveness without a long-term commitment. The short-term nature of the contract means fewer business risks and greater adaptability to changing needs and circumstances.
3. You can access top-tier marketing talent
Fractional CMOs bring extensive experience and expertise, often exceeding that of an in-house CMO. Their work with various companies provides them with a broader market perspective and fresh ideas to implement. This diversity of experience enables them to offer innovative strategies and key insights that can drive significant business growth.
By hiring a fractional CMO, businesses can leverage top-tier talent and benefit from their extensive knowledge and proven track record in the industry.
4. Flexibility: they identify scalable tailored-business solutions
Thanks to their extensive experience, fractional CMOs can offer solutions that are specifically adapted to each company's unique needs. Their broad industry exposure allows them to quickly identify and implement scalable, tailored strategies that drive business growth. This flexibility ensures that the marketing efforts are aligned with the company's objectives, enabling businesses to respond effectively to market changes and evolving business goals.
5. Rapid implementation leading to faster results
One of the key advantages of hiring a fractional CMO is the rapid implementation of strategies that align sales and marketing goals to boost sales. By bypassing lengthy recruiting and hiring processes, businesses can quickly benefit from the expertise of a seasoned professional. This approach enables companies to achieve faster results, driving growth and efficiency without the delays associated with onboarding full-time staff. The immediate impact on sales and marketing alignment can lead to significant improvements in overall business performance.
When to hire a fractional CMO: Do it if your business needs….
To acquire new clients
A fractional CMO can develop and implement targeted marketing strategies to attract and acquire new clients. Their expertise in identifying market opportunities and crafting effective campaigns ensures that your business can expand its client base efficiently and effectively.
To launch a new product
A fractional CMO can develop a comprehensive go-to-market strategy for launching new products. Typically, within the first 30-60-90 days, the CMO and the company work together to create a strategic marketing plan based on business objectives and recommended programs to achieve them. This plan includes a roadmap for marketing activities, team structure, and budget. Their extensive experience ensures that the most effective marketing levers are pulled to maximize the product launch impact.
Access top-tier talented Fractional CMOs
Schedule a free 1:1 call to see if CBM Group is a good fitTo reach new audiences
Fractional CMOs can help businesses identify and tap into new markets and demographics. By leveraging their proven expertise and advanced market research, they craft innovative strategies to engage new audiences. This approach ensures that businesses can expand their reach effectively, driving brand awareness and generating demand in untapped segments.
To reduce costs without giving up marketing efforts
Hiring a fractional CMO allows businesses to maintain robust marketing efforts while reducing costs. They optimize marketing spend by focusing on high-ROI activities and efficient budget allocation. Their guidance helps businesses avoid unnecessary expenses and implement cost-effective strategies, ensuring that marketing objectives are met without financial strain.
Someone to lead your marketing team
A fractional CMO provides the leadership needed to guide and inspire your marketing team. They bring best practices, proven methodologies, and strategic oversight to ensure that the team operates efficiently. This leadership includes structuring the team with full-time employees or contractors, aligning efforts with business goals, and fostering a collaborative environment.
High-level guidance to stay competitive
Fractional CMOs offer high-level strategic guidance to help businesses stay competitive in the market. Their extensive industry knowledge and experience enable them to identify opportunities and threats, develop competitive strategies, and implement best practices. This strategic oversight ensures that businesses remain agile and can adapt to market changes effectively.
Data-driven marketing insights for strategic decisions
Fractional CMOs leverage data-driven insights to inform strategic marketing decisions. They analyze key metrics and performance data to identify trends, optimize campaigns, and make informed decisions. This approach ensures that marketing strategies are aligned with business objectives, driving better outcomes and maximizing return on investment. CMOs carry out market research, develop strategies and keep track of them to ensure total alignment with your business goals throughout the entire process.
A study featured in the Journal of Business Strategy found that companies employing Fractional CMOs were 36% more successful in reaching their long-term strategic objectives compared to those that did not.
Fresh eyes to stay ahead
Bringing in a fractional CMO provides a fresh perspective on your marketing efforts. Their objective viewpoint and diverse experience allow them to identify areas for improvement and innovative solutions. This fresh perspective helps businesses stay ahead of the competition by continuously evolving their marketing strategies and tactics.
Who should not hire a part-time CMO:
You have a complex marketing team
If your marketing team is complex and requires daily hands-on management, a fractional CMO might not be suitable. These teams often need a consistent, full-time presence to ensure seamless coordination between teams within the company.
A fractional CMO acts more as a consultant who offers the necessary knowledge to develop strategies and analyze insights, unlike an in-house CMO who often participates in operative and managerial tasks, too.
Your budget is extremely tight
While fractional CMOs provide cost-effective solutions compared to full-time hires, they might still be outside the budget for companies with extremely tight financial situations who are just looking to start their marketing department. In such cases, a marketing consultant could be a more affordable option, although they usually don’t offer the same level of expertise.
You are not ready to change
change. The usual for companies is hiring full-time C-suite officers, and hiring a fractional member of the board can seem challenging for those who are not used to this form of leadership. Take the time to evaluate how this type of strategy could benefit your company in order to make an informed decision and hire a fractional CMO when you truly feel ready.
Real cases, real results
Colleen Burns, the founder of CBM Group, is a highly experienced CMO with expertise in helping businesses thrive in the life sciences, medical technology, and healthcare devices industry. See how, through her expertise, she has harvested a series of successful cases in the market:
An excellent example is her work with a long-established data provider seeking to modernize its image for an IPO. Colleen collaborated with the C-suite to rename and rebrand the company, successfully implementing this new identity across five continents.
At that moment, the company was integrating over ten acquisitions, requiring a comprehensive rebranding strategy. This included developing a new website to reflect the reorganized suite of products and services and creating impactful video testimonials showcasing customer success stories.
Additionally, Colleen leveraged the company’s thought leadership to generate positive publicity, significantly enhancing the company’s market position. This was considered a monumental turnaround in the marketplace and resulted in one of the largest IPOs of the year.
| Fractional CMO | Full-Time CMO | |
|---|---|---|
| Average cost | Significantly lower (50%-75% less expensive), tailored to needs | Higher due to salary, health benefits, bonuses, retirement, stock options and/or equity |
| Speed of implementation | An average of 48% faster time-to-market for new products and services, translating into quicker returns on investment | Much longer hiring process, slower start |
| Untainted vision | Fresh, unbiased perspective with outsider ideas | Potential internal biases and contractual restrictions |
| ROI | According to this Forbes article, it can be +500% | It tends to be lower due to higher costs |
The first step to finding the right part-time CMO: Hear a proposal!
Finding the right fractional CMO starts with understanding your business needs and identifying a professional who can meet those requirements. At CBM Group, we make this process seamless. By booking a meeting with Colleen Burns, you can discuss your specific goals and challenges, and she will provide a tailored proposal outlining how her expertise can help your business thrive.
Don’t miss the opportunity to leverage top-tier marketing talent—schedule your consultation with Colleen today and take the first step towards achieving your business objectives.
FAQS
How to hire a fractional CMO?
To hire a fractional CMO, start by defining your business goals and setting a budget. Evaluate candidates based on their expertise and references in your company’s field. At CBM Group, Colleen Burns offers extensive experience in the life sciences, medical technology, and healthcare devices industries. Schedule a consultation to discuss your needs and receive a tailored proposal based on her proven track record and create a strategy to boost your sales.
What is the difference between a CMO and a fractional CMO?
A Chief Marketing Officer (CMO) is a full-time executive responsible for overseeing a company's marketing strategy. In contrast, a fractional CMO works part-time or on a project basis, providing high-level marketing expertise without long-term commitment. Fractional CMOs offer flexibility and cost savings, making them ideal for businesses needing top-tier marketing talent without the expense of a full-time hire.
What is the difference between a fractional CMO and a consultant?
A fractional CMO offers top-level marketing leadership and strategic oversight, often with extensive industry experience. They integrate into your company to drive long-term marketing initiatives. A consultant, on the other hand, typically provides advice on specific projects or issues without deeper involvement in day-to-day operations. Fractional CMOs bring a broader, more comprehensive approach to achieving business goals based on their extensive knowledge of the market.
Should I hire a fractional CMO or a Marketing Agency?
Hiring a fractional CMO provides dedicated, high-level strategic oversight and tailored marketing solutions, making it suitable for companies needing focused leadership. In contrast, a marketing agency offers a team-based approach, handling various aspects of marketing campaigns. The choice depends on your business needs: for strategic direction and leadership, a fractional CMO is ideal; for comprehensive campaign management, a marketing agency may be more appropriate.
