What Is Fractional CMO & How They Help Drive Revenue
What does Fractional CMO mean?
A fractional Chief Marketing Officer (CMO) is a marketing expert who provides strategic advice to companies on a part-time basis. Businesses that are open to this innovative approach benefit from these executives’ experience and knowledge to significantly impact growth and sales without the long-term commitment and expenses that a full-time contract entails.
Because of CMOs’ increasing success, 30% of CEOs are considering expanding their fractional hiring. These experts can also be called “outsourced CMOs”, “freelance CMOs” and even “virtual CMOs” depending on their work modality.
Fractional CMOs help businesses develop and implement effective marketing strategies tailored to their specific needs.
What is the difference between a CMO and a fractional CMO?
5 key benefits
A Chief Marketing Officer (CMO) is a full-time executive responsible for a company's marketing strategy and execution. In contrast, a fractional CMO offers the same expertise and leadership on a part-time or project basis, providing flexibility and cost savings while delivering high-level strategic insights and implementation.
1. Lower overhead costs
When it comes to how much a fractional CMO costs, they offer significant cost savings compared to a full-time CMO (50-75% less). While a CMO requires a salary, bonuses, and benefits, a fractional CMO works on a static monthly fee or project basis, reducing overhead expenses while providing expert marketing leadership.
2. Access to high-level talent and proven expertise
A fractional CMO offers access to top-tier marketing talent and extensive expertise. Small and medium companies that can't afford high-level marketing knowledge on a full-time basis can benefit from an outsourced CMO, gaining access to sophisticated marketing strategies and insights that drive growth and enhance competitiveness.
3. Flexible working arrangements
With a fractional CMO, businesses can adjust working hours to match specific needs and project requirements. This adaptability ensures that companies only pay for the expertise they need when they need it, optimizing resources and aligning with their growth stages.
4. Provide objective insights
Thanks to their company-outsider perspective, fractional CMOs can bring a fresh perspective without the internal biases a full-time CMO could have. This way, they can build the most effective strategies without being affected by the precepts of company culture.
5. Rapid implementation of strategies
Fractional CMOs often have a portfolio of their success stories, allowing anyone interested in their services to take a look at their experience without having to undergo an extensive recruiting process. Hiring a fractional CMO represents a quick insertion into the company and, thus, a quick implementation of strategies.
What does a Fractional CMO do? A multifaceted role
A fractional CMO takes on various critical roles within a company, providing a comprehensive range of marketing expertise and strategic guidance. Here are some key aspects of their multifaceted role:
Strategic visionary: Leading marketing strategies
A fractional CMO develops and leads high-level marketing strategies that align with the company's overall business objectives. They identify key opportunities and create roadmaps to achieve long-term growth.
Brand architect: Developing and positioning your brand
A fractional CMO is instrumental in building and refining the company's brand, ensuring it resonates with the target audience and stands out in the marketplace. They craft compelling narratives and positioning strategies that drive recognition and loyalty.
Growth hacker: Optimizing lead generation and sales funnels
A fractional CMO focuses on accelerating growth by optimizing lead generation and refining sales funnels. They implement innovative tactics to attract and convert prospects, maximizing the efficiency and effectiveness of marketing efforts.
Data guru: Ongoing performance tracking
A fractional CMO continuously tracks and analyzes marketing performance data to ensure strategies are yielding the desired results. They use data-driven insights to make informed decisions, adjust tactics, and enhance overall marketing effectiveness.
Team catalyst: Boosting your marketing team
A fractional CMO acts as a catalyst for your marketing team, providing guidance, mentorship, and leadership to your in-house team. Additionally, they ensure alignment between sales and marketing, fostering collaboration that drives better results and overall business growth.
| Responsibilities | Benefits |
|---|---|
| ✅Marketing strategies leadership | 📈Cost-effectiveness |
| ✅Brand development and positioning | 📈Access to top-tier talent |
| ✅Lead generation & sales optimization | 📈Proven track record |
| ✅Ongoing performance tracking | 📈Faster implementation and results |
| ✅Sales and marketing alignment | 📈Flexible and efficient dynamics |
How does a Fractional Chief Marketing Officer work?
One-time workshop
Fractional CMOs may offer a session of assessment to kickstart a company’s marketing efforts and address specific needs.
CBM Group offers a one-time workshop that provides flexible and scalable commercial leadership for life sciences, medical device, diagnostics, and healthcare technology companies. The session includes a marketing punch list, brand and messaging audit, marketing and systems audit, and a 6-month marketing overview and execution plan.
Engaged capacity
CBM Group's engaged capacity service involves a fractional CMO working with your team over a 3-month to 1-year period, delivering a complete strategy, building a go-to-market plan, providing leadership, and overseeing daily activities. They are responsible for ongoing campaign optimization and KPI measurement. This type of engagement is often charged based on a monthly fee.
Advisor capacity
The advisor capacity includes biweekly check-ins, strategic leadership, coaching, and unlimited email support to achieve KPIs and ensure sustained growth and strategic alignment. This is a hybrid modality offering long-term support through periodic participations.
You can find all the details of CBM Group's services here. For any questions, feel free to contact Colleen Burns, the founder, at cburns@cbmgrp.com.
Who hires outsourced CMOs: Benefits for various industries & company types
Why hire a fractional CMO? Take a look at how different businesses can benefit from this type of partner depending on industry and company type.
Per industry
| Healthcare & Biotech | Healthcare and biotech companies hire outsourced CMOs to navigate the complex regulatory environment, develop strategic marketing campaigns, and build brand trust. These industries benefit from a fractional CMO's expertise in targeting niche markets, enhancing product launches, and leveraging data to drive patient engagement and retention. |
|---|---|
| Technology & Software | In the fast-paced tech world, fractional CMOs provide critical insights into market trends, competitive analysis, and innovative marketing strategies, accelerating product adoption and optimizing digital marketing efforts in both B2B and B2C strategies. |
| Financial Services | Financial services firms rely on fractional CMOs to enhance their marketing strategies, focusing on customer acquisition, retention, and brand loyalty. |
| E-commerce & Retail | E-commerce and retail companies benefit from fractional CMOs' expertise in digital marketing, customer experience optimization, and data-driven decision-making, enhancing online presence and driving conversions within a supply chain merging both physical and virtual management. |
| Real Estate | Real estate firms hire fractional CMOs to develop comprehensive marketing strategies that highlight their properties and services and bring valuable insights into market trends, customer preferences, and competitive positioning. |
Per company size:
| Startups | Startups hire fractional CMOs to gain high-level marketing expertise without the financial burden of a full-time executive, helping them build their brand and establish a market presence for their innovative products and services. |
|---|---|
| SMEs | SMEs benefit from fractional CMOs by leveraging their strategic guidance to compete with larger companies, aligning marketing plans with growth objectives and budget constraints. |
| Established enterprises | Established enterprises hire fractional CMOs to bring fresh perspectives and innovative marketing approaches, adapting to market dynamics and optimizing marketing spend. |
| Turnarounds | Companies in turnaround situations hire fractional CMOs to revitalize marketing efforts, rebuild brand reputation, and regain market share, especially bringing a fresh perspective to act with an objective view. |
What makes a good fractional CMO and how to identify one?
Review their portfolio and check references
A good fractional CMO will have a robust portfolio showcasing their past successes and case studies. Reviewing their portfolio allows you to see the tangible results they have delivered for other companies, their reliability and their impact potential.
Assess industry and business culture fit
A good fractional CMO has a specific field of specialization, as each industry and business type has characteristics and needs that need to be specifically addressed. Beware of partners who don’t take these factors into consideration. In the case of Colleen Burns, CBM Group’s founder, she has extensive experience in life sciences, medical devices, and healthcare technology, making her well-suited for companies in these fields.
Evaluate communication and strategic thinking
Effective communication and strategic thinking are critical traits of a successful fractional CMO. Evaluate their ability to articulate ideas clearly, present strategic plans, and engage with your team. Look for fractional CMOs who offer to contact them beforehand to see how they perform in this aspect.
Access top-tier talented Fractional CMOs
Schedule a free 1:1 call to see if CBM Group is a good fitSet clear expectations and discuss metrics
Establishing clear expectations and metrics is vital for a successful engagement with a fractional CMO. Discuss your goals, timelines, and key performance indicators (KPIs) upfront, even before signing a contract. Keep an eye out for intangible goals and promises that seem too good to be true.
Success cases: The real deal
Look for success cases that highlight the fractional CMO's ability to deliver results. Case studies showing how they have helped companies achieve significant growth, overcome challenges, and implement successful marketing strategies can provide confidence in their capability to drive similar outcomes for your business.
Let’s take a look at one of Colleen Burns’s success cases:
She built a marketing engine for a $40M medical diagnostics company that manufactured a handheld blood analyzer, doubling its revenue in three years. Initially adopted in fewer than 100 hospitals, the system faced low awareness and resistance. Colleen conducted market research, created value propositions, developed a new website, and provided new sales materials. She trained the sales team and nursing staff, fostering expansion into OR, ED, and NICU units. Her efforts led to double-digit growth over five years, multi-department implementations, and cultivated physician and nurse champions who promoted the technology's benefits.
Is your business ready for growth? Ask for a proposal!
If your business is looking for sustained growth and you need expert marketing leadership without the full-time commitment, a fractional CMO could be the perfect solution. By leveraging the expertise of a seasoned professional, you can drive significant results and achieve your business goals. To explore how a fractional CMO can benefit your company, complete the CBM Group form and schedule a call with Colleen Burns, our founder. Discover how tailored marketing strategies and leadership can boost your business forward.
FAQs
Is a fractional CMO worth it?
Absolutely, a high-quality fractional CMO is worth it. Beyond cost savings, they bring extensive experience and marketing expertise to your company. A fractional CMO provides an unbiased, fresh perspective, helping to identify new opportunities and innovative strategies.
What is the difference between a fractional and an interim CMO?
A fractional CMO offers part-time marketing leadership on an ongoing basis, while an interim CMO is typically hired full-time for a short, transitional period. Fractional CMOs offer flexibility and cost-efficiency by working on specific projects or for a set number of hours each month, whereas interim CMOs are temporary full-time executives brought in during a period of change.
What is the difference between a fractional CMO and a consultant?
A fractional CMO offers more in-depth and long-term strategic leadership compared to a consultant, who may provide short-term advice without full integration into the company's operations. Fractional CMOs often have extensive marketing expertise and proven success in driving growth. It's essential to verify their aptitudes by reviewing portfolios, checking references, and assessing their fit with your business, as some may inaccurately label themselves as CMOs without the necessary expertise to attract more clients.
