In the dynamic world of business, the role of a Chief Marketing Officer (CMO) is pivotal in steering a company towards success. However, not every business can afford or needs a full-time CMO. This is where a fractional CMO becomes relevant.
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The idea of the fractional CMO has grown in popularity in recent years. Companies are seeking modern solutions to marketing leadership challenges.
A solution like a fractional CMO can be beneficial as it provides your company with a high-level commercial leader with greater flexibility than before.
Table of contents:
What is a fractional CMO?
Why choose a fractional CMO?
Implementing a fractional CMO in your business
Experiences from the field
Fractional CMO model limits risks for both the supplier and the client
Less waste with a fractional model
What it takes to be a Fractional CMO
Width of experience and experiences are unmatched
Matching Fractional CMO with Growth Marketing Team
Fractional CMO is better for both
Frequently Asked Questions about Fractional CMOs
What is a fractional CMO?
A Fractional CMO (also a Remote Fractional CMO, Part-time CMO, or CMO as a Service) is a professional service where businesses can access the expertise of a seasoned CMO without the commitment of a full-time position. A fractional CMO often works remotely and with several clients.
This model allows companies, especially small to medium-sized businesses, to leverage the strategic insights and experiences of a CMO on a part-time or temporary basis.
Why choose a fractional CMO?
Cost-effective solution
Hiring a full-time CMO can be a significant financial investment. A Fractional CMO, on the other hand, offers flexibility and cost-effectiveness, allowing businesses to manage their budgets more efficiently while still obtaining high-level marketing expertise.
Access to expertise
A Fractional CMO brings a wealth of experience and a fresh perspective, having worked across various industries and markets. This diversity in experience can be invaluable in crafting unique and effective marketing strategies tailored to your business needs.
Scalability
As your business grows, your marketing needs will evolve. A Fractional CMO can scale their services to match the pace and size of your business, ensuring that your marketing strategies align with your current objectives and resources.
Focus on core business functions
With a Fractional CMO handling your marketing strategy and execution, you and your team can focus more on core business functions. This division of labor can lead to increased productivity and allows for more efficient use of internal resources.
Read more of benefits of MaaS solutions >
- + No need to recruit a person and pay employer costs
- + You’re not limited to what’s available on open markets, as top talent may be hard to find and attract
- + The service adjusts to your changing needs in both difficulty and quantity of the required work
- + Top-notch expertise at your disposal
- – There’s no employee sitting at your office
- – The essential trust between the service provider and the client may be hard to build
Read more of benefits of MaaS solutions >
Implementing a fractional CMO in your business
Integrating a Fractional CMO into your business requires clear communication and a mutual understanding of goals and expectations. It’s crucial to establish a solid working relationship where the fractional CMO becomes an integral part of your team, even if not present on a full-time basis.
Setting clear objectives
Begin by defining what you aim to achieve with your marketing efforts. Clear objectives will guide the fractional CMO in developing a strategy that aligns with your business goals.
Regular communication
Maintain regular communication to ensure that strategies and tactics remain aligned with your business objectives. This also allows for timely adjustments in response to market changes or business needs.
Flexibility and adaptability
Be open to new ideas and approaches. A fractional CMO will bring a fresh perspective that can lead to innovative strategies and can adapt quickly to the changing business landscape.
“The cooperation has been professional and tailor-made since the beginning of the first meeting. There are always clear goals with clear budgets and deadlines. If something needs to be changed, it is changed fast, and budgets are adjusted if necessary….”
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Experiences from the field
I’ve had the chance to work as a fractional CMO in a variety of companies. I began my marketing career promoting digital services in the global shipbuilding industry, a demanding and complex endeavour. I’ve held marketing leadership roles in both heavy industry and high-tech sectors as a full-time employee. Later, I worked as a fractional CMO through Aboad and in companies that I co-owned.
Fractional CMO model limits risks for both the supplier and the client
A big advantage is that the companies I worked with could limit the resources used and risks taken. The same benefits that companies enjoy from fractional roles also apply to the individuals in these positions. You’re not solely dependent on one company for your livelihood, so you don’t have to put all your eggs in one basket.
Less waste with a fractional model
Based on my experience, a full-time marketer tends to have more waste in their day compared to a fractional one. Therefore, a fractional marketer might be able to accomplish as much, if not more, than a full-time one. As a fractional marketer, you provide a larger proportion of value-creating hours, enabling you to achieve a higher return than a traditional employee. Sounds good, doesn’t it?
What it takes to be a Fractional CMO
So far, we’ve only discussed the benefits of fractional CMOs. While there may not be any downsides, there are challenges that could lead to failure if a fractional CMO is unable to manage themselves:
- The companies you work with can’t help you prioritize or manage your workload, as they only see a fraction of it.
- You will be expected to do more than you are capable of time-wise.
- It’s crucial to feel comfortable voicing disagreements with your clients when necessary to prevent making unsound decisions for the sake of appeasement.
- If you don’t manage your endurance, you could burn out and potentially lose your roles at the companies.
As you can see, the fractional role requires determined, strong-willed individuals who get things done. But with the removal of some of the safeguards of employment in a single company, your freedom and monetary upside are uncapped.
Width of experience and experiences are unmatched
One of the primary reasons our clients appreciate the fractional work model is due to the learning and adaptability it fosters within an individual professional. This professional, having visibility across multiple companies, is able to implement the best solutions from one to the other. What they learn from one client can be utilized to benefit others. Furthermore, the next learning opportunity may occur with a different client, making this process more streamlined as a shared resource. Unlike those who work for a single company and learn everything through it.
“I wanted a stellar CMO for us, someone who could take full responsibility for the Sales & Marketing budget and marketing execution. Juha and Aboad were the perfect choice because, in addition to bringing in a first-class individual who fit perfectly into our team, we also got the entire marketing team from Aboad. …”
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Matching Fractional CMO with Growth Marketing Team
No one can master and do everything. A significant benefit of our fractional CMO service is the access to a Growth Marketing Team. This is crucial because, like full-time employees, fractional CMOs may encounter situations that require expertise beyond their scope. By utilizing the Growth Marketing Team, we can enhance our capabilities and reduce the workload on the CMO.
Fractional CMO is better for both
The potential of a fractional CMO model was never limited by technology but rather by attitudes. Many people prefer full-time employees because it feels like they have more ownership. However, when a full-time employee leaves, they leave entirely. A fractional might not or could enable a more gradual change as needed.
Frequently Asked Questions about Fractional CMOs
1. What is a fractional CMO and what do they do?
A fractional CMO (or CMO as a service) is a senior marketing executive who works for your company part-time. They serve as your Chief Marketing Officer while dividing their time between multiple organizations, providing each client with high-level marketing leadership on a flexible schedule.
2. What is the difference between a fractional CMO and a full-time CMO?
In practice, the roles of the fractional and full-time CMO are the same. However, a fractional CMO differs in several key ways:
- Works as a service provider rather than an employee
- Dedicates a portion of their time to each client company, based on specific needs and agreements
- Offers a more cost-effective solution due to higher per-hour productivity and lower overall costs compared to employing top talent full-time
- Brings broader knowledge and a more extensive professional network
3. How much does a fractional CMO typically cost?
A fractional CMO is an investment with pricing models that range from hourly to monthly rates. Monthly costs typically run in the thousands, varying based on the CMO’s expertise level, workload requirements, and the specific needs of your company.
4. How does working with a fractional CMO work in practice?
A fractional CMO integrates into your company just like any other team member. While the contractual arrangement and work structure differ from a full-time employee, the day-to-day collaboration and results remain the same from the client company’s perspective.
5. What services do fractional CMOs usually provide?
The services of a fractional CMO vary based on their expertise and the client company’s needs, similar to a traditional CMO. They typically create marketing strategies in collaboration with sales teams, implement these plans independently or through suppliers, report results to management, and drive company development.
6. Which types of companies can benefit from hiring a fractional CMO?
Growth companies that aren’t yet ready to commit to a full-time top-tier CMO can benefit most from hiring a fractional CMO. These companies want the expertise but need a bridge to their future full-time CMO. For larger enterprises and other companies, a fractional CMO can serve as an immediate replacement when a CMO departs, maintaining momentum while the company searches for a permanent hire.
7. Why should a company consider hiring a fractional CMO?
Companies benefit from hiring fractional CMOs in multiple ways: cost-effectiveness, access to top-tier talent, lower risk, and quick implementation. Since many experienced CMOs now choose to work in fractional roles, companies can access high-quality talent they might not otherwise be able to afford or attract. This helps businesses accelerate their growth more rapidly.
Interested?
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