What is a Fractional CMO & the benefits for your business
Are you experiencing rapid growth? Don't have the time or resources to devote to marketing? A fractional CMO can be a game-changer, providing expertise, flexibility, and a fresh perspective to help you succeed.
What is a fractional CMO?
A fractional CMO, or Chief Marketing Officer, is a marketing executive who works with your company on a part-time or project basis. Fractional CMOs bring a wealth of experience and expertise to the table without the cost and commitment of a full-time employee. They can help you develop and execute marketing strategies, manage campaigns, analyse data, and more.
Fractional CMOs are entrepreneurs themselves, with a deep understanding of the challenges and opportunities facing growing businesses. They can work with you to develop a marketing plan that fits your budget and goals and help you stay up-to-date on the latest trends and technologies.
4 Benefits of hiring a fractional CMO
There are many benefits to hiring a fractional CMO for your business. Here are 4:
1.Experience
Fractional CMOs have a wealth of experience and expertise in marketing. They have worked with various businesses and industries, typically for 15-20+ years and can bring fresh ideas and perspectives to your marketing efforts. They also stay up-to-date on the latest trends and technologies, so you can be sure you are leveraging the latest marketing tech, channels and programs to stay ahead.
2. Flexibility
One of the most significant benefits of hiring a fractional CMO is the flexibility they offer. You can hire them on a part-time or project basis, so you can get the expertise you need without the commitment of a full-time employee. It can be beneficial if you're experiencing rapid growth, without a dedicated marketing team or leader, or need help with a specific project or campaign.
3. Cost-effective
Hiring a full-time CMO or experienced marketing headcount can be expensive, especially for a start-up or growing business. Fractional CMOs offer a cost-effective alternative, providing the expertise you need without the overhead costs of a full-time employee.
4. Fresh perspective
Fractional CMOs can bring a fresh perspective to your marketing efforts. They can help you think outside the box and develop new and innovative ways to reach your target audience. It can be beneficial when tackling that next growth stage, such as entering new markets or launching new services or products, especially if internal resources and ideas are currently constrained.
Signs that your business needs a fractional CMO
So how do you know if your business needs a fractional CMO? Here are a few signs:
Rapid growth
If your business is experiencing rapid growth, you may not have the time or resources to devote to marketing. On the other hand, suppose your expertise is in operations or sales. A fractional CMO can help you expand into new markets, launch new product/service offerings or scale demand & your marketing team without blowing your marketing budget.
Lack of expertise
If you don't have a dedicated marketing team or don't have the expertise to develop and execute a marketing strategy, a fractional CMO can help fill that gap. They can bring the expertise you need to take your marketing efforts to the next level.
Stagnant growth
If your business has hit a plateau and you need help to break through, a fractional CMO can help. They can bring a fresh perspective and help you develop and execute a new marketing strategy to get your business back on track. A marketing strategy combined with 90-day action plans ensures you can build momentum and grow repeatably quarter over quarter.
Cost Comparison: Fractional CMO vs. full-time CMO
So how does the cost of a fractional CMO compare to a full-time CMO? Let's take a look.
Salary
According to Payscale, the average salary for a full-time CMO in Australia as of 2023 is $186,198. If you want a CMO above the 50th percentile, you should plan on spending a fair bit more than that.
This also doesn't include bonuses, insurance, or super payroll tax, which can add another 20-30%, so you're quickly up to $250,000+ (all-in) for a full-time CMO.
Fractional CMO
Fractional CMOs typically charge an hourly rate or a project fee. The average hourly rate for a fractional CMO is between $200-$350 per hour. However, this can vary depending on the experience and expertise of the CMO, as well as the scope of the project.
Cost Comparison
Assuming a full-time CMO works 38 hours per week, their hourly rate would be $95. This is less than the average hourly rate for a fractional CMO. However, when you factor in the cost of benefits etc, the all-in costs for a business can be upwards of $140 per hour.
A fractional CMO can provide the same expertise at a fraction of the cost (yes, it's starting to sound like a tagline:).
Fractional CMOs typically charge on a retainer basis. A business with clear company goals/strategy and a small marketing team may require a fractional CMO 1 day per week. At an average cost of $275 per hour, a fractional CMO will cost the business (all-in) $8,800 per month or $105,000 per year.
How to find the right fractional CMO for your business
So how do you find the right fractional CMO for your business? Here are a few tips:
Look for experience.
When hiring a fractional CMO, look for someone with experience in your industry or niche. They should have a track record of success and be able to provide references or solid case studies.
Look for recommendations within your network.
Here in Australia, fractional services, including fractional CMOs, are growing quickly. Particularly within your industry or niche, look for recommendations or 1st & 2nd-degree connections on Linkedin that have transitioned from full-time work to corporate or agency roles and now offer fractional services.
Look for a good fit.
The fractional CMO should be someone you feel comfortable working with who understands your business and goals. Look for someone who is a good communicator, responsive, and flexible. Remember you're hiring an executive to join your team, so take your time to have several conversations, meet the broader team & ensure you're both a good fit for each other.
What to expect when working with a fractional CMO
Working with a fractional CMO can be a great experience, but knowing what to expect is important. Here are a few things to keep in mind:
Clear communication
Clear communication is key when working with a fractional CMO. Make sure you're on the same page when it comes to goals, timelines, and expectations. Regular check-ins and updates ensure everyone is on the same page.
Flexibility
Fractional CMOs offer a lot of flexibility, but it's important to remember that they are also working with other clients. Be flexible with timelines and schedules, and be willing to find availability that works for both parties.
Trust
Trust is essential when working with a fractional CMO. They are bringing their expertise to the table, so you should be willing to listen to their advice and recommendations (like you would an internal executive). Trust that they have your best interests and are working towards the same goals.
Fractional CMO vs. other marketing consultants
So how does a fractional CMO compare to other marketing consultants? Here are a few key differences:
Full-service marketing agency
A full-service marketing agency can provide various marketing services, from branding and design to SEO and PPC. The challenge is having the capacity as a business owner or often limited marketing resources internally to develop the right multi-year strategy & drive the agency to achieve the results.
Freelance marketer
A freelance marketer can provide expertise on a project basis but may have a different level of experience than a fractional CMO. An ongoing retainer with a fractional CMO guarantees they'll be available and accountable to serve your business which you only sometimes get with freelance support.
In-house marketing team
An in-house marketing team can provide a dedicated resource for your marketing efforts; however, it will come at a cost. Getting the right mix of experience and flexibility for your changing business needs can also be challenging.
Is it time to consider a fractional CMO for your business?
With expertise, flexibility, and a fresh perspective, a fractional CMO can help you achieve your goals without the cost and commitment of a full-time employee.
Suppose you're experiencing rapid growth, looking to transform your business or lack the expertise to develop and execute a marketing strategy. In that case, it may be time to consider hiring a fractional CMO.
Nugget offers fractional CMO services for clients here in Australia and can advise if this level of marketing support will suit your needs. If you want to learn more or consider a fractional CMO for your business, get in touch.