What is a Fractional CMO?
I often get confused looks when I tell people I’m a fractional CMO (or fCMO). The term fractional is more common in independent contractors and consulting, but it’s pretty foreign to the everyday human. In this blog post, we will explore the role of an fCMO and how small and mid-sized businesses can leverage this to compete more effectively in their respective markets.
The role of fractional Chief Marketing Officer
A fractional Chief Marketing Officer — or fCMO — is a part-time contract executive who shares their marketing expertise with multiple companies, offering a cost-effective and highly beneficial solution for marketing challenges. They are hired to design and execute a marketing strategy that aligns with the company's goals. Unlike traditional CMOs, an fCMO works on a contractual basis, which can range from a few hours a week to many days a month, depending on the company’s needs. This allows companies with tighter marketing budgets to bring highly qualified and talented marketing leaders on board without paying a full-time salary plus benefits. It’s a huge savings for the business, while offering the fCMO flexibility and independence.
What does a fractional CMO do?
Strategy Development: An fCMO assesses the current market conditions, identifies opportunities and threats, and crafts a comprehensive marketing strategy.
Brand Management: They ensure that all marketing activities align with the brand's identity and values, helping to build a strong brand presence, defining your brand’s ideal client, and writing strong messaging to provide the best solution for your ideal client.
Lead Generation: An fCMO aims to generate your ideal customer leads through various marketing campaigns and initiatives.
Analytics and Adaptation: By analyzing marketing data, an fCMO can measure the effectiveness of marketing strategies and make necessary adjustments. Marketing is always in flux, and a strong fCMO will be able to pivot at the right time.
Why should a small business hire a fractional CMO?
Cost-Effectiveness
Hiring a full-time CMO can be a significant financial burden for small businesses. An FCMO, on the other hand, provides the same level of expertise at a fraction of the cost, allowing small businesses to invest their resources in other critical areas.
Access to Expertise
FCMOs often have a wealth of experience and have worked with various businesses across different industries. This exposure allows them to bring fresh perspectives and proven strategies, which can be invaluable for small businesses looking to stand out. On the other hand, some fCMOs work only in certain industries (such as professional services, manufacturing, consumer products, healthcare, etc.) and can provide more specific guidance that your company needs.
Flexibility and Scalability
The flexible nature of an fCMO's engagement allows small businesses to scale their marketing efforts up or down based on their current needs and budget. This agility is particularly beneficial in our current market, where things change rapidly and you never know when you may have to shift your business strategy.
Faster Implementation
Given their experience and the need to make a quick impact, fCMOs are adept at hitting the ground running. They can quickly identify areas that need improvement and implement strategies without the long lead times associated with hiring a full-time executive.
When Should a Small Business Consider an FCMO?
If your marketing efforts are lackluster or non-existent, an fCMO can jump in and quickly assess your company’s needs and provide a strategic direction and implementation plan.
If your business is growing and you need to scale your marketing efforts quickly, an fCMO can guide you through this phase.
If you plan to launch a new product or enter a new market, an fCMO can help create and execute a successful go-to-market strategy.
How much does a fractional CMO cost?
The cost of a fractional CMO can range from $1,000/month to well over $10,000/month. The fee is based on many variables, including the volume of work that needs to be implemented, the level of experience the CMO brings, the number of hours the CMO will be servicing the business per month, and the revenue the company brings in. The fCMO’s fee is typically customized for every client. Most fCMOs will have clients at a variety of fees. They may have a client who owns a small business of fewer than ten employees with no marketing team that only needs 12 hours of work per month — which would be on the lower end — and they may also have a client with a business of 100 employees and a small marketing team that needs a leader — which would be on the higher end.
The first step is meeting with the fCMO in a discovery call to discuss your needs. This is followed by hiring the fCMO to do a marketing audit to assess what you’re doing currently and where there are gaps in your marketing. After the audit is complete, they will present their findings and recommendations in a call, and at that point, you will discuss fees, deliverables, and terms.
How to become a fractional CMO
If you have a strong marketing background and feel you have a personal touch to bring to businesses, consider becoming a fractional CMO. A fractional CMO is a part-time contractor, not an employee of the companies they service. However, they serve as the business’s marketing leader and often are featured on the company’s website as the Chief Marketing Officer. An fCMO needs to be able to lead strategy, create marketing plans, lead a team of in-house support staff (or bring in their own contractors), and serve as the trusted marketing advisor for the business owner.
Many fCMOs specialize in one area of marketing (such as content marketing or digital ads), but a great fCMO has solid general knowledge about how all areas of marketing work. Think of a fCMO as a primary care physician (PCP). Your PCP is responsible for your general health and well-being and is very knowledgeable in medical practice. However, a PCP is not an expert in all areas of medicine. They are the first line of care when you know something’s wrong, and they are responsible for pointing out when they feel you need to seek treatment. They can refer you to the best specialists to make sure you’re getting the best treatment possible, and they coordinate your care.
To become a fractional CMO, you need to market yourself as such. If you want to be hired as a fractional CMO, position yourself just like you would with any service. You will need to network with others in small and medium-sized businesses to help spread the word. Referrals will be the most substantial way to find your first clients, and this will help you build your business.
But don’t rely on referrals. You must always be marketing (just like you would tell your clients!) Use your best content marketing skills to create a marketing plan you would be proud to make for a client. If you’re going to become a CMO, you need to walk the walk. Do your own brand strategy (or hire someone specializing in this) and clearly define your messaging. Post about your top content pillars on LinkedIn regularly. Build and optimize your website to rank in search engine results. Create a lead magnet and start building your email list. As you begin working with clients, track the results and create case studies for your marketing. It will take time, but doing a little work on your business every day will lead your ideal clients to your door.
What is the difference between a marketing consultant and a fractional CMO?
Marketing consultants and fractional CMOs have a lot in common. They both deliver strategy, offer marketing advice, and can implement marketing work. The main difference between a marketing consultant and a fractional CMO is that a marketing consultant is not looking to become a leader in your organization for the long term. A fractional CMO acts as a long-term ally. They embed themselves within your team, offering continuous strategic direction and leadership, and they serve as a leader to your employees who do the marketing implementation or bring in their own team of contractors to perform the work.
A Fractional Chief Marketing Officer can be a game-changer for companies looking to grow. By providing access to top-tier marketing expertise without the full-time price tag, an fCMO enables small and mid-sized companies to build and execute effective marketing strategies, ultimately leveling the playing field with larger competitors.
If you want to chat about what I can do for your business (yup, I’m a fractional CMO!), set up a free discovery call, and let’s talk.
