Why Fractional CMOs Make Sense in an Uncertain Economy

Predictions of an impending recession have confounded pundits, economists, and journalists for months. No doubt, between layoffs at large tech companies, stunningly swift bank failures, and strong, but cooling jobs data, something is in the air even if the economy isn’t shrinking. 

Business leaders are proceeding with some caution, but don’t want to overreact and hurt revenue growth. When it comes to hiring, for example, companies who haven’t let people go aren’t backfilling attrition, and are turning to contractors instead of new hires.

In an uncertain economy, businesses face many challenges, including revenue risk, tighter budgets, and increased competition. But even in good times, many companies struggle to develop and execute a comprehensive marketing plan that results in attributable growth. Now, more than ever, a Fractional Chief Marketing Officer (CMO) can help.

A fractional CMO is an experienced marketing executive who works part-time with multiple clients. This arrangement has several strategic benefits that mitigate the risk and cost of hiring a full-time senior executive (and an entire in-house team under that executive) while providing strategic marketing expertise to drive growth:

Cost Savings

Hiring a full-time CMO can be expensive, especially for small and medium-sized businesses. A fractional CMO offers access to the expertise of a senior marketing executive without having the high cost (salary, benefits, recruiting and onboarding costs) of a full-time employee. Fractional CMOs typically work on a part-time or project basis, so clients only pay for the time they need. They also can bring outside resources and vendors to engagements, obviating the need to hire a full-time in-house marketing team.

Flexibility

A fractional CMO provides the flexibility to scale marketing efforts up or down as needed. Businesses that experience seasonal fluctuations in demand, or those that need to adjust their marketing strategy quickly can benefit from this added flexibility. Engagements can be short-term projects or long-term engagements, depending on the needs of the business. This flexibility also allows clients to adapt to changing market conditions.

Expertise

Besides previous in-house company experience, fractional CMOs have worked with multiple clients across various marketing initiatives and channels. They can bring a breadth and volume of marketing knowledge and expertise to the table that helps clients get better strategies faster, avoiding mistakes and pitfalls. They also have worked with a variety of specialists, agencies and employees at their clients (and/or from when they managed teams in-house). This combined management experience is invaluable to clients during the execution phase, adding a level of accountability and project management that delivers growth. 

Objectivity

A fractional CMO can provide an objective perspective on a client's marketing efforts that a full-time executive might take more time to–or be hesitant to– make. They can candidly identify areas for improvement and recommend changes that can help drive growth. More immune to company politics and unburdened by administrative tasks, fractional CMOs will help prioritize marketing activities and allocate resources more effectively. This objectivity can be particularly valuable for businesses that have been struggling to develop a successful marketing strategy, or who have felt burned by agencies or previous executives in the past.

Network

A good fractional CMO should have an extensive network of contacts within the marketing industry. They can leverage this network to help clients find the right vendors, agencies, and contractors to execute a marketing strategy. With knowledge of a client’s company culture and in-house employees working on their marketing projects, a fractional CMO can also recommend vendors who will work well with employees. Their network can also be valuable for clients looking to establish partnerships or collaborations with other companies in their industry.

Efficiency

Fractional CMOs are often highly experienced and specialized, allowing them to work more efficiently and effectively than a full-time employee. This efficiency can be particularly valuable in an uncertain economy when businesses need to maximize their resources. A fractional relationship eliminates a costly and lengthy recruiting and onboarding process, ensures the marketing investment is focused on the most critical parts of the business, and if it doesn’t work out, obviates the cost and drama often associated with off-boarding. 

Hiring a fractional CMO can offer businesses significant benefits, including cost savings, flexibility, expertise, objectivity, a valuable network, and efficiency. If your company is struggling to achieve its marketing objectives, a fractional CMO may be the solution you need. Particularly with increasing economic headwinds, a fractional CMO can offer higher ROI and less risk than a traditional in-house hire, while still delivering on growth.

TBDigital has completed numerous fractional CMO and head of growth projects for clients, and has a wealth of in-house experience and contacts that we leverage. Contact us to discuss how we can help.