CEO and cofounder, Card Shop Live.
Navigating marketing demands and strategy is tough for any organization but is particularly difficult for startups or companies facing budget constrictions. This is why fractional chief marketing officers (fCMOs) have become an attractive team addition in recent years. But how do you know if an fCMO is the right fit for your organization and goals or if a marketing director or agency would be a better fit?
It comes down to an organization’s direct need for strategy or execution and the total annual budget. An fCMO—sometimes called a part-time or interim CMO—is a marketing executive who works with businesses on a part-time or project basis rather than being a full-time employee. An fCMO provides strategic guidance with high-level expertise and management skills and is key for organizations looking to launch, rebrand or execute growth strategies. From a tactical standpoint, no matter the size of the company, an fCMO should be focused on strategy and designing systems that maximize outputs and impact while aligning with an organization’s budget.
The rise of the fractional CMO is a testament to the rapidly evolving marketing ecosystems. In order to scale, brands need constantly changing strategies based on trends, platforms and emerging technology. Even though marketing budgets are tightening, organizations still need marketing expertise to scale.
This arrangement can be favorable to organizations for many reasons, including the following.
1. It can be cost-effective because the business only pays for the CMO’s services when it needs them rather than paying a full-time salary and benefits package.
2. fCMOs offer businesses more flexibility than hiring a full-time CMO. Businesses can hire an fCMO for a specific project or period of time and then end the engagement when the work is complete.
3. fCMOs bring a wealth of expertise and experience to businesses, as they’ve often worked with a range of different companies and industries.
Yet, the key factor to hiring a fractional team member versus a marketing director comes down to department staffing and execution needs. Does your organization need oversight of high-level processes or a person/team to realize the concepts designed by leadership? If you answered the latter, then a marketing director or agency would be a good fit.
Marketing directors or marketing specialists can be extremely helpful to organizations that are laser-focused on specific channels once the overall strategy has been identified. Marketing directors and agencies are tactical in nature. They plan and execute campaigns and work to achieve KPIs that elevate the strategic vision of the company.
Major operational and outcome problems can happen if marketing roles and expectations are misaligned. This is especially true when planning and allocating a marketing budget. Overpaying an fCMO to execute aspects of marketing is wasting money that could go directly into campaigns. Conversely, jumping into specific marketing funnels and campaigns without a cohesive brand strategy wastes precious financial resources with no KPIs to measure long-term success.
So, how can you choose the right fit for your organization? Here are three questions to ask when deciding how to best build your team and address marketing goals.
1. Does your organization have a clear brand and marketing strategy, with the go-to-market and scalability goals identified?
2. Does your organization need assistance executing marketing tactics, such as emails or paid advertising campaigns?
3. What are your immediate goals? Are you launching a product, rebranding, scaling or looking to build customer acquisition?
By evaluating your organization’s need for strategy, execution or a combination of both, any organization—from startups to major corporations—can navigate the demands of the rapidly changing marketing ecosystem. By effectively choosing the right team members, organizations can hit key marketing goals in a cost-effective way.
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