The workplace is going through a massive shift in organizational structure.
New remote or partially-remote policies, in combination with the creator or freelance economy, open the door for organizations to have flexibility around who they work with, for how long, and at what capacity. It gives organizations the freedom to hire specialists for certain functions, or outsource departments entirely if it makes sense.
We’re used to seeing this trend happen at lower-level positions within an organization — web developers, digital marketers, financial consultants. However, this trend is expanding beyond specific skilled roles to executive teams, too — specifically Chief Marketing Officers (CMOs).
But why now?
In the 1960s and 70s, executive teams were primarily composed of a CEO, with the COO as the right hand. In the 80s and into the 90s, we started to see CFOs take on a more influential role on executive teams, essentially taking over the number two spot from COOs. With the introduction of CMOs in the late 80s and 90s, and the colossal expansion of marketing avenues due to the digital revolution, CMOs have taken on a vital role in most organizations.
The role of CMO has been around long enough now for there to be experts — not only experts from the position of an executive marketer, but marketing executives who are experts in specific niches. And with massive organizational change happening across industries, expert marketers are starting to market themselves as “fractional” CMOs.
A fractional CMO is a contract chief marketing officer, retained on a part-time basis to provide executive marketing leadership for a growing business.
As an executive, fractional CMOs are members of an organization's executive team, and serve as the executive leadership for the marketing function of a business.
However, fractional CMOs are not merely ad experts or social media gurus advising from a high-level. Fractional CMOs hold the crucial responsibility of translating the vision of an organization’s CEO and Board into marketing campaigns, objectives, and outcomes. Fractional CMOs work with existing teams, and expand or cut teams where needed.
There are a number of benefits for organizations who work with fractional CMOs including cost, efficiency, and unparalleled industry expertise, among others. Here are the benefits of working with a fractional CMO:
#1 — Fractional CMOs can save your organization money.
Hiring a fractional CMO is the best way to add executive-level marketing leadership to a team without adding the full cost of employment and benefits to payroll.
The average CMO makes roughly $212K annually, plus benefits. And as important as a CMO is, your organization may not need one full time.
A fractional CMO might only participate a handful of hours per week or month — which is all your company might actually need. In many scenarios, fractional CMOs have a high ramp-up to develop and set a strategy into motion, scaling back involvement over time.
Fractional CMOs can prove to be a much better investment long-term, and can allow your organization the opportunity to allocate important resources elsewhere.
#2 — Fractional CMOs are ultra-efficient.
Most CMOs working in a fractional capacity stick to one vertical, which is beneficial for a variety of reasons.
For one, fractional CMOs who stick to one industry are more likely to be familiar with the primary marketing technologies in your industry. They can focus on a similar strategy across organizations, using experience gained at other companies to the benefit of your organization. A fractional CMO is also more likely to have an understanding of the most efficient team structure for organizational success.
Fractional CMOs are incentivized to niche-down, which ultimately benefits all parties through hyper-efficiency.
#3 — Fractional CMOs are low-risk, high reward.
According to a study titled “Why CMOs Never Last” by Kimberly A. Whitler and Neil A. Morgan at HBR, over 80% of CEOs are dissatisfied with their CMO. The same study highlighted that, of all executive positions, CMOs have the highest turnover rate — only lasting about 25 months at an organization before walking away or being fired.
Needless to say, hiring a full-time CMO can be risky. With a fractional CMO, however, companies are still able to get executive level experience and strategy without committing to any one person full-time.
Hiring a fractional CMO is a great way for companies to test the waters, without overcommitting to any one person. A fractional CMO is still responsible for understanding marketing functions of your business, and industry. Fractional CMOs will evaluate your current situation, implement new technology if necessary, help with the hiring and/or firing process if necessary, and more.
Another great benefit of fractional CMOs, is that you can ramp up or scale back the volume of work from that individual based on needs. Since fractional CMOs are on contract, you have much more flexibility as an organization. Most fractional CMOs start out in an advisory role, and might engage for the first few months to get your marketing team on the right track. Some companies choose to continue working with fractional CMOs in a relationship where the fractional CMO is engaged on a daily basis. Either way, hiring a fractional CMO on contract is less risky than putting in the effort to hire someone full-time with the likelihood they won’t pan out after a year or two.
With massive shifts in workplace culture, and the ever-growing list of marketing functions, the time is ripe for organizations to consider fractional CMOs. Considering there are more experienced executive marketers offering their services on a contract basis, organizations should think twice about how necessary it is to hire a CMO full-time.