Stop the CMO Revolving Door and Drive Growth with a Fractional Leader

This article is written by Holliday Woodard and is cross published from Sage Strategy Group 's Website.

CMO tenure has been dropping. Depending on your data source, tenure is 12-18 months at early-stage and high-growth companies and up to 30-36 months at later-stage companies. Large public companies have the highest tenure at 48 months or more. CMOs still have the shortest tenure in the C-suite. This is likely driven by the fact that CMOs are the leaders who translate company strategy into action. They are the place where theory becomes a reality, and the path to revenue is created.

Because of the short tenure of CMOs, many wonder if CEOs are simply not good at hiring them. While this may be true for many, an equally likely cause is a lack of match between the evolving company strategy and the CMO’s primary area of expertise. If your company’s strategy changes quickly, then what you need from your CMO will change quickly, too.

Many companies are turning to fractional executives, including fractional chief marketing officers, to manage the fluidity of the business landscape, shifting customer preferences, and the resulting business strategy changes. Let’s explore this idea in more detail.

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What is a Fractional Chief Marketing Officer?

A fractional chief marketing officer (FCMO) is a hands-on position for an experienced marketing leader – hired on a part-time basis. Established as a freelancer, a fractional CMO is usually hired for five to six months, depending on the specific project. They primarily assist in strategic planning, marketing strategy development, and content creation, according to a survey done by Duct Tape Marketing. This role brings the expertise of a high-level professional without the commitment and cost of hiring a full-time position.

The development of an FCMO is fairly new, but the adoption of the position is increasing.? The use of FCMOs has increased by over 60% in the past five years, according to a survey done by Chief Outsiders. This position is more than just a person outsourcing information to an agency but rather exposes the FCMO to the underbelly of the company. An FCMO is responsible for creating connections within the business and interacting with the team on a personal level to create the best output.

How do Fractional CMOs work within companies?

An FCMO provides a new outlook for a company, a change of direction. Many look for this in the early stages of building a company or in struggling companies needing a change. However, FCMOs are useful in thriving companies as well. Those experiencing rapid growth may need direction and leadership quickly. An introduction of a new product or expansion of business may call for an FCMO. A fractional CMO is useful in any company; however, they most frequently work with clients in Software or Technology (65.3%) and Professional Services (55.3%), according to a study done by Duct Tape Marketing.?

The position is adaptable for each company. A fractional CMO works under different titles depending on the project and business, however all responsibilities are marketing-specific. The roles can consist of head of sales and marketing, business development lead, or communications officer. In charge of bringing the overall direction and mission for the company to market, an FCMO governs the positions under them in the marketing department. They most commonly work with a ‘full stack’ marketing team of PR, demand generation, product/service marketing, customer marketing, digital/performance marketing, and more. Their team is usually a mix of employees, contractors, and agencies or vendors.

How does a company benefit from a fractional CMO??

A fractional CMO offers an economical solution for many companies, most of which are start-ups or small businesses. In addition to providing affordable aid to a company's marketing strategies, the impact of an FCMO is also direct and immediate. It has led to a noticeable growth in earnings and increased brand awareness in many companies. “An experienced CMO generated a 5% growth rate resulting in $1 million in additional revenue. Fees and expenses totaled $145,000, resulting in an $855,000 net revenue increase,” according to Forbes. ???

An FCMOs lack of history within a company can be helpful as well. Being able to devise a plan for a company that is strictly derived from data, past successes, and failures keeps the FCMO objective and effective. Bringing in an FCMO is similar to bringing in an outside opinion, one that exposes new insights and is responsive to the ever-changing market. It is an adaptable position that has its finger on the pulse of the industry, keeping companies informed about rising trends and biases.?

Why should you hire a fractional CMO??

Each company should make the decision to hire an FCMO within its own means, but the effects have undeniably been proven to be substantial. According to a survey done by the CMO Club, 82% of executives believe that a fractional CMO is helpful in adapting their marketing strategies to market shifts and trends. To summarize, the broad experience of an FCMO and flexibility around the position, including costs and speed to execution, make them a welcome addition to many companies.?

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