The pandemic and slowing economy have sparked increased demand for outsourced marketing executives.
The pandemic has altered purchasing behaviors, supply chains, employment, and workforce practices. Online shopping is at an all time high, supply chains have significant shortages and delivery challenges. In addition, employers face a shortage of employees, while those working prefer to do so from home. Fueling a 15% boom in the “gig economy”, according to ADP Research Institute.
It seems as business is being attacked in every direction, facing unprecedented challenges that require innovative thinking and creative solutions. One such solution is outsourcing executive roles, such as Chief Marketing Officer (CMO) or Chief Financial Officer (CFO). The outsourced executives are coined Fractional Chief (insert function title here) Officers. The fractional CMO role has experienced a recent surge in demand.
A Fractional CMO is a highly experienced senior marketing executive offering their expertise on an outsourced, contractual basis for a finite period. This model provides a significant financial benefit by providing the same benefits as a full-time cmo without the additional cost and expenses of an employee.
The two most common engagements are:
Part-Time CMO – A set number or hours each week or month on a continual basis
Temporary CMO – A dedicated CMO that could engage full-time hours for a defined period or until an objective is reached.
Engagements are usually tailored to the needs of the clients, ranging from a few weeks to a few years. The average contract term is one-year, according to Ferris Ayar, founder and principal at Astute Group, a strategic marketing firm that provides fractional CMOs. Ayar explained that “Prior to the pandemic, our engagements were typically executed at the customer site, with time dedicated on either a weekly or monthly basis depending on location proximity”. However, post pandemic demand has shifted to remote or virtual engagements with dedicated time slots every week. Which I feel is a better fit for the strategic planning and management services we provide our clients.”
The increasing demand for Fractional CMO services has created great confusion about what exactly a Fractional CMO does and how they create value for their clients. The confusion is caused by a wide array of service providers who lack any experience as a senior marketing executive at a multi-million dollar business or large enterprise, claiming to be Fractional CMOs. The list of Fractional CMO “impostors”, as Ayar likes to call it, include college professors, advertising agencies, consultants, digital marketing firms, temporary employment agencies, and numerous other service providers jumping on the Fractional CMO band wagon.
The problem is that these impostors cost their clients in one of two ways:
Underperforming Strategies – A strategy that generates 15% growth is a win, unless you realize the opportunity for 35% growth exists.
Overpriced Services – A Fractional CMO charges rates that are at a minimum two to three times as much as service providers that conduct day to day marketing activities such as posting on social media, or creating content.
A Chief Marketing Officer is the most senior marketing executive in a company. Senior executives are there to guide the company with strategies and leadership in their respective field of expertise. Today, a Chief Marketing Officer CMO is expected to develop and implement strategies that increase sales and generate revenue growth.
A Fractional CMO should have the same responsibilities and objectives, with the difference being that they are not a direct employee of the company and work less hours. The Fractional CMO must focus heavily on performance-based marketing to drive sales growth.
In actuality, the CMO is a prime example of the 80/20 rule. They generate roughly 80% of the results in marketing, while only needing approximately 20% of the time.CMOs provide the greatest value by –
– Providing a new perspective from an unbiased expert
– Gaining deep insight coupled with extensive experience and business acumenDeveloping and implementing marketing strategies, proven tactics, and analytical reporting
– Managing, training, or developing best in class tools, best practices, and talented personnel or contractors
– To generate reliable growth and optimize Marketing ROI.
The demand for Fractional CMOs is expected to rise as executives seek to reduce costs and commitments in anticipation of a economic downturn. This in turn will attract more and more service providers that lack actual marketing executive experience to promote themselves as Fractional CMOs. Executives need to exercise due diligence and research the service providers actual work experience, accomplishments, education, and referrals.
About Astute Group
Astute Group provides Fractional CMOs and Marketing Coaches with strategic marketing expertise to eliminate one of the greatest challenges CEOs face, generating revenue growth. Astute Fractional CMOs free CEOs from the burden of leading marketing and driving growth by providing the strategic planning, executive leadership, and unparalleled marketing expertise on an as needed basis. We help business Realize Full Potential and verify it with two KPIs that sum up the financial impact of our services, Revenue Growth Rate (RGR) and Return on Marketing Investment (RoMI).
Company Name: Astute Group Fractional CMOs – Strategic Marketing Experts
Email: Send Email
Address:6421 N Florida Ave, Suite D-400
State: Florida 33604
Country: United States