WHY CONSIDER ENGAGING A CMO ?
Definition: The simple definition is that, for most businesses, a Fractional CMO (Chief Marketing Officer) is the same as a Part-Time Marketing Director – and plays a strategic marketing role. Specific duties will be defined by each individual organisation, in the same way that other roles and functions are subtly different in different organisations. (I’ve reverted to ‘CMO’ throughout, this will equally apply to a strategic ‘Marketing Director’).
The Fractional CMO market is rapidly growing, driven by the need for flexible, high-level marketing expertise. In the UK, there are approximately 5.5. million SMEs and start-ups are increasingly turning to fractional resource due to cost constraints and the need for expertise without permanent commitment.
TRENDS IN THE MARKET
The rise in the gig economy and remote working has fuelled a rise in fractional roles. In an article in December 2024 SME Today notes an increase of 57% since 2020 in temporary business management roles in the UK.
Technologies, particularly the improving deployment of AI, are increasing marketing effectiveness and speed to market, with reduced resource.
Industries leveraging fractional CMOs particularly well include tech start-ups, healthcare, financial services, consumer goods, and SaaS businesses seeking immediate growth solutions without high turnover risks.
If you are considering engaging a CMO, part-time or otherwise, here are some facts and insights to help you evaluate.
COST EFFICIENCY
Fractional CMOs cost significantly less than full-time CMOs, whose annual salaries can range from £100,000-£175,000 in the UK, excluding employee benefits such as paid time off or health insurance. Fractional CMOs typically charge £700-£1,500 per day or £2,000 to £10,000 per month. Hiring a part-time CMO can save businesses 50-75% in costs compared to full-time hires.
Forbes reported that an experienced fractional CMO is an important factor in generating significant revenue growth. Let’s look deeper at the return on investment.
IMPACT ON ROI AND PRODUCTIVITY
The effectiveness of CMO’s in general has been debated but in 2015 a research team, led by Frank Germann, University of Notre Dame used rigorous econometric techniques to resolve the debate. The results were published in Harvard Business Review called ‘Do CMOs really add value?’ A couple of key conclusions were:
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- Companies with a CMO perform 15% better, on average, than companies without one.
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- Smaller companies which engage a CMO appear to benefit from increased impact. The team suggested this was because in a relatively small management team each member, including the CMO, have more influence over strategy and direction.
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- According to Harvard Business Review, companies engaging fractional CMOs report an average revenue growth of 29%, compared to 19% for those without.
SKILLS AND EXPERTISE
The skills and expertise you should look for in a Fractional CMO include:
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- Strategic Leadership: Marketing expertise in areas such as customer segmentation, brand positioning, market research and campaign optimisation should align with business goals.
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- Cross-functional Integration: Marketing should bridge gaps between sales, product teams, and operations – all critical for scaling businesses. Many companies struggle with cross-functional alignment, particularly sales-marketing alignment; fractional CMOs help resolve this issue.
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- Team Development: Fractional CMOs often mentor internal teams, fostering skill development and accountability while implementing best practices. They can also lay the groundwork for engaging a permanent CMO when the time is right.
FLEXIBILITY AND SCALABILITY
Businesses benefit from scalable support tailored to their growth stage. Fractional CMOs can be engaged for specific projects or short-term needs without long-term commitment.
Fractional CMOs may also flex their commitment; often more at the beginning of an engagement and reducing it as marketing implementors feel more confident and eventually handing over to a full-time CMO.
CONCLUSION
Fractional CMOs and part-time Marketing Directors offer unparalleled value by providing strategic expertise at reduced costs. Their ability to drive ROI, streamline operations, foster team development, and adapt flexibly to business needs makes them indispensable for SMEs and scale-ups aiming for sustainable growth.
For a free consultation with to evaluate options for your organisation, contact our CMO su@priddeymarketing.co.uk