A fractional CMO (CMOx or FCMO for short) is a highly experienced, equipped and capable CMO who works with companies for a set period of time on a recurring basis, usually several hours a month. FCMOs are tied to a contract and provide a finite and measurable amount of value for a company. They are responsible for controlling the direction of the entire marketing organization, having an idea of the company's ideal place in the market and how to achieve it, also known as strategic vision. Organizations that are looking to grow their business but don't have the resources to hire a full-time CMO can benefit from hiring a fractional CMO.
A fractional marketing director is essentially an outsourced high-level executive. These professionals perform the basic functions of a CMO, but allow your company to avoid committing to a full-time executive. Fractional CMOs must understand the attractiveness and cost-effectiveness of different products and services. They must understand the entire sales sequence and how sales occur, as well as focus on conversion rates and macroeconomic problems faced by marketing, including positioning authority. The convergence of two trends - the value of fractional leadership and the availability of more marketing executives to fill fractional positions - means that the market for fractional CMOs is growing rapidly.
Without experienced marketing leadership, growing companies sometimes struggle to answer four questions: What is our ideal place in the market? How do we get there? What products or services should we offer? How do we differentiate ourselves from our competitors? Organized fractional CMO companies such as Authentic Brand employ a team of consultants who are examined as true executives and work as integrated leaders in the executive team of their clients. As a result, the fractional salaries of CMOs represent only a fraction of the cost of marketing director salaries. The third category of fractional CMOs is very similar to the first, except that independent fractional CMOs work as a collective under a unified brand using a licensing or franchise model. Fractional CMOs allow companies to experiment and differentiate their long-term and short-term strategic needs at a fraction of the cost. A fractional CMO should be hired when a company cannot afford a full-time CMO or execute the marketing campaigns that the CMO identifies, or simply does not need a CMO due to the relative simplicity of the company's marketing.
A fractional CMO performs the same general tasks as a full-time but part-time marketing director. A fractional CMO is an excellent solution for organizations that need experienced strategic marketing guidance, but that aren't yet ready to fund the hiring of a full-time CMO. It aims to be a place where fractional CMOs or marketers who are considering becoming fractional CMOs can connect and share ideas. A good fractional CMO is one that is process-based, that has a history of helping companies of a similar size to grow or offering to their own. A fractional CMO is like an independent or part-time CMO, especially in interim positions while the company prepares a permanent position. As Form W-2 employees, the team members of a fractional CMO organization are deeply committed to providing consistent, high-level services and to collaborating with their colleagues.
