“Marketing’s job is never done. It’s about perpetual motion. We must continue to innovate every day.”
Beth Comstock, Former CMO & Vice Chair, GE
A company’s decision to hire a fractional CMO vs. a full-time CMO will depend on many factors, including their goals, growth stage, and budget. In this blog post, we discuss the key differences between the two and provide insights to help businesses determine which option best aligns with their strategic goals and operational needs.
Before we start, you might be wondering: what does a CMO (Chief Marketing Officer) even do? Marketing (and business!) is constantly evolving, and in order for a company to grow and position itself in an ever-changing marketplace, a CMO is crucial. As the executive responsible for overseeing the planning, development, and execution of a company’s marketing and advertising initiatives, a CMO plays a pivotal role in shaping a company’s brand and driving its success.
However, not every organization has the resources to employ a full-time CMO. Enter the “fractional CMO”: a seasoned marketing leader who works on a part-time or contract basis, offering a flexible and cost-effective alternative to a traditional full-time hire.
Roles: Fractional CMO vs. Full-Time CMO
The role of a fractional CMO is similar to that of a full-time CMO. Here’s a look at what they do:
- Both are responsible for developing and executing a comprehensive marketing strategy that aligns with the company’s overall business goals
- They are both there to ensure that the company’s image and messaging are consistent and resonate with the target audience
- Both fractional CMOs and full-time CMOs need to understand and constantly analyze customer behaviour and market trends
- Most will work closely with other departments such as sales, product development, and customer service to ensure that marketing strategies are integrated across the company
- Both are responsible for contributing to the company’s revenue growth
The main difference between a fractional CMO and a full-time CMO is that a fractional CMO works on a part-time, contract, or project basis. They may divide their time between multiple clients and typically work a set number of hours per week or month.
So, how do you decide which one is right for your organization? There are several factors to consider.
1. Cost of a Fractional CMO vs. Full-Time CMO
Like any C-suite employee, a qualified full-time CMO’s salary tends to be around $150K. And of course, the salary alone doesn’t include all the other added costs you’re required to pay as an employer, such as benefits, payroll taxes, employment insurance, and more. Companies also need to factor in other expenses, such as office space and equipment, software licenses, and training.
In contrast, fractional CMOs can work remotely, using their own tools and resources. And, as the name suggests, hiring a fractional CMO often costs only a fraction of a full-time CMO’s salary, lowering the overall cost to a company.
2. Flexibility and Scalability
A full-time CMO’s salary is a fixed cost, leaving little room for flexibility during economic downturns and recessions. A fractional CMO, on the other hand, can offer greater flexibility by scaling their hours and involvement up or down based on the company’s needs. This flexibility makes it easier to adapt to changing business conditions or specific project requirements.
3. Expertise and Integration
A full-time CMO generally brings deep knowledge to the table from years of company and/or industry immersion. Meanwhile, a fractional CMO will usually be able to offer specialized expertise and a fresh perspective from working with multiple clients across various industries. Depending on the immediate needs of the company, a fractional CMO can also be brought in to address specific issues or provide strategic guidance very quickly, while a full-time CMO role may require a lengthy hiring and onboarding process.
4. Time and Availability
Full-time CMOs are solely dedicated to their employer and are generally available to address immediate needs and long-term strategies. Understandably, a fractional CMO must allocate their time across several different clients, potentially impacting availability. At Crisp, in order to ensure our clients are fully supported, we offer an entire fractional team to support the CMO with project management and execution and minimize interruptions.
5. Immersion in Company Culture
A full-time CMO tends to be deeply immersed in the company’s culture, operations, and long-term goals. This can lead to well-developed internal relationships and a clear understanding of the company’s unique challenges and opportunities. Although that level of engagement may be tougher to achieve with a fractional CMO, there are ways to ensure that the team can integrate seamlessly and align with the company’s business goals. Check out this blog post where we discuss how Crisp becomes a true extension of your team, offering genuine leadership, and working for your business, not just on your marketing.
Fractional CMO vs. Full-Time CMO: Which One Should You Choose?
The decision between hiring a fractional CMO vs. a full-time CMO ultimately hinges on your organization’s specific needs, budget, and strategic objectives. While a full-time CMO can provide dedicated, in-depth engagement and continuity, a fractional CMO offers flexibility, cost savings, and access to a broad range of expertise. Regardless of how you choose to hire one, the CMO’s role is pivotal in driving a company’s marketing efforts and achieving business goals.
By carefully evaluating the differences, and understanding the advantages and limitations of each option, businesses can make an informed decision that aligns with their needs. If you have any questions about what a fractional CMO can do for your business, book a free consult with our team.
