Earlier this week, we looked at the role of the fractional CMO (FMCO), which is making a name for itself in the marketing industry. The term is similar to titles such as marketing consultant and on-demand CMO, and the market seems to be divided on its benefits and pitfalls.
Some say the rise of fractional CMOs is indicative of the complexity and diversity of modern marketing and business practices. Today, more and more organizations are turning to flexible solutions that can quickly adapt to meet the rapidly evolving nature of a digital-first world.
Keith Wong, country director for Hong Kong, Shanghai and Singapore at HR and recruitment firm Lynx International, says the fractional model is not just limited to marketing departments; finance and legal teams can also use such structures. is being introduced.
Don't miss: Is fractional CMO the latest fad in the marketing industry?
He said the benefits of this structure include being able to hire experienced candidates without committing to a full-time salary and attracting professionals from other industries to bring fresh ideas. He added that it could be mentioned.
“From a candidate’s perspective, it gives them more opportunities to work on different projects without having to take on a full-time job, which improves their work-life balance. It also gives them an understanding of different business models in different industries. ,” Wong said.
But while the jury is out on the longevity of the latest model in town and the value it brings to an organization's food chain, most CMOs MARKETING-INTERACTIVE spoke to are Not moving. The majority also agree that this role is more suitable for small businesses than for large organizations or multinationals.
Alvin Neo, chief customer and marketing officer at NTUC Enterprise, said the overall trend towards fragmentation of the CMO role means that traditional full-time employment is not necessarily the most practical or cost-effective solution for any business. This reflects a growing recognition that this may not be the case.
“Depending on the size and life stage of the company, we provide expertise, flexibility and strategic guidance on a part-time basis in specific areas where the company determines it needs support while controlling overall labor costs.” “There are companies that rely on fractional CMOs to get the job done,” he said.
That said, Temus director Marcus Loh added that the beneficiaries are small and medium-sized enterprises (SMEs) with tight budgets but with big dreams. This model provides a middle path for many small businesses to better leverage their marketing and figure out what they need without taking the plunge and taking on full-time employment.
For small businesses, this CMO on-call model provides a “golden ticket” that opens the door to proven marketing tools and connections without breaking the bank.
“These FCMOs help small businesses navigate the complex world of marketing, from choosing the right stack to choosing the right agency partner for expert advice and project management to bringing campaigns to life. “It will help,” he added.
Bassam Abdelrahman, chief marketing officer (CMO) of Zenyum, agrees, saying that this model is most attractive for companies between seed and Series B funding, including their CEOs, CFOs, and CPOs. “We lack marketers who can help unlock the next stage,” he said. However, you may not be able to afford to hire a full-time CMO for him. ”
“From Series C onwards, we recommend having a full-time CMO or VP of Marketing who can manage marketing budget allocation and ROAS,” he said.
Incidentally, he added that fractional engagement might be a cool way to try it early in your corporate life before going full-time later.
Additionally, if scoped correctly, a fractional CMO can provide an in-house CMO with some much-needed extra brains and new eyes.
“They can dig deep into the data (without traditional assumptions and biases) to fully understand the problem, extract insights, and develop creative, data-backed solutions. “Flexibility means that even companies lacking senior marketing strategy resources can engage with a fractional CMO for whatever length of time they need,” he said.
Are you serious about customer-centric growth?
Industry participants MARKETING-INTERACTIVE spoke to said that given the temporary nature of CMOs, they may not be able to delve as deeply into data analysis and integration as permanent CMOs. Moreover, because FCMOs have more divided attention, they may simply have less permanent responsibility to the organization than FCMOs, industry insiders argue.
“CEOs who are serious about customer-centric growth in the current fiscal year and beyond need someone who can identify and connect the dots between gaps and opportunities both internally and externally.” Co-founder of R3 Mr. Goh Shufeng, the manager and principal, argued. She added that in today's competitive world, every organization needs people who can see problems from the customer's perspective, and that's the CMO's job.
If a company is serious about marketing as a growth driver, the chief marketing officer role cannot be a part-time position.
“Let's not overlook the importance of the CMO's role in driving business growth,” said Abdul Sani, CMO, RHB Bank. “Without growth, there is no business outlook. So why not invest in a permanent CMO, similar to the essential role of a CFO? It is essential for companies to carefully assess their priorities.” ” he said.
Fractional CMOs offer a new approach to accessing top marketing talent, but Sani says it's important to weigh the benefits against the potential challenges and ensure alignment with the company's strategic goals. claimed to be.
The need for integration and accountability
Meanwhile, Domino's Pizza Malaysia and Singapore group chief marketing officer Linda Hassan said the long-term brand impact was also an important consideration. The CMO's decisions often shape the brand. Today's effective CMOs have the right amount of influence over key aspects of the business.
“The wrong actions can have short-term positive effects and long-term negative effects, such as reduced customer frequency, which can occur as a result of fractional CMOs,” she says. added.
Hassan added that large companies and brands also typically demand undivided attention and unwavering focus. As such, fractional CMOs, who often juggle multiple clients simultaneously, can struggle to provide the level of availability and attention needed to meet their specific needs.
“It's important to carefully evaluate these factors to make informed decisions that align with your brand's goals and objectives,” she added.
NTUC Enterprice's Neo added that unlike full-time employees, fractional CMOs may not have the same level of long-term commitment or investment in the company's success. This can impact their motivation and willingness to go above and beyond for the organization.
Another key challenge lies in knowledge transfer and continuity, especially if you have only been working for a company for a limited period of time. This can lead to a loss of organizational knowledge and hinder long-term marketing strategy and execution.
He said, “Given their temporary nature, fractional CMOs can struggle to fully integrate into a company's culture and processes, creating challenges in aligning with other departments and stakeholders, and marketing “This could affect the effectiveness of the activity.”
He added that communicating with fractional CMOs is often more difficult, especially if they are not physically present in the office on a regular basis. This can lead to misunderstandings, delays, and inefficiencies in decision-making and collaboration.
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