Now that Zoom conference calls are the new norm (gee thanks, COVID), there has been a significant rise in the number of SaaS companies that are turning to Fractional CMOs to build and lead a go-to-market strategy to achieve its goals.
As the tech sector is looking to reduce expenses without sacrificing performance, the trend of SaaS companies opting for a Fractional CMO over a traditional CMO is continuing to rise.
SaaS Companies Are Overpaying Their Full-Time CMO
Full-time, traditional CMOs in SaaS expect a salary of $275,000+ a year combined with 3 or 4 weeks of paid time off, health benefits, and other perks to keep them loyal.
In a time where the tech industry is showing signs of instability, board members look for more ways to cut budget without shrinking their sales pipe line. Often times, the budget cuts include eliminations of certain roles spanning multiple departments but it also will question if salaries of upper management are inflated.
Why are SaaS Companies Hiring Fractional CMOs?
Don’t let the title fool you. Paying a “fraction” of the cost of a CMO rather than hiring a full-time CMO does not mean you are hiring someone with less experience.
Fractional CMOs are highly skilled marketing veterans who bring a wealth of expertise to the table. Their leadership and marketing acumen enable SaaS companies to leverage their past experience and knowledge to develop and execute an effective GTM strategy.
Sheila Kloefkorn, founder of KEO Marketing says, “Digital marketing is more complicated every day, and it’s often difficult for an organization’s in-house marketers to be experts in all aspects of marketing. That’s where a Fractional CMO comes in to act as an extension of a company’s team, augmenting the skills and expertise of their in-house talent. A part-time CMO or Vice President of Marketing can give you the expertise and strategy of a full-time Chief Marketing Officer without the full-time cost.”
Fractional CMO Advantages
When you hire a Fractional CMO to lead your marketing department, you’ll observe several advantages over a full-time CMO. SaaS Fractional CMOs have worked with several other SaaS companies and have seen the ups and downs and have the battle scars to prove it. They have worked with various industries and have a deep understanding of what it takes to develop and execute a successful marketing strategy.
This new set of eyes can offer insights and ideas that may not have been considered before. This level of creativity and innovation can be invaluable for SaaS companies that are looking to stand out in a crowded market.
They’ll also have a fresh perspective on how to reduce the likelihood of your company falling victim to mismanagement of marketing campaigns or over-spending ad budget that result in few qualified leads.
This level of expertise is particularly valuable for SaaS companies who have a few marketing resources but lack the right leadership and framework to ensure their efforts are positively impacting the bottom line.
Fractional CMOs are fluid and can quickly adapt to the needs of the business. They can work on a project-by-project basis (typically 3-6 months), providing support for specific campaigns or initiatives. Or they can work on a longer-term basis, helping you ensure the GTM strategy stays on course and you’re seeing a stronger return.
This level of flexibility allows SaaS companies to access the expertise they need when they need it most, without having to over-commit to a long-term engagement.
The SaaS Fractional CMO – No Longer “Just a Trend”
You operate in a highly competitive market where your competitor is one click away. Your SaaS must have a clear yet solid go-to-market (GTM) strategy that will cut through the noise in the marketplace.
CEOs who are trying to wear the CMO “hat” are burning out and rely on somebody who can take that role off of their plate. More SaaS companies are starting to recognize the value a part-time CMO can bring to the table.
According to a report by Chief Outsiders, more than 80% of CEOs believe that a Fractional CMO can add value to their business. Their survey results also revealed that more than 60% of CEOs would consider hiring a Fractional CMO in the future.
Early-Stage and PMF SaaS Companies Hire Fractional CMOs
Founders and CEOs from both early-stage and product-market fit (PMF) SaaS companies are warming up to the idea of putting a Fractional CMO in charge of stronger lead generation.
For early-stage companies, a Fractional CMO can help them to establish a strong brand identity and positioning that will enable them to stand out in a crowded market. The Fractional CMO can help the company develop a comprehensive GTM strategy that includes messaging, positioning, and targeting, as well as branding, website design, and content creation. They will also help you recruit and hire top marketing talent, the “A players” who have a passion for delivering strong results and the aptitude to deliver successful campaigns.
If you have established product market fit, a Fractional CMO can help provide valuable insights into the market and refine your messaging, positioning, and targeting to expand your reach of ideal customers. The Fractional CMO can work with your existing team, identify gaps and breathe new life into campaigns. They’ll work closely with your resources to build and optimize campaigns across multiple channels including paid advertising, B2B software directories (e.g. Capterra, G2), social media, email marketing, and account based marketing (ABM).
Is Hiring a Fractional CMO the Right Move for Your SaaS?
More SaaS CEOs are turning to Fractional CMOs after realizing how much value they can quickly add.
Working with a Fractional CMO provides several advantages over hiring a full-time CMO, including cost-effectiveness, flexibility, and offering a fresh perspective and framework that will lead to a stronger pipeline.
If you’re serious about building more awareness of your SaaS that will lead to more demos, schedule a brief call with the B2B SaaS CMO.
