The concept of mid-sized firms hiring a fractional executive is not new. For many years, mid-size companies looking for an affordable solution for executive level talent have, for example, turned to a Fractional or Virtual Chief Financial Officer (CFO) in situations where a full time CFO would not be financially or practically feasible.
In recent years, fractional marketing leadership has grown much more popular as mid-sized firms look to realize the benefits of working with an experienced marketing leader without the price tag of a full-time Chief Marketing Officer (CMO).
“Companies in need of new marketing leadership are increasingly turning to interim, or fractional, chief marketing officers to drive growth.”
Put simply, a Fractional CMO is a part-time Chief Marketing Officer often contracted to bring strategy, structure, and leadership to the marketing function. Though the specific scope of work for a Fractional CMO differs by the individual, hiring firm, and specific engagement, the role is broadly contracted to:
· Develop and manage the firm’s overall brand and marketing strategy.
· Manage and mentor the in-house marketing department.
· Oversee the relationship and work of any outside agencies.
· Align execution with strategy and manage branding efforts, campaign launches, and demand generation programs.
· Develop and drive marketing metrics and support sales growth.
Mid-sized firms benefit from a Fractional CMO relationship in that, without the cost, commitment, and the time needed to search for a full-time CMO or VP of Marketing, they can quickly bring on an executive-level marketing professional with experience in their industry that can hit the ground running and bring strategic direction to the marketing function. Many Fractional CMOs bring with them not only deep marketing and industry experience, but best practices they can share with your in-house marketing team, and relationships with marketing specialists – like graphic designers, web developers, and SEO experts – that can fill in any gaps in marketing programs.
Many companies look to Fractional CMOs when they are unsure how to support a new strategic direction, recognize their marketing practices are inconsistent and lack focus, or are making their initial foray into a more strategic and comprehensive approach to marketing.
While this model may not be widely utilized in the AEC space, it appears a fractional marketing leadership model could be the perfect solution for middle market AEC firms looking to up their marketing game in the constantly changing digital marketing environment.
Here’s why.
1. AEC Marketing Has Grown More Complex and Requires Experienced, Focused, Senior Marketing Leadership
For progressive middle-market AEC firms, long gone are the days when leading the marketing department meant overseeing proposals, events, and developing collateral materials.
While those elements remain part of the marketing mix, AEC industry marketing, like all B2B marketing, has expanded significantly, and become more complex. To be effective in this highly competitive and ever-changing marketplace, an AEC marketing leader now also needs to be well versed in market research, brand positioning, brand identity, messaging strategy and content development, SEO, website development, video production, thought leadership, social strategy, demand generation, digital marketing metrics, and in many cases, employer branding, and internal communications as well.
“Marketing and media management is increasingly complicated…Many mid-sized companies are unable to afford a CMO, which has led to the newer model of a fractional CMO.”
AEC marketing leaders are also responsible for mentoring marketing team members whose roles are constantly expanding and changing with the growth in new marketing technologies and techniques. In addition, they often oversee the work of outside marketing agencies. For firms that do not have the resources or scope for full-time executive marketing leadership, a Fractional CMO who’s experience spans a range of marketing disciplines, and includes building marketing teams and overseeing outside agencies, can help take an AEC firm's brand and marketing to the next level.
2. A Fractional CMO is a Cost-Effective Solution for Middle Market Firms
The costs associated with marketing personnel fall in the overhead category on AEC budgets. And as many of us know, budgets, particularly overhead budgets, get a lot of scrutiny at AEC firms, from the company’s executives and investors. A Fractional CMO can deliver executive-level experience at a fraction of a full-time executive salary, with no benefits to be paid (generally about 35% of salary), and without incurring the recruitment costs (about 20 – 25% of salary) associated with securing full-time executive or senior-level marketing personnel.
Middle market AEC firms that are focusing on a companywide marketing strategy for the first time may also be unsure of the long-term financial commitment they want to make to a full-time marketing executive. A Fractional CMO can bring experienced focus to the firm’s immediate marketing needs with the ability to scale any longer-term marketing support needed to meet the client’s requirements.
3. AEC Firms Need Strong, Strategic Marketing Programs to Remain Competitive
The largest AEC firms make significant investments in marketing personnel to distinguish and differentiate their brands, elevate the perception of expertise in their service areas and markets, and provide their business development and sales teams with the tools and resources to move prospects through the pipeline. This includes marketing personnel supporting different business units, corporate brand marketing, and sales enablement.
Savvy mid-sized AEC firms are effectively deploying the same marketing techniques used by their larger AEC industry brethren, just at a different scale.
While middle-market firms have nowhere near the resources of these larger firms, they often find themselves on the same playing field or competing for the same clients. Savvy mid-sized AEC firms are effectively deploying the same marketing techniques used by their larger AEC industry brethren, just at a different scale. Fast growth middle market firms are focusing content on their brand differentiators, and using marketing metrics and KPIs to optimize web, social, and event marketing results. They are becoming sophisticated in the use of SEO to drive traffic and build website authority, are building thought leadership programs that heighten perception of their firm’s expertise, and are attracting new prospects by creating and promoting content on the most important issues their clients are facing.
If your firm is not deploying the marketing strategies and techniques used by industry leaders, and savvy, fast growth mid-sized firms, you may be falling behind your peers and competitors.
The AEC industry is highly competitive, and AEC marketing, like all B2B marketing, has grown more complex with what seems like ever changing new technologies and techniques. If your firm is entering a new stage of growth, or you believe your marketing lacks strategic direction, a Fractional CMO might be the right solution to bring experienced oversight quickly and cost-effectively to your marketing efforts.
Michael Racis is a Fractional CMO, and Founder of Blueprint CMO + Strategic Brand Advisors, LLC. He has developed brand strategy, positioning, messaging, and marketing plans for fast growth middle market AEC firms, the nation’s largest electric cooperative, and leading global brands like J.P. Morgan, Chase Bank, and Evian. Learn more at blueprintadv.com or contact Michael at michael@blueprintadv.com.
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