Today, having a sharp marketing mind is more important than ever. But finding the right person to lead your marketing team can be a big challenge, especially for SMBs where hiring a full-time chief marketing officer (CMO) might be too expensive. However, bringing in an outsourced CMO can solve this problem.
In this guide, we’ll see what an outsourced CMO is and how it can help your business. We’ll also analyze the top 5 companies for hiring them and share tips on how to integrate this new leadership into your workflow.
What Is an Outsourced CMO?
An outsourced CMO is a marketing executive who works for your company on a part-time or contract basis. They bring the same expertise and strategic vision as a full-time CMO but at a fraction of the cost, saving your business 30-50% compared to hiring a full-time executive.
With an outsourced CMO, you gain access to top-tier marketing skills and leadership. They assess your current marketing efforts, identify areas for improvement, and implement effective strategies. This way, you can focus on other important aspects of your business while knowing your marketing is in capable hands.
8 Core Benefits Of Hiring An Outsourced CMO
Hiring an outsourced CMO offers many advantages for your business. Here are some of the benefits you get to enjoy:
1. Saves On Cost
Outsourcing your CMO role can significantly reduce costs. You save on salary, benefits, and other expenses associated with a full-time executive. You also avoid the cost of recruitment and training. With an outsourced CMO, you only pay for the services you need, whether it’s on an hourly basis or a project basis.
An outsourced CMO also brings a wealth of experience. They can quickly identify cost-saving opportunities and optimize your marketing spend. You can leverage their expertise and achieve better results without straining your financial resources.
2. Brings Expert Knowledge
When you outsource your CMO role, you get top-tier expertise tailored to your business needs. If you run a tech startup, you need to hire an outsourced CMO with experience in the tech industry.
Their experience will come in handy, as they can implement successful growth hacking strategies they’ve used before. This expertise helps you avoid common pitfalls and implement effective marketing tactics.
3. Offers Flexibility
An outsourced CMO presents a flow in how you manage your marketing needs. You can scale their involvement up or down based on your business requirements. This adaptability ensures you get the right level of support without the commitment of a full-time executive.
You also benefit from their ability to work on specific projects or ongoing strategies. This flexibility lets you address urgent needs or long-term goals effectively.
4. Provides a Fresh View
An outsourced CMO brings a fresh perspective to your marketing efforts. Companies that hire for strategic positions like this see a 20% revenue increase. They can identify opportunities and challenges that your in-house team might overlook.
Their unbiased approach helps them evaluate your current marketing strategies objectively. Based on their diverse experience, they can suggest improvements and new tactics.
5. Gives Access to a Network
Hiring an outsourced CMO gives you access to a valuable network of industry contacts. They will connect you with top vendors, media, and influencers who can boost your marketing efforts. These relationships open new opportunities and enhance your campaigns.
Their established network provides beneficial partnerships and collaborations. You’ll see better deals, increased visibility, and more effective marketing. This broad network helps you achieve your marketing goals faster than you think.
6. Allows Focus on Core Work
Outsourcing your CMO role lets you concentrate on your core business activities. Instead of juggling marketing strategies, you can focus on product development, customer service, or other critical areas.
Delegating marketing responsibilities to an expert ensures that your strategies are handled professionally. You get peace of mind knowing that a professional is managing your marketing efforts. This setup lets your team perform at its best without the distraction of complex marketing tasks.
7. Offers Strategic Advice
An outsourced CMO gives you the necessary guidance to scale your business goals. For example, if you aim to increase online sales, they can develop a comprehensive marketing strategy that includes targeted email campaigns and SEO optimization.
An outsourced CMO strategic insight helps you tackle complex marketing challenges with confidence. They can identify emerging trends in your industry, like the rise of influencer marketing, and help you leverage these opportunities.
They set priorities, like focusing on high-impact marketing channels, and allocate resources efficiently for the best return on investment.
8. Reduces Risk
Outsourcing your CMO role can lower your business risks. An experienced CMO helps you avoid costly mistakes in your marketing strategies. Their expertise guarantees your campaigns are well-planned and executed and reduces the chances of failure.
They also stay updated on the latest industry trends and regulations. This knowledge helps you comply with legal requirements and adapt to market changes. With an outsourced CMO, your marketing efforts are both safe and effective.
How an Outsourced CMO Fits into Your Workflow
Here is how to integrate an outsourced CMO into your workflow without stress.
A. Getting Started & Onboarding
Begin with a clear plan to bring an outsourced CMO into your business. Ask yourself: What are your marketing goals, current strategies, and key challenges? Provide answers to these questions, as this detailed information helps the CMO understand your needs and customize their approach.
Next, create an onboarding process that includes meetings with your in-house team and access to relevant data. These data should include things like metrics they are to achieve during the course of their time with you. This should include the following:
- Number of monthly visitors to your website
- Number of new leads generated
- Percentage of visitors who take a desired action (ex. filling out a form)
- Total sales generated from marketing efforts
- Cost to acquire a new customer
- Revenue generated from marketing compared to the cost
- Percentage of recipients who open emails and click on links
- Measure how well your brand is known in the market, etc.
Finally, set up clear communication channels, like Slack or one you’re most comfortable with. Have regular check-ins (every Friday) to see how things are going. This structure helps you monitor progress and make any necessary adjustments quickly.
B. Staying in Touch & Reporting Progress
As we discussed above, make sure you communicate regularly with your outsourced CMO. Set up weekly or bi-weekly meetings to discuss progress, challenges, and upcoming tasks so that everyone is on the same page regarding work progress.
Use project management tools to track the CMO’s activities and results. Tools like Asana or Trello can help you monitor project status, build trust, and hold everyone on the team accountable.
C. Planning & Putting Strategies Into Action
Collaborate with your outsourced CMO to create a detailed marketing plan. Define clear objectives, target audiences, and key performance indicators (KPIs) like website traffic or lead conversion rates.
Next, make sure the CMO translates the plan into actionable strategies that inform and convert new subscribers and keep old ones. Each piece of content should match your business goals and be designed to achieve measurable results.
D. Working With Your In-House Team
Make sure your in-house team collaborates effectively with the outsourced CMO. Start with clear introductions and define each team member’s role. Specify who will handle social media, who will manage content creation, and who will oversee analytics. This clarity helps everyone understand their responsibilities and promotes teamwork.
Encourage open communication between the CMO and your team. Hold bi-weekly meetings to discuss progress and use collaborative tools like Slack or Trello to keep everyone connected. You can assign someone from the team to set up a Trello board where team members can update the status of their tasks and share feedback.
Provide access to necessary resources and information. Share relevant data, like customer insights, market research, and sales figures, to support the CMO’s work. You should also make sure they have the tools they need, like access to your CRM system or marketing software.
E. Tracking Results & Making Adjustments
Track the performance of your marketing strategies at the end of every month. Use tools like Google Analytics to measure website traffic, lead conversion rates, and social media engagement. With these insights, you know what works and what needs improvement.
Review the data with your outsourced CMO to identify trends and areas for adjustment. If you notice a drop in lead conversions, discuss potential causes and brainstorm solutions. Discuss which tactics are successful, like a particular email marketing campaign, and which ones need tweaking, like an underperforming ad.
Implement changes based on the analysis. Adjust strategies by reallocating the budget to high-performing channels, updating old or outdated content to better resonate with your growing audience, and refining campaigns to improve results.
F. Addressing Any Issues Or Hiccups
Stay on top of issues and address concerns that come up right away to keep things on track. For example, if a marketing campaign isn’t generating expected leads, discuss this as soon as you find out to understand the root cause.
Work together to find solutions. If there’s a miscommunication about campaign goals or a missed deadline, clarify expectations and set new, realistic timelines. Develop a plan to address the issue, like revising the campaign strategy or reallocating resources, and implement changes swiftly.
G. Measuring Success & Return On Investment
Evaluate the success of your marketing efforts regularly. Use KPIs like sales growth, lead generation, and brand awareness. Here are the most useful marketing success KPIs to track:
- Sales Growth: With this, you can measure the increase in sales revenue over a specific period. It indicates the effectiveness of your marketing strategies in driving sales.
- Lead Generation: This helps you track the number of new leads generated each month. With it, you can understand how well your campaigns attract potential customers.
- Conversion Rate: This helps you know the percentage of visitors who take a desired action (ex. making a purchase or filling out a form). A higher conversion rate indicates more effective marketing tactics.
- Brand Awareness: This helps you assess how well-known your brand is within your target market. You can measure these metrics through surveys, social media mentions, and search engine trends.
- Customer Acquisition Cost (CAC): This is your cost of acquiring a new customer. Lowering your CAC while maintaining or increasing sales shows efficient marketing spending.
- Return on Investment (ROI): Analyze the return on investment (ROI) for your marketing campaigns. Compare the cost of your marketing efforts to the revenue generated. For instance, if you spent $10,000 on a campaign and generated $50,000 in sales, your ROI is 400%.
Discuss the results with your outsourced CMO. Have a look at what worked well and pinpoint areas for improvement. Use these insights to refine your strategies and improve future campaigns.
5 Best Outsourced CMO Service Providers
Discover the top outsourced CMO service providers to consider for your business.
I. Genius
Genius stands out as the premier choice for outsourced CMO services. Our team excels in sourcing the top 1% of marketing experts to fit your specific business needs. Through a strict selection process, we ensure you get professionals with proven track records and industry-specific expertise.
We start with a thorough analysis of your business goals and challenges. Based on this, we match you with a CMO who has a deep understanding of your industry. To prioritize your needs and make sure you get the best hire, we offer a 6-month guarantee and free interviews with potential CMOs. This lets you find the perfect fit for your business without any risk.
II. GrowthHit
GrowthHit excels in delivering agile and data-driven marketing solutions. After working with over 135 companies, GrowthHit has perfected an agile growth process focused on running ROI-driven tests. They conduct a comprehensive review of your entire growth strategy and aim to help you exceed your goals quickly.
Their approach includes weekly growth sprints, which enable them to move fast, run rapid tests, and achieve results. Each client benefits from dedicated attention, as their growth teams do not manage more than 6 companies simultaneously.
III. Chief Outsiders
Chief Outsiders offers a swift solution for CEOs needing expert marketing leadership without the time and cost of hiring a full-time CMO or CSO. Through their service, you can quickly access battle-tested executives to build and execute your growth strategies effectively.
Using “The Growth Gears™ framework,” Chief Outsiders focuses on insight, strategy, and execution to drive growth. Their well-thought-out approach gives you valuable market insights and helps develop strategies to put your business on a global scale.
IV. Stewart Marketing & Consulting
Stewart Marketing & Consulting brings a unique blend of inside knowledge of the legal industry and an outside perspective to every client engagement. Launched in 2011 after decades of leadership experience in law firms, the firm offers tailored marketing and business development strategies specifically for legal professionals.
Whether you run a large firm or are an individual lawyer, Stewart Marketing & Consulting helps you grow your practice through intentional and effective marketing.
V. Marketing Eye
Marketing Eye uses AI-powered insights to help businesses in Sydney, Melbourne, and Brisbane accelerate their growth. They use the latest technology to analyze your business data, identify your target audience, and create a custom marketing strategy to meet your goals. With over 19 years of experience in Australia and the US, Marketing Eye has a proven track record of success.
Getting Started: Working With Your Outsourced CMO
Learn how to effectively choose and integrate an outsourced CMO into your business.
Step 1: What To Look For
Identify key qualities when picking an outsourced CMO. Look for the following:
- Industry-specific experience to scale your business quickly.
- One with a history of successful campaigns. Ask for case studies or examples of past work that achieved significant results, like increased sales or brand awareness.
- A CMO with a strategic vision. They should be capable of developing long-term plans that align with your business objectives and drive sustainable growth.
- Your CMO should demonstrate flexibility and creativity in response to new challenges and opportunities.
- One with a network of industry contacts that will benefit your business.
When you hire a CMO with the above-listed experience, you know for a fact that they understand your market and challenges and will do all it takes to put your business on the globe.
Step 2: Consider Their Process & Approach
Understand how a typical partnership with an outsourced CMO works. They should start with a thorough assessment of your current marketing efforts. Expect them to review your existing strategies, campaigns, and metrics.
To know that you’re choosing the right CMO for your business, follow these steps:
- Set up an initial meeting to discuss your goals and how they plan to meet them.
- Have them explain their process from start to finish, including strategy development and execution.
- Give them a hypothetical challenge to see their strategic thinking and proposed solutions.
- Ask them to review your current marketing efforts and provide feedback on improvements. You may need to pay a small fee for this, as they will be doing actual work.
- Understand how they measure success. Discuss the key performance indicators (KPIs) they use.
- Speak with their past clients to learn about their performance and reliability.
- Review their sample reports to see that their updates meet your needs.
If, after doing all this, they meet your expectations, you can then offer them the job.
Step 3: Cost Comparison
Set a realistic budget for hiring an outsourced CMO. The cost can vary depending on the scope of work and level of expertise. Here are steps to help you reach a decision:
- List what services are included in the CMO’s offerings and what is excluded.
- Compare the cost structures of retainer vs. hourly vs. project-based models. For example, a retainer may offer consistent support at $5,000 per month, while hourly fees might be $150 to $300 per hour, depending on the CMO’s expertise. Project-based fees can vary widely, from $10,000 to $30,000 per project, based on the complexity and scope of work.
- Calculate the total cost of hiring an in-house CMO, including salary, benefits, and overheads. Compare this with the cost of outsourcing to determine the more cost-effective option.
- Factor in the costs of any new tools or technology the CMO might need. Make sure these are included in your budget.
Budgeting Examples:
- Basic Support: Budget around $3,000 to $5,000 per month if you own a small business that needs basic strategies for social media and email marketing.
- Comprehensive Strategy: For mid-sized companies launching national campaigns with advanced services like SEO and content creation, budget $8,000 to $12,000 per month.
- High-Level Guidance: For extensive responsibilities such as brand development and long-term planning, budget $15,000 or more monthly.
Do your budgeting based on these factors and make sure the CMO’s value aligns with your investment.
Step 4: Sign A Deal
Having a contract with your outsourced CMO is very important. It sets clear expectations and protects both parties. Here is what your contract should have:
Scope of Services
Clearly define the services the CMO will provide. This includes developing marketing strategies, managing campaigns, and overseeing social media efforts. Specify the number of hours per week or month they will work.
Deliverables and Timelines
Outline deliverables, like monthly reports on lead generation and conversion rates. Set clear deadlines for each deliverable so that tasks will be completed on time.
Payment Terms and Schedule
As discussed in the article, detail the payment structure, whether it’s a retainer, hourly rate, or project-based fee. Include the payment schedule; do you want it to be monthly or bi-weekly payments, and specify due dates.
Performance Metrics and KPIs
List the KPIs to be tracked, like website traffic, lead conversions, and sales revenue. Define how success will be measured and reported in the contract.
Confidentiality Agreement
Include a confidentiality clause to protect sensitive business information.
Intellectual Property Rights
Specify who owns the intellectual property created during the engagement. Make sure your company retains ownership of all marketing materials and strategies developed.
Termination Clause
Outline the conditions under which either party can terminate the contract. Include notice periods and any associated fees or penalties for early termination.
Communication and Reporting Protocols
Define the frequency and method of communication. For example, specify weekly meetings via Zoom and bi-weekly email updates. Include details on how progress reports will be delivered.
Dispute Resolution Process
Establish a process for resolving any disputes that may arise. This might involve mediation or arbitration before pursuing legal action.
Indemnification and Liability Limitations
Include clauses that limit liability and outline indemnification terms. This protects both parties from certain legal liabilities and financial losses
Here’s a sample contract template you can use:
| [Your Company Name] Outsourced CMO Agreement Date: [Start Date] Parties Involved: [Your Company Name] [CMO’s Name/Company] Scope of Services: – Development and execution of marketing strategies – Management of social media campaigns (10 hours/week) Deliverables and Timelines: – Monthly reports on lead generation and conversion rates (due on the 1st of each month) Payment Terms and Schedule: – Retainer fee of $5,000/month, payable on the 1st of each month Performance Metrics and KPIs: – Increase website traffic by 20% – Generate 100 new leads per month Confidentiality Agreement: – All business information shared is confidential and cannot be disclosed to third parties. Intellectual Property Rights: – All marketing materials and strategies developed will be owned by [Your Company Name]. Termination Clause: – Either party may terminate the contract with 30 days’ written notice. Communication and Reporting Protocols: – Weekly meetings via Zoom on Mondays at 10 AM – Bi-weekly email updates Dispute Resolution Process: – Any disputes will be resolved through mediation before legal action. Indemnification and Liability Limitations: – The service provider will be indemnified for any liabilities arising from their work, except in cases of gross negligence or willful misconduct. Signatures: [Your Company Representative] [Outsourced CMO’s Representative] |
Step 5: Onboarding
Proper onboarding is key to a successful partnership with your outsourced CMO. Here’s what you should do to make the onboarding process smooth:
Delegate Responsibilities
- Define Roles: Assign detailed tasks and projects to the CMO. For example, have them oversee your social media strategy, manage email marketing campaigns, or develop a content calendar.
- Resource Access: Provide them with all necessary resources, like login credentials for marketing tools (ex. Hootsuite, Mailchimp), access to your CRM, and any relevant data or reports.
- Team Introductions: Schedule introductory meetings with key team members they will collaborate with, like your content creators, sales team, and data analysts.
Set Up Monitoring Systems
- Project Management Tools: Use software like Asana, Trello, or Monday.com to track tasks and deadlines. Create a dedicated project board for the CMO’s tasks to monitor progress.
- Check-in Meetings: Schedule regular check-ins, such as weekly meetings, to review progress, discuss challenges, and make necessary adjustments. Ensure these meetings are structured with clear agendas and goals.
Establish Clear Performance Metrics
- Define KPIs: Set specific performance metrics to measure success. For example, if your goal is to increase website traffic, set a target of a 20% increase over three months.
- Use Analytics Tools: Track these metrics using tools like Google Analytics, SEMrush, or HubSpot. Be sure the CMO is proficient in using these tools and understands your benchmarks.
- Regular Reviews: During your bi-weekly or monthly check-ins, review these metrics to assess performance. Based on data insights, adjust your strategies to stay in line with your goals.
Facilitate Communication
- Preferred Channels: Establish preferred communication channels, like Slack for daily interactions and email for detailed updates.
- Documentation: Make sure all processes, strategies, and progress reports are documented and accessible to relevant team members. Use shared drives or collaborative tools like Google Workspace or Microsoft Teams.
Provide Continuous Support
- Training: If necessary, provide training sessions on specific tools or systems your company uses. This can help the CMO get up to speed quickly.
- Feedback Loop: Create a feedback loop where the CMO can share their observations and suggestions for improvement. This helps in continuous alignment and fosters a collaborative environment
Conclusion
Deciding to hire an outsourced CMO is a significant step. Every business has unique challenges, so you need to consider where expert marketing guidance can make the biggest impact. Thoughtful decisions can transform your marketing efforts and drive growth.
If you’re ready to improve your marketing strategy, partnering with the right experts is vital. Contact Genius now to learn how our top 1% marketing leaders can help you achieve your goals and grow your business.
FAQs
What is the typical duration of an outsourced CMO contract?
The duration of an outsourced CMO contract can vary depending on the needs of the business, but it typically ranges from 6 months to a year. Some businesses opt for shorter trial periods, while others engage an outsourced CMO for longer-term projects.
Can a CMO be a CEO?
Yes, a CMO can become a CEO. The skills and experience gained in a CMO role, like strategic thinking, leadership, and market understanding, can be highly valuable for a CEO position. In fact, many successful CEOs have backgrounds in marketing.
Can an outsourced CMO work with multiple departments within my company?
Yes, an outsourced CMO can collaborate with different departments, like sales, product development, and customer service, for a cohesive marketing strategy. This cross-departmental collaboration helps align marketing efforts with overall business goals.
What industries benefit most from hiring an outsourced CMO?
While any industry can benefit from the expertise of an outsourced CMO, industries with dynamic markets, like technology, healthcare, finance, and eCommerce, see major advantages. These sectors require agile and innovative marketing strategies to stay competitive.
