Who are Lacewing Media?
We are a London based marketing agency working with international clients at the top of their game.
Great marketing is essential as part of a successful business model.
Achieving sustainable growth while efficiently managing all aspects of day-to-day operations can be challenging. As firms continue to adapt to the latest ideas and new ways of working, traditional roles are evolving to better meet modern demands. One role experiencing notable change is that of the Chief Marketing Officer (CMO). Nearly half of senior marketers report their role has changed over the past two years while 53% are spending significantly more time on digital marketing channels.
The role of the CMO has traditionally been heavily administrative and reliant on constant interaction between sales and business development functions. This often required a full-time, in-house presence with traditional skills to drive marketing strategies, oversee brand management and ensure effective customer engagement.
There has been a noticeable shift in how firms and individuals take an increasingly nuanced and sophisticated approach to their marketing efforts. We have seen an increased focus on the following areas:
Digitisation has presented an opportunity for firms to really understand what their clients and prospects want to hear or are engaged with. Data in marketing, like most other business areas, is key to understanding what works for your business and more importantly, what does not.
Digital marketing is a minefield of best practice, both for personal posting and as a business. Those who get it right are fast tracking their brand recognition above that of their competitors.
Brand marketing is increasing in our sector. Impactful and purposeful messaging to your audience can help keep firms ahead of their competition, but it is a serious commitment particularly for small to mid-sized firms to take on an all-encompassing marketing strategy.
The increased complexity and variety of marketing, encompassing the required digital literacy and skillsets, has placed additional pressure on the traditional CMO model. Firms are now looking to teams who are proficient in a wider range of skills. This shift has resulted in alternative solutions to traditional marketing leadership strategies being tested and ultimately found to be successful, therefore bringing about the rise of the Fractional Chief Marketing Officer (FCMO).
The Role of the FCMO
The FCMO has gained considerable traction within the sector emerging as a solution to some of the challenges faced by the typical CMO role. It might be a ‘buzz phrase’ but it does describe very well the model firms are starting to turn to, to revamp or begin their branding and marketing initiatives. This role provides scalable executive marketing leadership without the long-term financial commitment of a full-time executive, making it particularly advantageous for small and medium-sized firms. The FCMO model allows companies to tap into high-level expertise on a part-time or project basis, thereby better aligning marketing efforts with budgetary constraints.
The concept of fractional leadership is not entirely new. It has been shown to be successful in other areas such as finance and IT, where companies have long utilised part-time CFOs and CIOs. However, its application in marketing is relatively recent and gaining momentum. The FCMO model is particularly beneficial for businesses in growth and scaling phases, where they require strategic guidance that needs to be married with fee constraints. It provides a cost-effective solution while ensuring that the business has necessary resources to drive marketing efforts.
Key Benefits of Working with FCMOs
FCMOs will join your business with experience, yes, but also an innovative approach, knowledge of new tools and market trends and often a support team behind them. An FCMO may have worked with a variety of industries, bringing a depth of strategic insight and a proven track record of successful campaigns and initiatives that can translate into successful branding and marketing outcomes for your firm.
An FCMO will hit the ground running. They will require less time to understand the market landscape and internal processes, which means they can quickly develop and implement strategies that align with business goals. This acceleration is particularly beneficial during critical growth phases, product launches, or when quick pivots are necessary in response to market changes.
As external consultants, FCMOs can provide an unbiased viewpoint that internal teams might find it difficult to see. This objectivity can be invaluable for identifying and addressing blind spots, offering honest feedback on existing strategies, and suggesting innovative approaches that an in-house team might overlook. Their external status also allows them to navigate differing viewpoints more effectively, focusing solely on what is best for the business’s marketing efforts.
FCMOs offer the flexibility to be engaged for specific projects and in critical periods, such as brand redesigns, updates, mergers, acquisitions and other significant marketing events or campaigns. They will also offer longer term solutions to support internal teams or be able to bring their own team to support fee earners on an ongoing basis.
An outsourced FCMO allows for resources to be allocated more effectively. It is a scalable project based on longer term solution that can adapt as the market or your firm changes. A recent survey concluded that 82% of businesses implementing outsourcing strategies experienced significant cost savings, highlighting the financial benefits of the FCMO model.
With so much to offer, the impact of an FCMO on a business can be substantial. 27% of professional services business report an increase in marketing efficiency when using an outsourced model when compared to those relying on in-house teams.
Implementing a FCMO
Successfully implementing an FCMO into your organisation involves a few vital steps to achieve the desired effect. First, clear communication is essential. Client communication skills are a crucial factor in success. Establishing goals and the pathway to achieve those goals is imperative at the outset for both parties. This applies to all third-party relationships, so is nothing new to the asset management sector.
Clear expectations are also important. This includes defining the relationship’s scope, timelines, budgets, roles & responsibilities. When expectations are well-established, both the organisation and the FCMO can work more effectively towards common goals, supporting the necessary requirements for third party governance as a regulated firm.
Maintaining collaboration between the FCMO and your firm is also key in ensuring the stability of the ongoing relationship. Collaboration leads to more informed decisions, successful strategies, increased productivity, and higher quality output. Establishing this type of partnership ensures that both parties are working towards the same objectives, allowing knowledge transfer and a unified marketing approach.
Challenges with a FCMO
Of course, as with any other role, FCMOs can present a series of challenges. These issues often arise because of the difficulties involved with the integration of a third-party service provider.
The future of the FCMO
Integration of more technology is expected to play a significant role in the fields of brand and marketing. As businesses increasingly recognise the value of flexibility, cost efficiency and diverse expertise, the demand for FCMOs is likely to grow.
Technological advancements further enhance the appeal of FCMOs, as the ability to make use of advanced data analytics, artificial intelligence, and machine learning to drive more effective marketing strategies becomes essential to measurable success. This integration of recent technologies will not only improve marketing outcomes but also provide deeper insights into customer behaviour and marketing trends. The flexible nature of the role will also allow companies to better adapt to the new challenges and opportunities presented by technology. This will be a key advantage for businesses working with an FCMO.
As the concept of fractional leadership continues to gain traction market wide, we may see the emergence of more specialised fractional roles across various functions within organisations. This will enable firms to access a broader range of expertise on a flexible basis, further enhancing their ability to adapt to changing market conditions. Our experience shows an upward trend in FCMO popularity, as it emerges as the most flexible, practical and cost effective option in the asset management space.
This article was first published in the AIMA journal: https://www.aima.org/article/why-use-a-fractional-chief-marketing-officer.html
https://digitalmarketinginstitute.com/blog/the-evolution-of-the-cmo-whats-next
https://www2.deloitte.com/us/en/pages/operations/articles/global-outsourcing-survey.html