Role of Virtual CMO in 2021
Small and Midsize Businesses (SMBs) lack the resources to hire an expensive Chief Marketing Officer (CMO). Even if they hire an in-house CMO, it will pose a significant problem for their cashflow. Every company wants to improve its marketing ROI, and freeing-up the cash flow is a massive part of that. Instead of paying a five-figure salary to the in-house CMO, businesses can take a different, more cash-friendly route.
They can hire a virtual CMO , also known as an Outsourced CMO or Fractional CMO. It could potentially save SMBs thousands of dollars! According to a Harvard Business Review report, 53% of B2B marketing executives preferred outsourcing their marketing activities. The outsourced CMO services handle both the strategizing and execution of marketing activities. For this reason, businesses don't have to hire other agencies for various types of marketing activities.
All this at a fraction of the in-house CMO's budget!
The following points emphasize the role of virtual CMO in 2021:
1. Increased Productivity of Employees
Once a company outsources its marketing endeavors, it can divert its complete attention towards its core job. Since the employees have more time in their hands, productivity is bound to increase. Naturally, increased productivity means more profits. Besides, partnering with outsourced CMO services leads to increased client engagement as well as reduced customer churn rates.
The objective of a company's marketing strategy is not just to generate leads but also to convert and retain them. By leveraging the expertise of a virtual CMO, businesses can do just that. Most companies lose their customers because their lead generation budget is used primarily to gain new customers instead of retaining the existing ones. With an outsourced chief marketing officer, SMBs can achieve a more significant ROI by minimizing the attrition rate.
2. Improved Time Management
An experienced marketing professional such as a virtual CMO has expertise in doing the same things as their in-house counterpart in a shorter time. That means companies can meet their goals much faster owing to improved time management. SMBs aim to achieve more incredible speed and quality while reducing their overall marketing expenses. It is only possible by outsourcing the marketing activities.
Businesses don't have to wait months or years to see the results and almost immediately see the benefits. This is not observed when a company hires an in-house CMO. It is because a lot of time is incurred for training and adjustment. That time could instead be utilized by collaborating with an outsourced CMO who can begin with the projects immediately.
3. Accelerated Revenue Generation
When SMBs focus on their bottom line and save resources, accelerated revenue generation is a natural consequence. They achieve better returns for their investment in outsourced marketing activities at a considerably lower cost. Therefore, SMBs can grow their businesses at a faster pace.
During the initial stages of any business, revenue growth is challenging to predict. However, when a company puts in efforts that boost productivity, such as partnering with a virtual CMO, then revenue growth is no longer unpredictable. Moreover, when every department functions optimally, revenues scale up quickly.
SMBs don't have to be the jack of all trades, which ultimately results in wasting valuable resources and time. Instead, they can collaborate with an expert who has years of experience producing good results. This way, companies can concentrate on growing their business and leave their worries about marketing to the expert.
4. Reduced Expenses on Smart Marketing Tools
When hiring an in-house CMO, salary is not the only expense SMBs have to worry about. Apart from salary, companies have to pay hefty licenses for sophisticated marketing tools. Not just that, they have to train their employees on how to use them. As a result, the overall costs keep adding up.
While paying for a virtual CMO, SMBs pay for both human resources and smart marketing tools. A professional marketing agency is always transparent about the tools they use, thereby leaving no scope for doubt. Therefore, SMBs get the best personnel, guaranteed results, and the latest tools by partnering with the outsourced CMO services.
Hence, it eliminates the hustle and costs of purchasing the latest software and training the employees after that.
5. Improved Brand Positioning
With scores of marketing channels available in this digital era, it is challenging to leverage each channel for brand positioning consistently. With limited in-house capabilities, SMBs find it challenging to stay relevant across multiple channels. Therefore, businesses can outsource the responsibility of brand positioning via consistent messaging to a virtual CMO.
They can also raise brand awareness and strengthen their brand voice through various social media platforms handled by outsourced CMO services. Not only would it help engage with existing customers but also acquire new ones.
6. Enhanced Agility of SMBs
SMBs can scale down or scale up as per their circumstances. This is particularly challenging when they have an in-house marketing team and CMO. When unpredictable things occur, businesses have to make a tough decision and fire the employees. However, SMBs can always end the contract with outsourced CMO services and renew it when things are back on track again. Therefore, businesses can maintain their agility during uncertain times.
Agility has never been more significant than in the era of COVID-19. The pandemic has annihilated many SMBs, and many are struggling to stay afloat. The year 2021 will hopefully bring good news for businesses across the world. However, it always pays to be ready for a time when things may not be favorable. Hiring an in-house CMO incurs a considerable cost, and firing one is even more challenging.
Hence, SMBs can rely on a virtual CMO to achieve a more significant ROI of their marketing activities in 2021.
To Sum Up
By outsourcing the marketing activities to a virtual CMO, SMBs can channel their energy and efforts towards the main activity. They can obtain better results within a short period, something which is not possible with in-house counterparts. An increase in employees' productivity, better time management, accelerated revenue generation, enhanced agility, reduced expenses, and improved brand positioning are some of the benefits of outsourcing marketing activities.