There is a growing need for Marketing Technology (MarTech) knowledge. Without that, how else can you fully leverage the latest advancements in MarTech? I propose that tech savvy fractional CMOs can help maximize growth in the MarTech ecosystem.
How? Let’s take a look at the landscape:
The Changing Landscape of MarTech
For some time now, marketers have continued to struggle to accurately measure and attribute campaign impacts across diverse channels. The utilization of predictive analytics and AI data modeling, while promising for targeted marketing, have been a mixed blessing.
There are hurdles to complex data integration, as well as ethical considerations in using AI technologies. Integrating sales intelligence / enablement with marketing automation efforts is often impeded by technical barriers.
Predictive Analytics
Finding platforms with the highest data quality (accurate, complete and relevant) is perhaps the biggest MarTech pain point. According to a report by Gartner (2021), poor data quality costs organizations an average of $12.9 million annually, underscoring the financial impact of this challenge.
We all know that SAP, AWS QuickSight and Tableau are some of the big-name players providing predictive analytics solutions. However, in the lower middle-market it’s worth taking a look Alteryz, AG Trendminer and Analytica.
Meanwhile, data models are becoming harder to understand. There are difficulties involved with embedding insights into operations. The latest advancements in AI as well as data consent and privacy laws have made staying “in the know” seem perilous.
Sales Automation, Enablement & Intelligence
Sure, everyone knows about bread-and-butter platforms like Hubspot and Salesforce. While use of these platforms have become table stakes at the enterprise level, I think it’s worth digging deeper to learn about some niche players. Seismic, Mindtickle, Highspot, iovox and clickz are a few that come to mind.
However, integrating marketing and sales efforts is no walk in the park. A McKinsey Global Survey (2021) indicates that less than 30% of organizations successfully integrate analytics into their day-to-day operations. This suggests a disconnect between analytics capabilities and actual implementation (marketing ops).
“…the path to success is found in enabling your sales people to thoughtfully Go to Customer. To drive personalized, customized impact through a lens of Customer value.”
-Erich Starrett, President of the Revenue Enablement Society (Atlanta Chapter), Atlanta Chapter Chair of Emblaze (American Association of Inside Sales Professionals), Executive member of Pavilion, Enablement Orchestrator
Marketing Analytics, Performance & Attribution
So we’ve already mentioned the ever-increasing volume and complexity of data models. When it comes to marketing analytics and attribution, this complexity makes it difficult for marketers to derive actionable insights. And we all know that the ongoing phase out of third-party cookies is going to have an impact (but how much?). Accurate attribution and proving the ROI of marketing activities in a multi-channel environment was already complex enough.
Snowflake, Segment, and Scaleo.io are some of the attribution platforms available that can account for the multifaceted customer journey. But still, rapid change in this MarTech area is a hurdle. How big of a hurdle? A survey by NewVantage Partners (2022) found that only 24% of executives believe their firm has created a data-driven organization. So clearly there is still a performance issue when it comes to leveraging high-quality data for analytics and attribution.
Solution: a Fractional CMO (Chief Marketing Officer)
The entire point of technology providing scalable marketing automation is so that it’s automated…and scalable. So, while you need C-Level expertise to set up your Growth Engine framework, wouldn’t it make more sense to rent the knowledge and then scale…automatically? I have good news:
The WFH gig economy exploded during the pandemic and this has led to the rise of fractional C-level executives. The world of marketing has certainly not been excluded.
Do you want the person who created Walt Disney’s marketing data analytics program from back in the day? They’ve gone fractional. How about their boss, a personal friend of Michael Eisner, dating back to the 1990s (back during the Disney Renaissance)? They’ve gone fractional. How about Wachovia’s big data analytics master? Yep. Gone fractional. The list goes on and on.
Domain and MarTech Knowledge
Not every Chief Marketing Officer (CMO) comes equipped with a technical background or the adeptness necessary for steering your Marketing Technology (MarTech) decisions. Indeed, the allure of an “agency reputation” or any other peripheral accolade pales in comparison to the indispensable value of possessing deep domain knowledge within your specific industry. The crux of optimizing your marketing strategy lies in securing a fractional CMO who doesn’t just superficially grasp your business model but lives it. Breathes it.
What’s also imperative is a fractional CMO that boasts a proven track record of MarTech implementation. Implementation with tangible results, achieved through their strategic vision.
Finding the Best Fractional CMOs
Business leaders today are inundated with responsibilities, leaving little room to take on the exhaustive task of finding the perfect fit for their company’s specific needs. This predicament often leads them to turn to agencies for their marketing efforts, a move born out of necessity rather than preference.
Recruiting Agencies are NOT Fractional Agencies
The challenge with traditional recruiting agencies is stark. They typically charge a hefty 20%, 30%, or even 40% of an annual salary to find your candidate, with some demanding this fee upfront and others operating on a contingency basis. However, the economics of providing fractional CMO services are not as profitable. Despite some agencies adding “fractional CMO” services in an attempt to adapt, their heart isn’t in it. They simply do not earn enough from these arrangements.
The Trouble with Fractional Agencies
This mismatch has given rise to dedicated Fractional CMO Agencies. These agencies face the same time cost of identifying and securing talent, as recruiters, just for less total revenue. To justify their efforts, they charge significantly higher fees, often keeping 50% of what they bill for their executives. This pricing model essentially doubles the cost for companies, leading to a situation where businesses might end up paying nearly full-time prices for part-time assistance, albeit temporarily.
Finding the Best Individual
The focus, therefore, should shift to evaluating the individual executive rather than the agency itself. Many articles tout evaluating agencies based on their industry reputation or longevity. However, numerous high-caliber fractional executives operate independently, without the backing of an agency. Their ability to meet your specific needs and knowledge of your industry is paramount, overshadowing the reputation of any agency.
A rigorous vetting process tailored to the qualifications of the individual executive, rather than the agency’s brand, becomes crucial. This approach ensures that testimonials, references, and case studies relevant to your industry guide your decision-making process.
A Matchmaking Service
To find a huge pool of qualified individuals, yet be able to work direct without a massive markup, consider matchmaking services. These platforms provide a more cost-effective approach to securing high-quality executives without the burden of traditional agency fees. The focus on matching businesses with executives based on bespoke needs often yields superior results.
Ideally a matchmaking service would specialize at fractional CMOs. If so, they should be able to provide a list of qualified candidates based on your criteria or even provide a searchable database with industry filters.
The Fractional CMO Verdict
The MarTech landscape is complicated, and constantly changing, but you don’t have to go alone. If you can hire someone who has done what you are trying to do before, they’ve already identified a synergistic tech stack. Help is definitely out there, you just have to know where to look.
For more expert articles and industry updates, follow Martech News
ABOUT THE AUTHOR
Ben Arritt, Member Board of Directors, Fractional CFO Pros
Ben Arritt currently serves as a board member for a fractional CMO matching service called GROKKETSHIP and recently launched a fractional CFO service called Fractional CFO Pros. The fractional roster includes previous C-Suite and VP talent from Walt Disney, CISCO, Zipcar, Salesforce, Hootsuite, UberEATS, eHarmony, eBay, PayPal, Whole Foods, PepsiCo, NBC Universal, Edelman, Omnicom Group, and more.
Ben provides free summaries of business books, curated research and business modeling templates on GROKKETSHIP’s blog. Follow him on Twitter (X): @grokketship or connect with him on LinkedIn: https://www.linkedin.com/in/ben-arritt/