Why not Outsource your CMO?

NoSpin Marketing

NoSpin Debunker #45: June 10, 2002

 

In the last Debunker I described the “ideal” qualifications for a Chief Marketing Officer (CMO). This week we’ll discuss an alternative to actually hiring a new FTE as CMO:

 

Even if you don’t currently have a CMO function, you’re undoubtedly doing some things to dig up more customers and business. But as I’ve reiterated in Debunkers throughout the past 12 months, it’s likely that your Marketing is sporadic at best with gaps in strategy and tactics: key messages, choice of initiatives, coordination across marketing activities, timing and execution of marketing efforts, and follow-up.

 

Maybe you’ve got one or more mid or lower tier marketing type FTE’s who are missing the leadership needed to really get any results from your overall Marketing approach. Or maybe your head of Marketing (CMO title or not) is just not getting the job done. You need someone to head up your Marketing charge.

 

What if your company really needs a CMO, but you don’t have the time to recruit one and you’re not quite ready to pay the big bucks that it is going to take to find and pay a new top-level executive FTE CMO?  Is the answer to muddle along until you get a lot bigger and a lot more profitable? Or, is there an alternative that proactively helps you get bigger and profitable faster?

 

Outsourcing is everywhere

 

Few companies except perhaps some multi-billion dollar Fortune 500 companies don’t already outsource one or more functions (or components of):

 

·        Finance

o       Payroll

o       Accounting

·        HR

o       Recruiting

o       Benefits

·        Legal

·        Information Technology

o       Network maintenance

o       Software Development

o       Hosting

·        Customer Support

·        Sales

 

·        … and even top CEO level management (e.g. as is provided by several hospital management companies). For some excellent primers on Outsourcing in general see this web site.

 

If you engage in any of the promotional aspects of Marketing now, it’s likely that you currently outsource one or more of PR/promotional sub-functions to other firms now:

 

·        Public Relations

·        Web site design/development

·        Creative and Graphics design

·        Copywriting

·        Advertising

·        Media Buying

·        Direct Mail Fulfillment

·        Email Fulfillment

·        Marketing Research, etc

 

But too often there is no one in your small or medium-sized company whose job it is to stay focused on the company’s overall Marketing. The result is a hodge-podge of activity and dollars spent with low chance of success.

 

The Pro’s of Outsourcing your CMO

 

Less expensive than hiring a six-figure marketing pro

 

·        Do you really need a CMO at your office 8-10 hours M-F the whole year? Maybe, but not likely. Instead you can pay for a part-time person and get equal or better quality work and results on 20-50% basis.

·        No additional overhead to pay: space, equipment, furniture, PC, etc 

·        No benefits to pay

·        Also, depending on the skill level of the person chosen, he or she could  handle one or more (although not all) of the marketing sub-functions mentioned above.

 

Lower hiring risk—and more flexibility

 

·        Typically, these people are willing to start on a relatively small project basis so that both parties can evaluate if there is a good match

·        You may need different types of CMO expertise over time, and outsourcing increases your flexibility to meet specific Marketing needs as your company evolves.

·        If you do have to make a change sooner than later, you can avoid the hassle of voluntarily or involuntarily jettisoning that person-- and avoid liability for unemployment compensation, severance, etc.

·        Outsourcing can be a way to check out someone for future FTE employment.

·        A huge amount of work can be done remotely does not even require using an outsourcer in the same city.

 

Access and speed

 

·        High quality, outsourced CMO’s are available in the marketplace. There are highly qualified professionals who are willing and able to work on a part time/full time basis as needed. 

 

·        Otherwise it could take you months and a lot of money just to locate and recruit a stellar, full-time CMO.

 

The Con’s

 

·        That person may not be available every second that you want them available, but that, of course, depends on the agreement that you strike. If you demand a lot of control over your employees and having everyone in the office 8-10 hours a day, outsourcing your CMO, perhaps, not a good option for you.

 

·        You still have to find someone—and go through an evaluation process. See last week’s Debunker.

 

·        On an hourly basis, a high quality CMO outsourcer is still an investment. A CMO level Marketing professional is going to cost you at least $100/hour.

 

The Next Step--Where do I find an outsourced CMO?

 

Review the CMO Debunker from last week. Ask your (and your colleagues’) business contacts (in and out of town), including good marketers who you know; run an ad in your local paper(s); do some quick investigating online; or contact NoSpin Marketing. CMO Outsourcing is a service that I provide or can help you find and/or evaluate options. Email or call me.

 

PS. If you missed the article that mentioned me in The Wall Street Journal, June 4^th, here it is. And here are some comments from Debunker readers about that article.

 

Please let me know what YOU think about this debunker!

 

If you would prefer to be removed from this email list, let me know.

 

Tom Ranseen                           NoSpin Marketing                             615.383.7157