The Role of Fractional CMOs in SaaS Success

SaaS companies offer scalable software solutions to businesses that previously relied on clunky, dated, and expensive software. Their products are groundbreaking, intuitive, and created with the end-user in mind. 

With SaaS being so groundbreaking, why don’t more people know about many of these super products? One word: marketing.

Marketing offers a bridge between the product and the customer. However, this isn’t a SaaS company’s core operation, meaning only a limited number of resources can be allocated to it. This is why they should consider hiring a B2B fractional CMO for SaaS companies. 

Companies who hire a fractional CMO for B2B SaaS gain executive-level expertise without establishing an entire marketing department or committing to a full-time CMO. An FCMO can initiate, oversee, and adjust a marketing strategy, acting as the primary point of contact between your company and the marketing operations team. 

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What Is a Fractional CMO for B2B SaaS?

When you hire a fractional CMO for B2B SaaS, you hire a part-time or contract-based senior-level marketing professional. Their roles and responsibilities are the same as those of a regular CMO. However, your company doesn’t have to go the route of employing a CMO full time. Instead, FCMOs offer their services as and when needed. 

Fractional CMOs vs. Consultants: How Do They Differ?

Fractional CMOs in SaaS ensure a positive outcome for the business. The FCMO is responsible for ongoing management of the company’s marketing efforts and is hired on an ongoing basis.  Consultants are only brought in to solve specific problems or work through seasonal marketing challenges. Key differences include: 

Role:  

• FCMO: A part-time chief marketing officer who leads the marketing strategy
• Consultant: Provides expertise and recommendations without taking on a leadership role

Engagement Duration 

• FCMO: A longer-term duration that can run several months to a year
• Consultant: Short-term projects or specific tasks

Level of Involvement

• FCMO: Invested in the company’s operations and culture
• Consultant: An outsider’s view of the results 

Strategic vs. Tactical

• FCMO: Develops, implements, oversees, and monitors marketing strategies
• Consultant: Provides the insights and frameworks but does not execute or manage directly.

Cost Structure

• FCMO: A predictable cost structure that’s set aside for several months 
• Consultant: A more variable cost due to the nature of the depth of involvement, and high consultant rates

Ownership of Work 

• FCMO: The FCMO is responsible for the outcome of the work and takes ownership of the outcomes and team performances during marketing campaigns 
• Consultant: They’re not involved in the process or execution; they only provide recommendations and reports 

Team Management 

• FCMO: CMOs are responsible for managing the teams 
• Consultants: Work independently and don’t manage teams 

How Much Do B2B SaaS Companies Spend on Marketing?

As expected, businesses spend a significant portion of their budget on marketing, and more particularly, on content marketing. When allocating a significant slice of the budget to marketing, your B2B SaaS company needs to ensure that the budget is in good hands. 

One of the FCMO’s roles is to allocate and audit the marketing budget to ensure the objectives are met. Hiring a fractional CMO with a proven track record in B2B SaaS is an excellent way to start allocating your marketing budget successfully.

What Is the Rule of 40 in SaaS?

A pain point for SaaS companies is the desire to scale rapidly at all costs, which results in lag in other areas of the business. This places pressure on operations, profit margins, and support. SaaS and the rule of 40 are critical operating performance metrics.

The 40% rule states that for SaaS companies to remain healthy during the growth phase, their revenue growth rate and profit margin should both stay above 40%. When you hire a fractional CMO for B2B SaaS, they can help you implement the Rule of 40 by introducing a balanced approach to marketing and growth. 

How Much Does a Fractional CMO Cost?

The cost to hire an FCMO typically ranges from $200 to $400 per hour. Companies that hire FCMOs can have as much as a 75% reduction in marketing costs compared to those that employ full-time CMOs. 

Why Hire a Fractional CMO for B2B SaaS Companies

While a CMO with a broader-based experience might meet some of the desired outcomes, there are situations unique to SaaS companies where you’d want to hire a fractional CMO for B2B SaaS instead. For instance, companies often work with fractional CMOs to execute marketing strategies that align with the T2D3 model. These strategies typically include: 

T2: Triple Yearly Growth

Sustainable scaling enables businesses to consistently double their revenue year over year. By refining operations, optimising marketing channels, and aligning product-market fit, companies can unlock exponential growth and monitor measurable marketing results.

D: Double Revenue Every Year 

With the right strategy and focused execution, SaaS companies can double revenue year over year. A fractional CMO brings the strategic leadership to make it happen.

3: Three Times the Investments in Sales and Marketing 

This is to fuel the aggressive growth strategy. With this in mind, FCMOs need to approach their marketing strategy in the following way: 

Aggressive Growth Focus

Direct outreach, which includes in-person networking and targeted promotions, is one of the most effective aggressive marketing tactics. Our client, TXI, trusted the Digital Authority Partners team to assist with rapid growth, which resulted in a 200% increase in organic search traffic. 

Increased Budget Allocation

While there is no concrete rule of thumb for how much of your revenue you should allocate to marketing, exploring market insights can help you find the best figure for your company. Your unique SaaS product and target market will factor into your increased budget allocation. Some B2B SaaS products spend 9.6% on marketing, while B2C products can often allocate as much as 19.5% for their marketing needs.

Targeted Customer Acquisition

This helps identify the correct type of customer for long-term profits and harness the full potential of the customer relationship, such as cross-selling and referrals. 

Enhanced Lead Generation

FCMOs can increase lead generation while reducing customer acquisition costs (CAC) through targeted cold outreach, optimized landing pages, referral programs, and social media communities. At Digital Authority Partners, our team of FCMOs helped our client, DecisionLink, experience a 200% increase in qualified sales leads. 

Sales and Marketing Alignment

To enjoy maximum effectiveness, sales and marketing teams must be aligned. CMOs do this by breaking down silos and clearly defining roles and responsibilities. For our client, KYROS, our team at Digital Authority Partners secured $3 million in new business by using a multi-channel marketing strategy. 

Rapid Experimentation

SaaS companies must quickly test marketing strategies and pivot when necessary to meet their rapid expansion targets. For our client, Robosoft, the Digital Authority Partners team had to pivot the client’s existing website focus into a more integrated and intuitive platform, resulting in $2 million in incremental sales after the redesign. 

Supporting Strategies for SaaS Scalability and Retention

These supporting strategies are effective means for FCMOs to help boost your brand: 

• Brand awareness and positioning: SaaS companies strive to build trust and establish a strong market presence, which is achieved through strategies such as content marketing and defining their unique value proposition. For 8th Light, we wanted to increase their local visibility. The Digital Authority Partners team successfully helped the client achieve a 400% increase in local search visibility. 
• Customer retention strategies: Customer retention requires SaaS companies to complete the sales flywheel. This ensures that customers are onboarded and receive several touchpoints after the sale to ensure brand loyalty through cross-selling and customer satisfaction. 
• Metrics and KPIs: You’ll hire a fractional CMO for B2B SaaS to track the metrics that count, which include the all-important KPIs. These include monthly recurring revenue (MRR) and customer lifetime value (CLTV).
• Scalability: The customer base must grow at the same rate as revenue and costs. 

Launch Support and Product Familiarity

FCMOs with a B2B SaaS background will also know how to leverage other marketing roadblocks unique to the B2B and SaaS spaces. For instance, a SaaS product launch requires a different approach: 

• Create a buzz around the launch 
• Understand the before, during, and after-launch protocols
• Use technology to its advantage to capture and follow up on leads post-launch
• CMOs need to understand the SaaS product to support communications completely

When Should I Hire a Fractional CMO for My B2B SaaS Company?

Businesses know when to add a marketing officer to their exco when marketing efforts no longer reflect the business’s values and become disjointed and siloed. For SaaS companies, there is the added pressure of rapid scaling, which requires the efforts of a marketing officer who understands the unique factors surrounding B2B SaaS companies. 

Hiring a fractional CMO for B2B SaaS gives your company expert marketing leadership without the financial strain of a full-time hire.  You’ll benefit from:

• Marketing leadership
• Clear, scalable marketing roadmap 
• Relief for internal staff

It’s also worth knowing that you can hire an FCMO specializing in specific industries, such as a healthcare fractional CMO.

It benefits companies to have a fresh set of eyes on their marketing campaign, and that’s just one of the reasons to consider hiring an FCMO. However, FCMOs require special skills to tap into the market, especially one that evolves as rapidly as the B2B SaaS market. 

Hiring a Skilled FCMO for Your B2B SaaS Business

Hiring an FCMO allows you to bring a crucial set of marketing skills to your team. Some of the traits and expertise an FCMO should have include:

Strategic Thinking

Strategic thinking is a critical skill in B2B SaaS marketing, given the rapid pace at which campaigns can evolve. FCMOs need to harness forward-thinking skills to adapt to trends and market shifts, ask strategic questions to understand what customers want, and take calculated risks that will set their business apart from competitors. 

Strong Communication Skills

CMOs require strong communication skills to maximize the potential of their teams. These skills include continually assessing their current communication abilities, developing practical listening skills, and mastering the art of storytelling. 

Budget Management

FCMOs know how to maximize their budget by defining their financial objectives, allocating resources effectively, and monitoring results through key metrics. If the budget is likely to be exceeded or there is a surplus, it’s the CMO’s role to adjust the course. 

Results-Oriented

The value of marketing lies in its results. If you’re not measuring your efforts, there’s a chance you’re missing out on valuable insight. CMOs will know which metrics reveal actual value, and which metrics are vanity metrics aimed at puffing up the brand, but not resulting in growth in the bottom line. 

More Questions on a B2B SaaS FCMO’s Role? Let’s Talk

Hiring a fractional CMO for B2B SaaS is your next step in cutting costs without cutting corners. Getting a fractional CMO on board will help you clear out bottlenecks in your marketing strategy, align your teams into a marketing funnel, and monitor the success of these endeavors for the best results, all at a fraction of what it would cost to hire a full-time CMO. 

At Digital Authority Partners, our seasoned experts drive real results—faster growth, more substantial alignment, and marketing strategies tailored to your SaaS goals.

Contact us to schedule your complimentary consultation today and discover the advantages of a fractional CMO, without the full-time cost.