How Do You Know Whether Your FCMO Is Really Worth the Money?
Marketing in the digital age is challenging. Many companies rely on a fractional chief marketing officer (FCMO) to make it easier. With an FCMO, companies get expert guidance without a full-time commitment.
For San Diego firms, a San Diego fractional CMO agency makes perfect sense. Yet, how do you know if your FCMO is worth it? Sometimes, the best way to know is by working with one. This guide details how you can determine the value of such a partnership, discussing the following points:
- Objectives and KPIs
- Performance reviews
- Skill assessment
- Qualitative measures
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Wondering what a Fractional CMO can do for your business? Watch this video below.
1. Setting Clear Objectives and KPIs
First, you must know what you want to achieve with your FCMO. Maybe you want more people to know about your brand, or perhaps you are looking to sell more products.
Once you have a clear idea, set up some key numbers to track your progress. These are your key performance indicators (KPIs) — think of them as the scoreboard for your marketing game. This way, you know exactly how a fractional CMO can help your company.
For instance, your San Diego-based business aims to become the go-to place for organic food. You can track how many people from San Diego visit your website or how much you sell at local farmers' markets.
2. Regular Performance Reviews
After setting your goals and KPIs, you want to check in regularly to see how your marketing campaign is going. This is not just about looking at the big picture; you also need to dig deep into specific projects.
For example, your San Diego business has a special offer for tourists in summer. You want to look at how this offer affects your business. Do more tourists come to your store? Do people in San Diego talk about your offer online? These details can tell you if your FCMO is really helping you out locally.
3. Skills and Expertise Assessment
It is also critical to gauge your FCMO's knowledge and whether they can put that knowledge into action. A good FCMO should be able to map out a detailed marketing plan that aligns with what you want to achieve. Then, they should help your team make that plan a reality, from creating content to interacting with customers.
How well does your FCMO understand the San Diego scene? Can they devise smart ways to take advantage of local events such as San Diego Comic-Con? Or maybe get a local social media star or influencer to talk about your brand? These are good signs that your FCMO knows how to make your business shine in the San Diego market.
4. Return on Investment
So you have your goals, you are tracking progress, and you are confident in your FCMO's skills. Yet, what about the cost?
An FCMO usually charges by the hour, and the current standard rate is around $200 to $300 per hour. That might seem steep, but you are not hiring them full-time. You will save on items such as benefits and paid leave.
If you are a San Diego-based restaurant looking to capture more of the tourist market, for instance, you can look at how much additional revenue you have gained since hiring your FCMO. If your earnings have spiked more than the costs of hiring them, that is a strong indicator you are getting your money's worth.
5. Qualitative Measures
Beyond the numbers, you have less tangible but equally important factors to consider.
How well does your FCMO fit into your company culture? Are they bringing in new and exciting ideas? Do your employees feel more motivated and clear about the company's direction? In San Diego, where local culture and community are big draws, having an FCMO who understands how to engage with the community can be invaluable.
For example, if your FCMO successfully integrates your brand into local events such as the San Diego Jazz Fest or taps into the surf and beach culture, it can greatly amplify your brand's resonance with the local community.
A good FCMO can do more than just execute tasks. They energize and inspire your team, leading to better overall performance.
You might also consider getting feedback from your team members. If they feel more supported and clear about their roles, that is a positive sign that your FCMO is adding value beyond what you can measure in dollars and cents.
6. Benchmarking and Industry Standards
You must see how your FCMO stacks up against what is typical in your industry or area. Are they performing on par with the average? Perhaps they are outshining the competition? This kind of comparison gives you another angle to determine if your FCMO is worth their fee.
In the San Diego market, you might want to look at how competitors are faring in similar endeavors. If you are a tech startup in the San Diego area, are you gaining more traction than similar startups? Or, if you are a retail business, how do your sales compare to others in the same San Diego mall or shopping district?
7. Flexibility Factor
One of the greatest strengths an FCMO brings to your business is adapting to what your business needs at the moment. This flexibility is advantageous in a city such as San Diego, where the situation can change quickly due to tourist seasons or big events such as conventions.
For example, you run a small hotel near the San Diego Convention Center. When big events such as Comic-Con take place, you are going to have a lot of people wanting to stay at your hotel. A good FCMO can help you get ready for that rush and make the most money out of it.
However, when it is not tourist season, maybe you want to attract locals looking for a weekend getaway. A FCMO can switch gears easily to help you do that.
Being flexible also means you can change your plans if something is not working. If a marketing plan works well, your FCMO can enhance it further. If a particular part of your campaign performs poorly, your FCMO can help your company change directions quickly.
The flexibility offered by FCMOs is invaluable. It lets you make the most of whatever's happening in the San Diego market, whether it is a busy tourist season or a quiet time of year.
Figuring out if your FCMO is worth the investment involves more than just looking at numbers. From setting clear goals to being flexible, many factors come into play. If you are seeking expert advice on optimizing your marketing strategies, contact Digital Authority Partners for tailored solutions that drive results.
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