3 Reasons Your Company Needs A Chief Marketing Officer

Friday, 13 September 2024, 10:48 pm
Article: Hugh Grant

28th August 2024

Did you know only around one in four chief marketing officers say their budget is enough to carry out their strategy this year?

According to the 2024 Gartner CMO Spend Survey, marketing budgets have declined from an average of 9.1% of company revenue last year to 7.7% this year. That's a 15% drop year-over-year. Considering CMOs must do more with less, your company needs the right one.

According to Payscale, the average salary for a CMO in New Zealand is NZ$199,995. It adds that base salaries for CMOs in the country go from NZ$88,000 to NZ$420,000 with bonuses up to NZ$25,000.

Another source says that New Zealand had 605,000 businesses as of February 2023, up 1.8% from February 2022. If your company is among that tally and doesn’t have a dedicated CMO, you should consider why this is the case.

Skilled CMOs don’t come cheap, but that’s no reason to go without one. Here are three reasons every business needs a CMO.

1. They Bring a Strategic Vision

Marketing is the lifeblood of your company. It might sound like hyperbole, but it isn't. Marketing is about driving growth and boosting revenue. And that can only be done by attracting new customers, holding onto existing ones, and communicating a clear and persuasive unique value proposition for your company's offerings. Otherwise, consumers can go to any other retailer for what they want. That’s where a qualified CMO comes into the picture.

A CMO will spearhead the company's strategic marketing plan to achieve objectives. They will have short- and long-term goals, and assess and analyze performance to ensure goals are met.

2. They Help With Brand Building

Every company needs an identity. It's not just about the products and services your company sells. It's about building an identity that consumers can understand, appreciate, and identify with. When brand building is done correctly, consumers will have a reason to patronize your business rather than shop elsewhere.

An experienced CMO will take your company's brand building to the next level. They will build a strong brand from the ground up so it's authentic, believable, and compelling enough to encourage an emotional connection with consumers. CMOs are experts at brand messaging, positioning, and consumer experience.

If you decide against hiring a CMO, your brand building efforts will be compromised. Some companies take a pass on a CMO because of cost considerations. But there’s another option to consider -- a fractional chief marketing officer. When you hire one, you will get a fractional CMO when you need one. That means you’ll have help on an interim basis. You’ll save a ton versus hiring a full-time CMO and paying them hundreds of thousands.

3. They Will Bring Market Expertise

A CMO also brings the market expertise your company needs to get ahead in a competitive marketplace. They know your industry, the key players, the emerging players, the market dynamics, the consumer pain points, and other things. Your CMO will have the skills for decision-making, strategizing, and tackling all challenges ahead.

A fractional CMO will give you the most bang for your buck. They have experience working with companies of all sizes and offer -- for a reasonable hourly rate -- a level of expertise that would otherwise require hiring a CMO full-time. A fractional CMO will add fresh blood to your company’s C-level office and offer new ideas and solutions to address pressing challenges.

These are some reasons your business needs a CMO. Not all businesses necessarily need a full-time CMO, which is why a fractional CMO makes sense. You can get the strategic marketing assistance you need when you need it.

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