The premise for outsourcing is quite simple: a company can outsource certain functions to a third party, thereby removing the need for in-house employees, training and other expenses.
Outsourcing allows a business to expand into new markets or increase its presence in certain geographical areas that may not be economically viable. For example, the company may have developed a great product that caters to a specific audience in a particular area, but in that area there may be no demand for the product. In this situation, the business can easily obtain the services it needs at a substantially reduced cost – by outsourcing.
Many companies, in an effort to reduce costs, are forced to hire non-native or inexperienced individuals, resulting in poor quality work and lower turnover rates. On the other hand, outsourcing enables a company to receive high quality and consistent work from highly motivated and knowledgeable workers.
The basic difference between in-house staff outsourcing and outsourced marketing is the focus on reducing the cost of obtaining a lead.
The outsourced CMO generally focuses on lowering the cost of acquiring a lead and /or decreasing the lifetime value (LVR) of the customer. They develop benchmarks and implement strategies to achieve these goals. They develop new processes and use technology to facilitate communication between lead generation sources and marketing and sales staff. In some cases, they will implement technology to connect the lead generation process to sales.
The primary advantage of hiring an outsourced CMO is to free up resources in your organization.
By eliminating the need for in-house marketing, you free up the budget for other core business activities. This freed budget, when combined with a strategy to drive more qualified traffic to your website, results in increased revenue and market share. When combined with an effective marketing plan, you will also reduce marketing spend because you’ll be focusing on a single strategy. By contrast, a traditional in-house marketing department may have a number of departments that require funding and staff attention.
In addition to being a cost-effective way to increase your marketing budget, part-time CMOs offer great marketing expertise.
Many marketers are able to bring their existing expertise to bear when working with a small group of marketers. As a small part-time company, the CMO’s resources are not constrained, and so this expertise can be used for a variety of marketing functions, such as lead generation, where a large marketing firm would be wasting valuable resources by employing outside specialists. This flexibility also allows marketers to apply more of their marketing know-how to their small home-based business.
Working with an outsourced CMO also reduces stress in the relationship.
Many marketers have been traditionally placed in an office, where there is a lot of paperwork to be done, and little opportunity to meet with clients. When using a part-time cmo, the marketing agencies can take on the responsibility of ensuring that everything is done on time, with client attention at a minimum. By using the expertise of the agency, you are able to concentrate on running your business, while the marketing agency does the hard work. They will be available to deal with any issues or concerns you might have about the marketing strategy, and can provide inputs into how it might be strengthened.
Working with an outsourced company is also beneficial because you will have access to highly skilled marketers.
Often, marketers have been trained by large marketing agencies. For smaller companies, it can be difficult to find marketers with the same level of experience and skill. An outsourced who will ensure you have a range of talented marketers to choose from. Depending on your needs and budget, you can have an inbound marketing team in place, or you can commission a full service marketing team to focus on your leads.
Another major benefit of using an outsourced me is that you are able to set your own growth goals.
Many marketing agencies will not discuss their clients’ sales and profit goals with them, and this can lead to a lack of focus when it comes to delivering results. With a fractional cmo you will be in full control of all aspects of your marketing. A marketing or team will be able to ensure your numbers are looking good, and you can make changes as they are needed.
Using a fractional CMO for outsourced marketing can really help you save money while maintaining efficiency. The best part is you will have control over all aspects of your marketing. If you have questions about your marketing strategy, you will be able to address them head-on using an outsourced CMO. This may be the best way to hire a marketing team for your business, especially if you want to keep things as streamlined as possible.