Strategising for returns on investment

FCMOs focus on driving ROI in several key ways. The first of these is strategic planning to maximise the current budget and reallocate funds to high-impact areas. An often-overlooked step here is goal realignment. Sometimes goals used in marketing are out of date or irrelevant. Occasionally they are repeated year after year without any real consideration, or do not take into account changes in the macroeconomic environment or competition.

Driving ROI also means applying proven marketing strategies from past successes to boost campaigns. This involves leveraging expertise for effective marketing campaigns – often cross-fertilising ideas from one fintech sector to another. FCMOs have their own practice experience to draw on, so there’s plenty of room to trial strategies that have yielded previous results.

Optimizing resources and budgets to address gaps in existing plans is the third area where FCMOs focus. This involves efficient resource allocation and budget re-optimisation – reassigning spend to gaps in strategies where it would prove effective.

Tracking marketing performance

ROI is measured through relevant metrics and data analysis, through the application of three elements.

The first of these is the identification and tracking of relevant KPIs related to the marketing goals. My advice on this is ‘keep it simple’. When you are spending more time deliberating the nature of the KPIs than doing something constructive with the results, you have gone overly complex.

Tracking marketing performance may also include the analysis of customer acquisition cost (CAC) and customer lifetime value (CLV) or organic alternatives such as CTR, organic traffic and referral traffic.

FMCOs should consider evaluating the impact of marketing initiatives on revenue growth. The practice of AB testing on different creatives is well known but rarely used. The aim is rooting out the most effective approaches – content and design.

Benefiting from cost savings and efficiency gains

For fintech firms, hiring a fractional CMO at the right time can have a positive impact on spend and operational efficiency.

Most fintech start-ups face considerable financial challenges long before they reach a point where hiring a full-time CMO is essential. Often there have been many years spent conceiving a software product and writing code (and a business plan) and then trying to make that first sale. Without angel investors or VC backing, marketing is usually a secondary concern during this period in a firm’s lifecycle.

Fractional CMOs offer a cost-effective solution by working on a part-time or project basis. Start-ups and growth businesses can access top-tier talent without the burden of a hefty salary, benefits, and other full-time costs. This cost-efficient approach is particularly appealing to fintech start-ups with budget constraints but don’t want a novice running their marketing operation.

And then there are the operational efficiency gains. Tech start-ups can experience rapid shifts in their growth trajectory as the demand for their solutions grows. Once the firm has gone beyond its first beta client and has a small roster of proven customers, growth can be achieved at an almost alarming rate. This kind of high growth phase demands much more marketing commitment in order to maximise the many opportunities that arise. The amount of time required for marketing from a founder or other key employee with non-marketing responsibilities increases to the point where it becomes unsustainable.

A Fractional CMO enhances startup fintechs by giving them the flexibility to scale marketing efforts up or down as needed, accommodating changing business requirements. Whether it’s launching a new product, entering a new market, releasing a solution upgrade or pivoting the strategy, a Fractional CMO can adapt quickly to support these transitions.

The working arrangement for a FCMO can align with these key times for businesses – perhaps shifting from mainly remote working to more hours in the office, or one or two days per month to one or two days per week.

Making space for collaboration and integration

FCMOs will work closely with internal teams for integration and maximum impact, aligning strategies with overall business objectives. Sometimes the FMCOs work will dovetail with other team members’ skills and abilities, on other occasions the FCMO will be managing distinct projects in support of the main campaigns. The key is to consult and collaborate for unified direction and making sure the messaging and timings all align.

A collaborative relationship between Fractional CMOs and internal teams will have a positive impact on overall ROI, but there are other benefits too. One is the bilateral sharing of expertise – with the FMCO advising on best practice and junior staff often giving guidance on the latest marketing technologies.

The integration process of Fractional CMO strategies with overall business objectives will require careful planning and consideration, but the time invested will pay back handsomely. Remember, if the strategy doesn’t help to meet an objective, then it will need revision or omission.

Look at examples

Our FCMO case studies provide examples of how fractional marketing support can impact business performance and ROI. Discover how our results-driven approach yields impressive results for fintech firms.

A Fractional CMO has the ability to deliver clear ROI where the investment and supporting strategy is strategic and objectives-led. The FCMO will help establish those objectives with you if necessary – sometimes a fresh pair of eyes is all that is needed!

Want to invest in a resource that delivers tangible ROI for cutting-edge fintech firms? PMC will help you to establish your needs, so get in touch with us today.