At what point in a tech company’s growth should it hire a chief marketing officer? At Alloy, we’ve seen businesses name a CMO after getting a seed round, and others who don’t name a CMO until they reach $50M ARR and are owned by a PE firm.
Every organization has unique markers that make this decision subjective. For example, a B2C brand usually needs more marketing power earlier in their company lifecycle than a B2B brand. On the flip side, a B2B company creating a new category also needs a strong marketing strategy on day one.
So, don’t base your decision upon data points such as total revenue, number of employees, or size of venture funding. Instead, assess the business and operational challenges you’re facing to determine whether a CMO is the right solution.
Challenges that a CMO can solve
If you need a go-to-market leader that can architect a winning brand strategy as well as a solid sales pipeline, then you’re ready for a CMO.
But if your needs are more siloed and tactical - for example, content writing and running paid ads - then a CMO is not the right hire (at least not yet). A true CMO will come with ~20+ years of experience, which means they won’t be happy writing email copy or taking photos for your Instagram. Instead, they need a team of direct reports and/or agencies to oversee and build upon.
Similarly, if your challenges are more short-term, such as needing a new CRM or desiring a rebrand, then a CMO might not be a good fit either. CMOs need long-term mandates and sustaining initiatives in order to make them cost effective for you, and motivating for them.
Alternatives to a CMO
If your organizational needs and your budget don’t align with the CMO model today, there are a number of alternatives to consider.
External marketing audit - If you’re on the fence about what your gaps and opportunities actually are, you might want to consider having an outside consultancy like Alloy conduct a full-funnel audit of your marketing performance as well as your brand. This objective data will inform how you can best structure your internal marketing team as well as where to adjust your branding and go-to-market plan.
Fractional or interim CMO - Firms such as TechCXO and Chief Outsiders have benches of experienced tech CMOs who can bring a wealth of knowledge to your company. These leaders will steer you in the right direction and help you get to the next stage of growth. Down the road, a fractional CMO can seamlessly pass the baton to a full-time person.
VP of marketing - If you need a leader who is equal parts hands-on and strategic, then a VP or Director of Marketing is a better fit than a CMO. A hungry VP will be committed to your brand and someone who you can promote overtime as the marketing department expands.
Agency outsourcing - A full-service tech marketing agency will bring multiple layers of talent and skill sets to your organization. From senior-level strategists to PR specialists and digital advertising experts, you can get well-rounded and bespoke service to flex as your tech company evolves. Firms also offer multiple models - from serving as your marketing department to filling specific voids.
Whether you’ve just hired your first CMO or are debating whether you need one, Alloy is here. We’ve spent the past 12+ years supporting software companies at each stage of growth. These client partnerships are always rooted in a mutual desire to accelerate marketshare and cement mindshare. And we have the results to prove it. So, let’s get to work.