Outsourcing a chief marketing officer (CMO) can offer financial advisor firms the expertise to enhance their marketing strategies without the cost of a full-time executive. For example, an outsourced CMO can help you develop targeted marketing campaigns that attract and retain clients. This professional can also provide insights into market trends, helping firms stay competitive in a rapidly evolving financial landscape, and optimize the firm’s online presence to reach a broader audience.
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What Does an Outsourced CMO Do?
An outsourced CMO plays an important role in helping financial advisors grow their business by providing specialized marketing expertise without the overhead costs of a full-time executive. By analyzing market trends and consumer behavior, an outsourced CMO can help develop targeted campaigns to reach a wider range of potential clients and establish the firm as thought leaders in the industry.
In addition to strategic planning, an outsourced CMO can focus on optimizing digital marketing efforts, which are essential in today’s technology-driven world. This includes improving the firm’s online presence through search engine optimization (SEO), content marketing and social media engagement.
An outsourced CMO can also provide valuable insights and analytics to measure the effectiveness of marketing campaigns. By tracking key performance indicators (KPIs) and analyzing data, they can adjust strategies in real-time to maximize results.
This data-driven approach can help financial advisors align marketing activities with their firm’s goals, and allocate resources efficiently for potential growth and profitability.
Benefits of Hiring an Outsourced CMO
In today’s competitive market, financial advisor firms need to adopt innovative and effective marketing strategies to stand out and attract clients. Hiring an outsourced CMO can help you do this. Here are seven general advantages to consider:
- Cost efficiency: Hiring an outsourced CMO can allow firms to access top-tier marketing expertise without the high costs associated with the salary and benefits of a full-time executive. This arrangement is particularly beneficial for small to mid-sized firms looking to maximize their marketing budget.
- Expertise and experience: An outsourced CMO brings a wealth of experience from working with various industries and companies. Their broad knowledge base and strategic insights can significantly enhance a firm’s marketing efforts, helping to develop an effective marketing plan that drives growth.
- Flexibility: Outsourced CMOs can offer flexibility. Firms can scale their marketing efforts up or down based on their needs and budget, ensuring that they receive the right level of support at all times, without long-term commitments.
- Access to advanced tools and technologies: These professionals typically have access to the latest marketing tools and technologies. By leveraging these resources, an outsourced CMO can implement cutting-edge strategies that improve the firm’s competitive edge and market reach.
- An objective perspective: An outsourced CMO provides an unbiased, external viewpoint on the firm’s marketing strategies and operations. This fresh perspective can identify areas for improvement that internal teams may overlook, leading to more effective and innovative marketing solutions.
- Time savings: With an outsourced CMO handling the marketing strategy and execution, financial advisors can focus on their core business activities. This delegation allows for better time management and ensures that marketing efforts are professionally managed.
- Measurable results: Outsourced CMOs are results-driven and typically employ data analytics to track the performance of marketing campaigns. This focus on measurable outcomes helps firms understand the impact of their marketing investments and make informed decisions for future strategies.
When to Hire an Outsourced CMO
One of the primary signs that it might be time to hire an outsourced CMO is when the firm’s marketing efforts are not yielding the desired results. If client acquisition and retention rates are stagnating despite ongoing marketing activities, an outsourced CMO can bring fresh strategies and perspectives to revitalize the firm’s marketing approach.
Another indicator is a lack of specialized marketing expertise within the firm. As a firm grows, their marketing needs become more complex, requiring advanced skills and knowledge. If the existing team lacks the capacity to develop and execute sophisticated marketing campaigns, an outsourced CMO can fill this gap effectively. This professional can provide the strategic direction and tactical execution needed to elevate the firm’s marketing efforts to the next level.
Additionally, rapid business growth or expansion into new markets often requires more robust marketing strategies. If a firm is launching new services, entering new geographic regions or targeting a different client demographic, an outsourced CMO can help navigate these transitions.
How to Calculate the ROI of Hiring a CMO
Calculating the return on investment (ROI) for hiring a CMO involves evaluating the financial benefits gained from their contributions against the costs incurred.
The first step is to define clear marketing objectives that align with the firm’s business goals, such as increasing client acquisition, enhancing brand awareness or improving client retention. These objectives provide a baseline to measure the effectiveness of the CMO’s efforts.
Next, consider the specific metrics that will be used to track progress. Key performance indicators, or KPIs, such as lead generation, conversion rates, client retention rates and overall revenue growth can help quantify the impact of the CMO’s strategies.
To calculate ROI, compare the revenue generated from the CMO’s marketing campaigns with the total cost of hiring them. This includes their salary, benefits and any additional marketing expenses they incur. For example, if the CMO’s strategies lead to a significant increase in new clients or higher revenue from existing clients, these gains should be weighed against their costs. A positive ROI indicates that the benefits of hiring a CMO outweigh the expenses, justifying the investment.
Further, it’s also important to consider the long-term benefits of hiring a CMO. Effective marketing can result in sustained brand growth, improved market positioning and ongoing client loyalty, which may not be immediately quantifiable but are valuable for the firm’s future success.
Bottom Line
Hiring an outsourced chief marketing officer can provide a financial advisor firm with the strategic marketing expertise needed to thrive in a competitive market. These professionals offer cost-effective solutions, bring a wealth of experience and employ advanced tools and techniques to enhance the firm’s marketing efforts.
Tips for Growing Your Advisory Business
- Working with an advisor marketing platform can free you up so you can focus on other growth activities. SmartAsset AMP, for example, helps you match with leads while giving you the tools you need to follow up. Schedule a demo to learn how you can use it to grow your business.
- It’s important to keep compliance in mind when marketing your business and bringing new leads into your sales pipeline. The SEC’s marketing rule outlines what registered investment advisors can and cannot say when advertising their firms. Reviewing compliance rules for email and social media marketing can ensure that you’re not running afoul of the guidelines.
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