Hire a Chief Marketing Officer (CMO) - Best Practices.
Meet Cody Gutierrez, CMO for Hire:
I help $1M-$100M businesses to scale-up profitably. In the corporate world, I earned 9 promotions in 10 years, quickly climbed to the C-Suite & scaled revenue 2X, 5X & 10X for 3 separate companies. In 2022, I walked away from my executive job (CMO) at a VC-backed startup to build my own portfolio of companies to grow & invest in. Learn about me here.
Hiring a Chief Marketing Officer (CMO) - Advice & Best Practices
What is a Chief Marketing Officer (CMO)?
A Chief Marketing Officer (CMO) is a senior executive responsible for overseeing and managing the marketing activities of a company (like the “7Ps”: Price, Product, Place, Promotion, People, Process, Proof). The CMO drives the function of company growth & has three goals: 1. Enhance brand awareness & perception, 2. Create demand & revenue growth, & 3. Be profitable while they do it. CMOs typically lead teams of marketing professionals and collaborate with other departments to align marketing efforts with overall business goals. CMOs typically report to the CEO.
Why Hire a Chief Marketing Officer (CMO)?
Build Brand & Grow Revenue: that’s the short answer.
Strategic Leadership: CMOs guide the marketing team in creating plans & executing initiatives that support the company's long-term vision. They get things done through people, not as an individual contributor in most cases.
Brand Building: CMOs are instrumental in building and managing a strong brand identity. They oversee brand development, positioning, and ensure that marketing efforts effectively communicate the company's values and unique selling propositions.
Market Insights and Research: CMOs are responsible for staying informed about market trends, consumer behavior, and competitive landscapes. They are the driver of organizational capabilities for the marketing department (up-leveling team skills, etc.).
Revenue Generation: CMOs focus on driving revenue growth through effective marketing campaigns. They work to attract new customers, retain existing ones, and maximize the return on marketing investments. This is the main goal of a CMO - balance both growth & efficiency.
Digital Transformation: CMOs are crucial for leading the digital transformation of marketing efforts. They oversee online marketing strategies, social media presence, and the use of technology to reach and engage customers.
Customer Experience: CMOs play a role in shaping the overall customer experience. They ensure that marketing efforts are customer-centric and contribute to building positive relationships with consumers. They are a champion of the customer, plain & simple.
Cross-Functional Collaboration: CMOs collaborate with other departments, such as sales, product development, and finance, to ensure alignment between marketing strategies and overall business goals. This collaboration is essential for a cohesive and integrated approach. The CMO should be on the executive steering committee.
Measuring and Analyzing Performance: CMOs establish key performance indicators (KPIs) and metrics to measure the effectiveness of marketing campaigns. They analyze data to assess ROI and make data-driven decisions to optimize future strategies. Sounds obvious, but their goal is to maximize return on marketing capital. “It’s not creative unless it sells”.
What Does a Chief Marketing Officer (CMO) Do After You Hire Them?
Strategic Planning: Develop and refine marketing strategies in alignment with overall business goals. This involves analyzing market trends, assessing competition, and identifying opportunities for growth.
Team Leadership: Provide leadership and guidance to the marketing team. This includes setting goals, managing resources, and fostering a collaborative and innovative work environment.
Brand Management: Oversee the development and maintenance of the company's brand identity. Ensure consistent messaging and branding across all marketing channels.
Campaign Management: Plan, execute, and monitor marketing campaigns to promote products or services. This involves coordinating various elements such as advertising, content creation, and digital marketing.
Market Research: Stay informed about market trends, consumer behavior, and competitive landscape through ongoing market research. Use insights to inform decision-making and strategy adjustments.
Digital Marketing Oversight: Manage digital marketing efforts, including online advertising, social media, email marketing, and website optimization. Stay ahead of digital trends and technologies.
Budget Management: Develop and manage the marketing budget, allocating resources effectively to achieve maximum return on investment (ROI).
Data Analysis: Use analytics and data-driven insights to evaluate the performance of marketing campaigns. Adjust strategies based on key performance indicators (KPIs) and ROI analysis.
Cross-Functional Collaboration: Communicate & strategize with other company executives.
Customer Experience Enhancement: Focus on improving the overall customer experience through marketing initiatives. Continuous improvement daily on this one.
Partnership Development: Identify and pursue strategic partnerships that can contribute to the company's marketing objectives.
Reporting to Leadership: Provide regular updates and reports to the company's leadership team (or the Board of Directors), detailing the performance of marketing efforts and outlining future plans. PowerPoints, Quarterly Business Review (QBRs), all that type of stuff.
How Much Does Hiring a Chief Marketing Officer (CMO) Cost?
Generally speaking, a base salary $150K - $400K+ depending on various factors (industry, company size, etc.).
How to Compensate a Chief Marketing Officer (CMO)?
It all depends. But here’s the gist:
80% Base Salary: cash is king if you want top talent.
15% Performance-Based Bonus or Incentives: structured/tied to business-level metrics such as revenue growth, market share, or successful campaign outcomes (not vanity metrics like impressions etc.).
5% Equity and Stock Options: align the CMO’s interests with the long-term success of the company. Talk to your attorney on vesting, strike prices, valuations, etc.
+ Benefits Package: Provide a comprehensive benefits package, including health insurance, retirement plans, and other perks such as dental and vision coverage. Consider offering flexible work arrangements, wellness programs, or additional benefits that enhance work-life balance.
+ Alternatives where needed: e.g. signing bonus, relocation assistance, car allowance, professional development stipends, severance packages, retention bonuses, etc.
How to Hire a Chief Marketing Officer (CMO)?
Define the Role and Responsibilities: Clearly outline the responsibilities and expectations for the CMO role. Identify key performance indicators (KPIs) and goals aligned with the company's strategic objectives.
Create a Detailed Job Description: Develop a comprehensive job description that highlights the qualifications, skills, and experience required for the CMO position. Include details about the company culture, values, and mission.
Establish Hiring Criteria: Determine the specific criteria you're looking for in a CMO, including industry experience, leadership skills, strategic thinking, and a track record of successful marketing campaigns.
Executive Search or Recruitment Agency: Consider engaging an executive search firm or recruitment agency with expertise in C-level executive placements. They can help identify suitable candidates and manage the initial stages of the recruitment process.
Internal Recruitment Team: If using an internal recruitment team, ensure that they understand the unique requirements of the CMO role and have experience in executive-level recruitment.
Create a Competitive Compensation Package: Develop a competitive and attractive compensation package that includes a base salary, performance-based bonuses, equity, benefits, and other perks.
Promote the Opportunity: Advertise the CMO position through relevant channels, including your company's website, executive job boards like LinkedIn, industry associations, and social media. Leverage your professional network for referrals.
Screen Resumes and Applications: Review resumes and applications to shortlist candidates who meet the specified criteria. Look for a combination of relevant experience, leadership skills, and cultural fit.
Conduct Initial Interviews: Conduct initial interviews to assess candidates' qualifications, experience, and cultural alignment. Use this stage to discuss their achievements, leadership style, and approach to marketing.
Panel Interviews: Arrange panel interviews with key stakeholders, including executives from different departments. This allows for a comprehensive evaluation of the candidate's fit within the organization.
Final Interviews with Leadership: Arrange final interviews with top leadership, such as the CEO or board members. This stage allows the candidate to interact with key decision-makers and gain insights into the company's strategic vision.
Negotiate Offer and Finalize Contract: Once a suitable candidate is identified, negotiate the terms of the offer, including compensation, benefits, and other details. Work with legal professionals to finalize the employment contract.
Onboarding and Integration: Develop a structured onboarding plan to help the new CMO integrate smoothly into the organization. Provide necessary resources, introduce them to key team members, and set expectations for the first few months.
What Makes a Good Chief Marketing Officer (CMO)?
Strategic Thinker: CMOs need to have a forward-thinking mindset and can anticipate industry trends and shifts.
Leadership Skills: CMOs should be able to inspire and motivate their marketing team.
Analytical Mindset: A good CMO understands the importance of data-driven decision-making.
Adaptability: CMOs should be adaptable to change & navigate evolving trends, technologies, and consumer behaviors, adjusting strategies accordingly.
Creativity: A CMO should be able to think creatively, come up with innovative ideas, and guide the development of campaigns that stand out in the market.
Brand Management Expertise: Successful CMOs understand the importance of brand identity, consistency, and reputation.
Champion the Customer: A good CMO puts the customer at the center of marketing strategies.
Results-Oriented: A successful CMO is results-oriented, focused on achieving measurable outcomes. “Good” marketing is what works, not what looks “cool”.
Tech-Savvy: CMOs should leverage digital platforms for effective online marketing strategies.
Financial Acumen: A good CMO should be able to manage budgets effectively, allocate resources wisely, and demonstrate a clear return on investment.
How to Set Up Your Chief Marketing Officer (CMO) for Success?
Clear Expectations and Objectives: your CMO needs to know & be aligned with overall business goals.
Onboarding and Orientation: Facilitate a comprehensive onboarding process to help the CMO understand the company's culture, values, organizational structure, and strategic priorities.
Introduction to Stakeholders: Introduce the CMO to key stakeholders, including members of the executive team, other department heads, and key team members within the marketing function.
Access to Resources: Ensure the CMO has access to the necessary resources, including budgetary allocations, marketing tools, technologies, and personnel. Address any resource gaps promptly.
Collaboration with Other Departments: Encourage collaboration between the marketing department and other functional areas such as sales, product development, and customer service.
Introduction to Company Data and Analytics: Familiarize the CMO with available data and analytics tools. This empowers data-driven decision-making.
Hiring Scientist CMOs vs. Artist CMOs:
Scientist CMOs:
Analytical Focus: Scientist CMOs are characterized by their analytical and data-driven approach to marketing. They heavily rely on data analytics, metrics, and market research to inform their decisions.
Emphasis on ROI: They prioritize measurable outcomes and return on investment (ROI) for marketing initiatives. Data-driven insights guide strategy development and campaign optimization.
Tech-Savvy: Scientist CMOs are often tech-savvy, leveraging marketing technologies and automation tools to enhance efficiency and effectiveness.
Testing and Experimentation: A key aspect of their approach is testing and experimentation. They may use A/B testing and other methods to optimize campaigns and customer experiences.
Artist CMOs:
Creative Focus: Artist CMOs are known for their creative and artistic approach to marketing. They prioritize brand storytelling, aesthetics, and innovative ideas to capture audience attention.
Brand Building: They excel in brand building and focus on creating a strong emotional connection between the brand and the audience. Creativity plays a central role in developing unique brand identities.
Content and Design: Artist CMOs emphasize compelling content creation and design. They may prioritize visual elements, storytelling narratives, and engaging customer experiences.
When Can You Afford Hiring a Chief Marketing Officer (CMO)?
When you’re committed to growth & you have either the revenue or cash reserves to back it. Generally speaking, your marketing budget should be 25% of revenue, including payroll (like a $250K+ salary for a CMO). You can afford another employee around $150K - $400K in additional revenue. Unless you’re funded, you don’t need a full-time CMO until $1M+ in revenue.
Is Hiring a Chief Marketing Officer (CMO) Worth It?
Yes. Biased opinion because I’m a CMO myself.
