Prism Digital Blog

5 Key Metrics a Fractional CMO Can Help You Improve

Written by Georgi Ellison | Nov 7, 2024 12:39:03 PM

Thinking about bringing a Fractional CMO on board? You’re not alone—businesses everywhere are tapping into this flexible, cost-effective solution to level up their marketing. But what can a Fractional CMO really do for your numbers? Here are five key metrics they can help you improve, backed by the stats that matter.

1. Customer Acquisition Cost (CAC)

Current Average: B2B companies spend around $200 to $1,200 per new customer, depending on the industry (HubSpot).

Your CAC is one of the most crucial metrics for sustainable growth, yet it’s often higher than necessary. A Fractional CMO can take a hard look at where your budget is going—ad spend, marketing tools, content creation, and more—and streamline to get better results at a lower cost. Through targeted strategies like audience segmentation, content marketing, and paid ad adjustments, they can help cut down your CAC.

Result: Expect a reduction in your CAC of 20–30% within the first few quarters, allowing your dollars to stretch further across campaigns.

2. Customer Lifetime Value (CLV)

Current Average: Increasing customer retention by 5% can boost profits by 25–95% (Harvard Business Review).

While CAC looks at how much it costs to acquire a customer, CLV focuses on how much that customer brings to your business over time. By implementing loyalty programs, personalized customer experiences, and consistent brand engagement, a Fractional CMO can help you maximize each customer’s lifetime value. Increasing CLV doesn’t just mean more sales; it means you’re building a loyal customer base that returns and refers others.

Result: Many businesses see up to a 40% increase in CLV after enhancing their customer experience and retention strategies.

3. Customer Retention Rate

Current Average: Increasing customer retention by just 5% can increase profits by 25–95% (Bain & Company).

Acquiring new customers is important, but retaining existing ones is more cost-effective and critical for sustained growth. A Fractional CMO can develop retention strategies—like email marketing, loyalty programs, and customer feedback loops—that keep customers coming back. By focusing on retention, you’re building a loyal customer base that not only sticks around but often spends more and refers others.

Result: Effective retention strategies can increase retention rates by as much as 10–15%, fueling steady growth.

4. Lead Conversion Rate

Current Average: Conversion rates across industries hover between 2.5% to 5% (WordStream).

If you’re putting effort into attracting leads but only a few are converting, it’s time to look at where the pipeline is breaking. Fractional CMOs excel at identifying these gaps—whether it’s the messaging, the offer, or the timing—and making data-driven changes to increase conversion rates. They often utilize A/B testing, retargeting campaigns, and optimized landing pages to drive these improvements.

Result: Businesses working with an experienced CMO typically see conversion rates improve by 15–30% as they fine-tune their approach.

5. Marketing ROI

Current Average: For every $1 spent, businesses average a $5 return on investment from digital marketing (Google Economic Impact Report).

Every dollar spent on marketing should bring a measurable return, yet tracking ROI is where many businesses struggle. A Fractional CMO can implement robust analytics tools, set measurable goals, and optimize spending for maximum impact. From enhancing campaign targeting to cutting ineffective spending, they ensure that each dollar works harder. They also continuously monitor and adjust strategies to adapt to changing trends and consumer behaviors.

Result: Companies that monitor and optimize marketing spend closely see up to a 20% improvement in ROI within six months.

Are You Ready to Improve Your Metrics with Prism Digital?

If these numbers speak to your goals, Prism Digital’s Fractional CMO services might be the missing piece in your marketing strategy. Our experienced team provides expert insights, hands-on strategy, and measurable improvements to help transform your metrics—one smart decision at a time.