As the saying goes: If you’re not growing, you’re dying. In fact, many business pundits believe there’s no such thing as stagnation—because when you’re stagnating, you’re simply on your way to a slow death.
Growth is key to any B2B company’s survival. But according to McKinsey, only 1 out of 8 companies saw their revenue grow by more than 10 percent a year between 2010 and 2019. And about one-fourth of companies didn’t growth at all. Yikes!
What’s a growth-minded B2B company to do?
For many, the answer is to add a Fractional Chief Growth Officer (GCO).
Why you need a Fractional CGO now
It comes down to two reasons: your customer’s buying journey has forever changed, and traditional leadership structures won’t drive growth in this new environment.
Your buyers have much more control over their journey, they want much more information before they engage with sales (tapping as many as 10 channels up to that point, per a McKinsey study), and they want that information on their terms. How you attract the right buyers, convert them to customers, innovate to meet their evolving needs, and retain them as loyal, profitable customers is markedly different. And if you don’t get it right, you won’t grow.
But in most companies, there is no single leader accountable for growth across this new customer experience. That’s a big impediment with lots of costly consequences—from siloed sales, marketing, and service functions that don’t work together to cultures of blame that keep people running in circles. It all adds up to a lot of waste and little results.
That’s why many B2B companies are adding a Fractional CGO: a senior-level professional who is fully accountable for achieving revenue growth goals.
A CGO acts as a growth catalyst—someone who bridges, but doesn’t replace, the marketing, sales, service, and product functions, and aligns them to drive growth. When you contract for a CGO on a fractional basis, you get all the benefits of this role without tying up budget on a full-time in-house hire (which most middle market companies can’t afford and don’t need).
3 ways a Fractional CGO can transform your growth in 2023
Rather than rattle off a laundry list of a Fractional CGO’s responsibilities, let’s look at 3 specific ways they can help you drive more growth next year.
1. Break down silos that keep you from growing
To grow, you need to attract and retain the right customers. But that involves multiple functions that rarely work together effectively, if at all. A Fractional CGO can look across all those silos, view the experience holistically through the customer’s lens, and drive changes that break down obstacles, fill process or technology gaps, manage competing priorities, or address capacity issues. Need proof that breaking down silos matters? Companies that integrate sales and marketing in their customer interactions see a 300% increase in conversions—so we’re talking big growth potential!
2. Retain more customers
We all know it’s less expensive to retain an existing customer than attract a new one. But it takes a lot more than great service to retain a customer today. You need to dig deep to understand what they value about your products/services, whether your messaging communicates that value, how their needs are evolving, and what it will take to gain their loyalty. A Fractional CGO takes that overarching view, ensuring you’re always in step with what customers expect and doing what it takes to keep their business. CGOs typically have specific retention goals, too!
3. Optimize for better results
Sure, your marketing leader can drive tweaks that make your marketing more effective. But who’s optimizing the entire customer experience to ensure better top-line and bottom-line growth? Unless you have a CGO, the answer is likely “no one.” A Fractional CGO looks at the entire commercialization of the buyer journey and optimizes every step and every interaction. Because they’re not bogged down in where a pain point sits or who owns it, they’re in the best position to drive changes that yield results—fast and seamlessly.
A Fractional CGO has a seat and a voice at the leadership table, and that gives them both the authority and the accountability to really boost a company’s revenue. If you’re struggling to grow beyond the low single digits and you’re serious about growing your revenue in 2023, a Fractional CGO may be the right move!
P.S. Curious about how a CGO differs from a CMO? Watch for our future blogs on this topic!