When to recruit a Chief Marketing Officer (CMO) in a startup?

Recruiting a C-Level for a young startup is a real challenge, regardless of the department he leads. But when it comes to recruiting your first Chief Marketing Officer (CMO), part of our company's success is at stake!

The CMO is generally one of the critical positions for a startup, responsible (in part) for growth, and everyone knows how vital growth is for a startup. In particular, the CMO is responsible for increasing the company's revenues and profits, fostering engagement and loyalty, developing brand image and leading the communication strategy.

A casting error would be very harmful, not only in terms of the cost of recruiting itself, but especially in terms of lost revenue and slower growth caused by a CMO that is not suited to your needs.

The first reason why startups fail is due to a poor reading of market demand (42% of cases - forbes/CBInsights). So it's easy to see why startup founders, especially technical founders who aren't familiar with this role, need to pay close attention to choosing their first one. Chief Marketing Officer.

When and how should this highly strategic recruitment be carried out? What type of profile should you target?

As recruitment firm specialized in Tech, Skillink has had the opportunity to help a large number of startups in recruit their management committee at every stage of their development. Here's what we learned from these collaborations regarding hiring the first CMO.

Since 2009, we have seen that the decision to hire a Chief Marketing Officer (CMO) is an important step for any startup. This decision depends not only on the stage of development of the company, but also on factors such as market dynamics, the nature of the product, and the long-term vision of the startup.

When should you consider hiring a CMO?

As the CEO of a startup, you need to be aware of the limitations of your organization at all times and have a clear idea of your ability to deal with problems that arise.

Are you facing multiple marketing challenges that you, as a founder, are unable to meet?

This could be the first sign that it's time to consider hiring a Marketing Director.

But first, ask yourself if there are enough marketing topics to manage. You need to think about what concrete problems this person will be addressing.

You should also ask yourself whether these marketing challenges warrant full-time support. If it's a one-time marketing activity or a limited-scope project, it makes more sense to contract with a freelancer or agency - it will be cheaper and more turnkey than hiring a full-time marketer.

But keep an eye out for how these projects are starting to multiply. Managing all of these freelancers can become a huge waste of time and the cost can exceed the salary of someone who would take on some or all of this work in-house. Also, you don't want your marketing efforts to seem uncoordinated because you've worked with multiple freelancers who didn't talk to each other.

Understanding the startup lifecycle

Before you start the recruitment of a Chief Marketing Officer, it is essential to assess whether your business is really ready to welcome this strategic element into your team. The readiness to find a CMO depends largely on the current stage of growth of your business, and clarifying this point can save you from wasting valuable time and resources.

Each startup goes through different stages: ideation, validation, the start of traction, scaling and maturity. Each phase presents unique marketing challenges and opportunities.

Ideation and validation phases:

During these initial stages, the focus is on product development and market suitability. Hiring a full-time marketing manager may be premature; it seems better to use part-time marketing consultants or experts.

Debut of traction :

When the product starts to be accepted by the market, creating a brand and establishing a customer base become paramount.

A CMO can develop initial marketing strategies, focusing on customer acquisition and feedback.

The transition to the ladder:

When a startup is ready to scale up, the interest of a CMO becomes more pronounced.

Strategic marketing plans, large-scale campaigns, and team building are critical at this stage.

A CMO with experience in the scale of a startup can be a valuable contribution.

Maturity:

At this stage, the focus is on maintaining market shares and exploring new revenue streams.

An experienced CMO can identify paths for innovation, brand building, and market expansion.

Market dynamics and sectoral specificities

The nature of the market and industry also plays a critical role in determining when to hire a CMO and who to target:

BtoC VS BtoB

The CMO role can mean very different things from one company to another. One of the big differences often occurs between BtoC and BtoB companies.

In mainstream businesses, the CMO is often responsible for the direct acquisition of users through means such as advertising and organic acquisition.

In BtoB, the CMO is generally directly responsible for lead generation and sales activation, and must work closely with Sales to generate revenue and growth.

The right time for this recruitment therefore depends on the nature of your go-to-market strategy, is it more focused on marketing or on sales?

If you're trying to build a consumer brand, for example, it seems logical to hire a marketer sooner. It's different for a SaaS product. In general, you need to set up a repeatable sales model first, then add a marketing layer to flesh out the storytelling and start using new channels to generate leads.

Highly competitive markets:

In highly competitive markets, startups have an interest in recruiting a Chief Marketing Officer (CMO) at an early stage. This is crucial in the startup environment, where market dynamics are fast and competition is intense. One CMO named from the start can provide a significant competitive advantage by quickly establishing strong brand awareness and implementing an aggressive marketing strategy. This proactive approach is essential to conquer market shares and effectively position the startup compared to its competitors. The key is a quick positioning of the brand and a action plann rigorous to effectively deploy high ROI marketing initiatives aimed at standing out in a crowded market.

Product complexity and niche markets

In specialized markets, it is essential to understand customer needs.

A CMO with experience in niche markets can be valuable for targeted marketing strategies.

The complexity of the product and the customer journey also influence the decision.

For complex products, such as in DeepTech, a CMO can help simplify and communicate the value proposition effectively. Understanding the customer journey is critical for effective marketing strategies, which an experienced CMO can offer.

The complex and scientific nature of some products requires a CMO with specific skills and understanding. He must be able to communicate (or lead a communication project managed by an agency) complex concepts to a variety of stakeholders, including investors, industry professionals, and users. Professional experience in your field of specialization seems to be a must. In HealthTech, for example, the CMO must understand the regulatory environment and ethical considerations specific to this universe.

DeepTech startups, who are interested in highly scientific and often revolutionary technologies, need a marketing approach that combines technical precision and accessibility. The CMO must be able to translate complex concepts into compelling stories that resonate with both specialized and wider audiences.

Given the innovative nature of these companies, the CMO must focus onEducational Marketing And the Thought Leadership and position yourself as a thought leader. It's about creating content and initiatives that inform the market about technology and its impact.

The CMO also needs to know how to build a team that can manage the nuances of marketing complex technologies. This includes recruiting people who can understand and communicate scientific concepts effectively.

DeepTech CMOs must finally excel at building relationships with key players in the industry, including researchers, investors, and potential customers.

Budgetary Considerations and Allocation of Resources

It's important to assess whether the startup is financially ready to support a full-time CMO and associated marketing expenses.

Les budgetary constraints are a reality for most startups and have fuelled the trend of”Growth Hacking“. They are often looking for inventive marketing profiles who are able to challenge established frameworks and adopt an approach that is strongly focused on KING and metrics (as a source of performance and savings). However, the cost of hiring a CMO isn't limited to salary: you also need to consider the overall marketing budget.

It is also essential to ensure that the planned marketing expenses match the candidate's profile and expectations. If a candidate is used to managing a large team and a comfortable marketing budget, while your startup has no team and a limited budget, recruitment success seems to be in jeopardy.

However, a small budget does not necessarily rule out the possibility of hiring a marketing expert in-house and on a full-time basis. If marketing efforts are focused on content or community, for example, it might be a good idea to hire before you have a lot of money to spend.

Hiring a CMO: the right time and the qualities required

Timing is critical, as is finding the right person with the right skills:

Early-Stage Startups

When it comes to start-ups, especially those that are in pre-priming phase or start-up, the reinforcement of a CMO is probably not necessary for the moment. It makes more sense to focus your efforts on creating a solid foundation for your products and/or services. During these initial phases, your priorities should focus on developing a compelling offer, conducting studies, understanding your target market, and developing your marketing framework.

It's a great time to secure lower-level marketing positions. It is at this stage that it will be the most important of fill specialist positions, as you will need help creating and implementing various marketing campaigns and other actions. The positions available at this stage vary depending on your funding level, from pre-seed to Series A.

Finding candidates who can go from ideation to execution is crucial in the startup phase, and who you hire can make or break your business. So be sure to manage this phase carefully and don't be afraid to wait to find the right candidate.

Looking for a hands-on, agile, and comfortable with uncertainty seems like a good option. The focus should be on building the fundamentals, which requires a mix of creativity and strategic thinking to conduct market research, define targets, and establish brand identity. The profile should be able to define an initial, high-impact marketing strategy, often with limited resources, and be comfortable with a high level of uncertainty and rapid iteration. At this point, the real question is: Do I really need a CMO or simply an expert in a specific field of marketing with great potential and a permanent ability to adapt?

Whatever the marketing profile that you decide to recruit, since it is, by definition, your link with the market, cultural fit is the most crucial ability to assess at this stage of development of your start-up. Make sure the candidate is aligned with your company's culture and values. A CMO or other marketing profile that fits in well with your team can have a significant impact on the motivation, productivity, and ultimately the development of your business.

Your first marketing hires should therefore be competent in the areas that you think will have the most impact on the growth of your business. The return on investment of this recruitment must be clearly defined.

If you decide to recruit a CMO At an early stage, probably around your Series A, also keep in mind that the CMOs that will have the most impact on your business are those who are able to challenge the founders and “educate” their boards on the benefits of long-term marketing investments, while managing daily emergencies and driving KPIs.

You should also think about the role of external partners and suppliers in your marketing organization. Are you currently using external agencies, technology providers, or independent contractors to support your marketing efforts? If that's the case, you need someone who can collaborate effectively with these parties in order to optimize your marketing campaigns.

So, as long as you're ready to set realistic expectations and use your resources wisely, you can't know what you'll be able to achieve with a CMO on your team. If you decide you're not ready to commit yet, you can simply focus your efforts on lower-level positions as you work your way through the scaling phase.

Startups in the growth phase

When the startup enters its growth phase, often marked by a series A or even B campaign, the role of the CMO is oriented towards the intensification of marketing efforts. This involves optimizing marketing channels, refining acquisition strategies, and building a team. Decision-making based on data analysis is becoming crucial, the CMO must be able to use data to refine and target marketing efforts. At the same time, the ability to effectively manage a team and a rapidly expanding budget can make a difference.

At this point, a CMO should have a proven track record of structuring and the intensification of marketing efforts. Since you probably don't have a marketing team yet (or maybe not that big and unstructured), the CMO should have significant experience building and leading successful marketing teams. But profitable and sustainable growth is preferable to unrestrained growth and is a point highly followed by investors. Candidates who have not only increased their turnover, but who have done so profitably, will be particularly in demand. CMOs from funded companies that have focused on smart growth will certainly have an advantage over candidates who are used to large budgets to fuel growth at all costs.

La expansion phase marks a turning point in the company's journey: it's the moment when your company overcame the obstacles of launch and established a solid foothold in the market. You must then prepare yourself to seize opportunities, expand your customer base and increase your turnover. It's a great time to start looking for a CMO, so they can lead you to sustainable growth.

At this stage, it's important to identify your specific expansion goals, which can vary widely depending on your business model, market conditions, and industry. Often the underlying objective remains to increase turnover, so it is important to identify your sources of income and optimize your expenses in order to ensure in particular that you get the most out of your investments in your marketing campaigns.

The expansion phase is an exciting time for CEOs and the presence of a Experienced CMO in the team on which to rely makes it possible to alleviate the pressure considerably. When you have someone with a strategic vision who can tackle complex marketing and expansion challenges, you are better equipped for growth and sustainable success.

Conclusion

The recruiting a CMO is a crucial decision for a startup, regardless of when it comes. That said, it seems commonly accepted that the period of a Series A fundraiser is often conducive to asking the question of this recruitment.

To successfully recruit the CMO who will grow your business effectively, it requires a balance between timing, understanding the market, product-market fit and the overall strategy of the company. The right CMO can accelerate a startup's growth trajectory, build a powerful brand, and help navigate market complexities well. Startups need to assess their current position in relation to their growth ambitions to make this critical decision effectively.

It is a recruitment that must be able to anticipate and for which you must be prepared. In addition, marketing encompasses many issues, so it is important to clearly define the 2 or 3 key topics for which your CMO will be particularly responsible in order to bring you maximum value, knowing that omnipotent profiles are rare and can take a long time to find.

It might be appropriate to look for someone with around six years of experience for the first person in charge of your marketing. A profile that remains versatile, always in contact with the operational side, at the forefront of trends and recent developments in marketing tools and methods, but also who has become an expert in one (ideally two) marketing professions for which you need the most help. A great candidate at this level will advance your business quickly, while developing their own skills and eventually moving into a leadership position in the future. If they're not ready to take that step, you can always hire someone to supervise them when the time comes.

In terms of awarding the appropriate title, you might consider starting with”Head of Marketing“. Be sure to give the CMO title to the right person; giving it too soon may be restrictive in the future. You need someone who is still motivated enough to seek growth and responsibility if they are successful.

Being the first person hired in marketing at a startup is not about recruiting and managing a team right away - it's a single player. It's a demanding job. If a candidate was the first marketing manager elsewhere, make sure they still want to leave “from scratch.”