The startup scene is facing a perfect storm. Soaring costs, talent shortages, and the looming threat of an economic downturn have forced many young businesses to rethink their business strategy. A recent PwC study claims that nearly 40% of CEOs globally are worried their current business model is unsustainable and are looking towards alternative approaches. While hiring seasoned executives to steer the ship ideal, the hefty price tag often makes it a non-starter to startups With layoffs becoming commonplace and investor funding drying up, the pressure to do more with less is immense.
One area feeling the squeeze is marketing. Traditional models, reliant on a full-time team and substantial budgets, are no longer viable. Startups need a more agile, cost-effective solution that helps them maximise returns from marketing efforts while minimising costs. The 2024 SBF National Business Survey underscored these difficulties, with rising costs cited as the top challenge (58%) faced by businesses, followed by manpower availability (53%) and retention (42%). Given Singapore’s high operating costs and intense competition, this is particularly challenging for local startups
Fractional marketing has emerged as a solution
Fractional marketing offers a strategic approach that augments existing marketing teams rather than replacing them entirely. By tapping into the expertise of seasoned marketers on a part-time or project basis, startups have access to top-tier talent without the overhead and pressure of a full-time hire. This model empowers businesses to scale their marketing efforts as needed, ensuring optimal resource allocation.
Furthermore, fractional marketing teams bring a diverse skill set to the table. Companies can tap into the collective knowledge of multiple marketing experts, gaining fresh perspectives and comprehensive solutions to complex marketing challenges. This collaborative approach fosters innovation and adaptability, enabling businesses to navigate the ever-evolving market landscape than they would with a single full-time hire.
By embracing fractional marketing, organisations can enhance their marketing performance, drive strategic growth initiatives, and maintain cost-efficiency. This approach offers a compelling proposition for businesses seeking to optimise their marketing function and spur growth without breaking the bank.
Achieving more with less: A case study on fractional marketing
At OtterHalf, a fractional marketing agency specialising in growing B2B2C tech startups and DTC companies, we realised that fractional marketing teams can help companies achieve their goals quickly while staying within budget.
We worked with Lendela, a leading online personal loan matching platform in Singapore, to drive customer acquisition and retention. As a growth-stage startup, Lendela sought to optimise its marketing strategy through leveraging Meta ads, one of their key revenue drivers. The company required an effective execution plan to increase ads CTR, reduce ads CPA, and explore new revenue streams through affiliate partnerships.
- Increasing CTR by reviewing performance marketing strategy
To meet their needs, we identified key challenges within Lendela’s performance marketing strategy. With one performance marketer managing campaigns across Singapore, Hong Kong, and Australia, there was limited bandwidth for strategic review. To address this, OtterHalf’s marketing strategy review involved a comprehensive analysis of Lendela’s Meta ads data. By categorising ads into top, middle, and bottom-of-funnel stages, we identified areas for improvement. Benchmarking against competitors and combining internal data to provide tailored recommendations for optimisation.
- Reducing CPA
Leveraging our fractional marketing model, we delivered a marketing strategy for Lendela, complete with tactical plans. By optimising ad performance and implementing cost-saving measures, we achieved a 25% reduction in Lendela’s CPA. Our industry expertise and agile approach delivered results at a fraction of the cost.
- Driving meaningful partnerships
We also worked with REFASH, a fashion resale platform, to optimise their partnership marketing strategy. Through our fractional marketing services, REFASH successfully onboarded three new marketing partners, resulting in significant cost savings of nearly S$40,000 which led to the ROI being more than 3X the initial investment.
Likewise, to expand Lendela’s customer base, OtterHalf conducted a comprehensive review of the existing affiliate programme and identified potential partner categories. Through targeted outreach, collaborative pitching, and persistent follow-up, we met expectations by securing three new affiliate partnerships in 2 months
Businesses that can benefit from fractional marketing
Fractional marketing is not a one-size-fits-all solution. Many businesses, particularly those in their early stages of growth who lack a Chief Marketing Officer (CMO) or dedicated marketing personnel, face the challenge of building a robust marketing function without the financial commitment of a full-time marketing team. The uncertainty and complexities of recruitment, training, and onboarding can be significant hurdles when expanding marketing efforts.
In these instances, fractional marketing provides a strategic solution for businesses facing challenges in building a full-time marketing team. By partnering with experienced fractional CMOs and marketing teams, companies can access specialised expertise without the financial burden and time commitment. This approach accelerates marketing initiatives and ensures immediate impact as individuals hired can operate at the required level of proficiency almost immediately.
Unlock your business potential with fractional marketing
In today’s fiercely competitive market, fractional marketing is imperative for SMEs. By optimising resource allocation and tapping into specialised expertise, businesses can gain a significant competitive edge and drive sustainable growth.
This article titled “Small budget, big impact: Achieving marketing success with fractional marketing experts” was contributed by Cassandra Ong, the founder of OtterHalf
About the author
Cass is the Founder and Managing Director of OtterHalf, a marketing consulting firm that specialises in growing tech companies. OtterHalf was created when Cass’ entire marketing function was made redundant at her previous company in March 2023 at the height of a tech layoff. While still dealing with the news of being laid off, she recognised a gap that her team could fill in terms of providing specialised marketing support for tech companies with limited resources, given that companies are still required to grow despite layoffs and hiring freezes, hence, the birth of OtterHalf.
Cass brings with her over 12 years of marketing and partnership experience. She spent 9 years building and leading marketing teams for tech firms ranging from hyper-growth food tech startups – Foodpanda and Chope – to the world’s largest travel guidance tech company, Tripadvisor. She was the first Singapore marketing lead hire and country manager at Foodpanda and Cococart respectively, giving her a unique understanding of the pain points marketers and business owners face at early-stage startups face.
Cass graduated from Singapore Management University in 2011, with a Bachelor of Business Management and majors in Human Resources and Economics.