Cost Center to Revenue Center

cost center to revenue center

Marketers are in a period of extreme transformation – just look at how your accountability is changing.

At The Pedowitz Group, we’ve been consistently asking ONE question for 5 years: Do you, as a marketer, have any accountability for revenue?
In 2008, you replied: “What are you talking about?”
In 2009, you replied: “Not really.”
In 2010, you replied: “About 15% of us have this responsibility.”
In 2011, you replied: “About 30% of us have this responsibility.”
In 2012, you replied: “About 50% of us have this responsibility.”

AND, for those who do not currently have this responsibility, we asked if you thought this accountability was coming, and many said YES!

It’s clear marketers are now being held accountable for some kind of revenue contribution. For many companies, what we’re really talking about is transforming marketing from a cost center to a revenue center. We call this Revenue Marketing Transformation™.

Defining Revenue Marketing Transformation

Changing your marketing organization from a cost center to a revenue-producing arm of your business requires a total transformation, cooperation across many departments and complete dedication. Don’t be fooled: there is no easy, one trick fix.

As a result of The Pedowitz Group’s experience guiding more than 1,000 B2B companies through different stages of this journey, we have learned that this transformation is not an overnight change. It requires a multi-stage, multi-dimensional and multi-year discipline.

The key building blocks for a Revenue Marketing Transformation are: Strategy, People, Process, Technology, Content and Results. Each of these elements has a special definition as it relates to Revenue Marketing, so don’t think generically.

Taken together, we call these six building blocks the RM6 and use them as the set of controls (the HOW) to determine and adjust the sequence, pace, and path for your unique journey.

The Six Controls

Strategy encompasses the overall directional strategy for your Revenue Marketing transformation. It includes the growth plans of your company, aligning marketing objectives to revenue objectives, restructuring marketing for this type of work, a solid communication plan, and a strong, proactive change management plan.
For more information: Revenue Marketing Center of Excellence

People includes specific Revenue Marketing skills and competencies required to be successful in the transition and alignment with key stakeholders, as well as sales. This includes empowering sales with new tools and processes. And don’t forget the all important executive advocacy.
For more information: Skills for the B2B Revenue Marketing Team

Process involves working with key stakeholders to define and map key processes, including: customer buy cycle, life of a lead, customer life cycle, nurturing, funnel management, contact and data management, and testing and QA. Plus, you’ll want to measure effectiveness/maturity regularly.

Technology is the backbone of Revenue Marketing Transformation. A complete and optimized technology stack is essential and it includes: marketing automation, CRM, business intelligence, analytics (data, web, etc.) and content tools.


Content is the fuel for the transformation. Begin with a Revenue Marketing content audit, develop personas, map your buy cycle, and define key campaign messaging to improve targeting and segmentation. Align and execute new campaign strategies, based on your content blueprint. End with a well-defined content operations process that supports Revenue Marketing.
For more information: The New Imperative for the Revenue Marketer: Publish Quick or Perish

Results are what this entire transformation is all about. Establish metrics and KPIs from the beginning. Keep the focus on metrics that matter. Track marketing-generated leads through the sales funnel and forecast the revenue impact from marketing. Create dashboards for executives and day-to-day operations. Drive repeatable, predictable and scalable revenue performance.

Take the RM6 Assessment.

Revenue Marketing Transformation is the process of changing marketing from a cost center to a revenue center. Taking the RM6 Assessment defines where you are – and where you need to be – across the six key elements in the Revenue Marketing Journey. This tested methodology allows you to identify areas where you need assistance or lack skills and competencies and provides a detailed plan for addressing the gaps. The RM6 Assessment enables you to determine your unique path, sequence and pace to achieve Revenue Marketing Transformation. Now that you’ve had a chance to read a short description for each of the RM6 controls, it’s time to assess where you are.

Using a scale of 1-4, where 1 is at the beginning of your journey (Traditional) and 4 is full Revenue Marketing status, assess your “as is” state and your “to be” state for the next 12-month period. Do this for each of the six controls.

So where are you on Strategy, People, Process, Technology, Content and Results?

Take this quick eight minute assessment and receive recommendations on each element of the RM6 – it’s like getting your own mini-playbook.



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