Revenue Growth Management (RGM) is a strategic analytics discipline focused on continuously maximizing an organization’s revenue. An effective RGM program analyzes shopping and consumption patterns and trends and helps determine the right pack assortment, pricing and promotions to consumers in order to maximize revenue growth. While many companies have successful RGM programs, a critical compounding factor is that sales, marketing and finance – guided by different KPIs, incentives and priorities – often have conflicting viewpoints on the optimal strategy to achieve growth. This results in decisions that don’t serve the best interests of long-term revenue growth.
Analytic Edge offers a strategic three-step approach to Revenue Growth Management that focuses on the pillars of analytics capability, drivers of top-line growth and revenue management culture.
- Building Robust Analytics Capability: The first step is to equip an organization with a robust analytics infrastructure and capabilities to drive strategic alignment across key functions like sales, marketing and finance, and provide actionable insights to identify the most important drivers of revenue.
- Investment in Top-Line Drivers: Once the most critical top-line drivers have been identified, the second step is to ensure efficient investment into these in a strategic and long-term manner.
- Fostering a Revenue Management Culture: The third step is to foster a revenue management mindset and culture across the organization, with complete alignment and buy-in from leadership and key functional teams.
Implemented correctly, this approach to Revenue Growth Management can enable companies to improve revenues and margins over the long term, driven by ongoing actionable insights into consumers, shoppers, channels and competitors.
- Helps companies evolve and mature from developing Go-To-Market (GTM) strategies in functional silos to developing GTM in alignment across all functions.
- Enables companies to move from focusing on volumes to focusing on value and margins
- Encourages organizations to evolve and transition from short-term trade-offs driven by annual planning to a more long-term view