Consumer-goods companies are increasingly building capability in Revenue Growth Management to capture significant value and use it as a strategic growth driver.

Many organisations treat RGM as a ‘silver bullet’ aimed at fixing short-term, immediate corporate profitability issues. Often clients have RGM programmes led by skilled Finance personnel, brilliant at the detailed understanding of SKU-level profitability, but sometimes lacking in the understanding of the overall, consumer-led commercial strategy. Short-term decisions can be taken to the detriment of mid and longer-term brand and commercial objectives.

The most impactful approach to RGM takes it beyond a short-term problem ‘fix’ and makes it a day-to-day part of an organisation’s overall aligned growth strategy.

RGM becomes an enabler of a connected set of functional strategies designed to profitably unlock the growth agenda. Growth strategies define where consumer-led future growth will come from. RGM helps defines the executional detail on how to best exploit these growth opportunities to maximise revenue and profit for the organisation.

Just like Category Management, RGM brings the three pillars of price, portfolio and trade spend together. Unlike Category Management though which looks holistically at the Category, RGM firmly puts the focus on an organisation’s specific portfolio only, right down to SKU-level profitability and takes cost to serve into full account.

Whilst RGM requires the capacity to capture and process a lot of data it also requires the art of having simple, compelling business conversations with customers so that a brand’s RGM solutions also solve the Customer’s commercial challenges.

An effective application of the science and art of Revenue Growth Management unlocks consistent organic sales and share growth which increases their long term value and brand relevance.