Revenue Growth Management (RGM)

Definition

• One of the most important value creation levers for B2B or B2C companies aiming for sustainable growth.
• Encompasses strategies, capabilities, and processes to increase profit margins, top-line growth, and market share.
• Also known as RGM.

Importance

• Helps in driving sustainable growth.
• Provides a framework to prioritize growth levers (marketing, new product launches, price discounts).
• Addresses challenges of investing in all levers across all products simultaneously.

How RGM Works

• Data Aggregation: Collects data from various sources, including internal servicing costs and competitive landscape.
• Demand Understanding: Builds a detailed understanding of customer and consumer demand.
• RGM Analytics: Analyzes impact of changes in investment on different growth levers across products, customer segments, and markets.

Key Questions Answered by RGM

• What assortment of goods and services should be sold?
• How will consumer segments react to price changes?
• When is the ideal time to promote specific products and for how long?
• How to price deals between companies to maximize success?

Benefits of RGM

• Simulates predictions for market reactions to investment changes.
• Considers various internal and external variables.
• Enhances understanding of payback on commercial and marketing investments.
• Consistently delivers share gains and creates more financial resources for growth.