Driving consistent revenue growth management practices

Client need

A global consumer packaged goods organization, focused on increasing marketing share and doubling revenue by 2030, identified the strategic levers associated with Revenue Growth Management (RGM) as critical practices for advancing towards their revenue targets. The organization sought to drive organic growth by:

1. Ensuring smart, effective, and insights-driven pricing
2. Actively shifting product mix and customer mix to drive profitability
3. Strategically allocating customer investments
4. Driving the highest return on promotion activity
5. Creating proactive, innovative, insights-driven price pack architecture

The organization was at an early stage of RGM capability, with maturity, understanding, and fluency differing by region. To ensure that all employees within the commercial teams had a common understanding of RGM concepts, the organization partnered with BTS to create a globally-consistent RGM development program for its commercial teams.

Solution

BTS co-created a revenue growth management program in partnership with the organization. The resulting initiative was designed to reach all leader levels within the organization’s commercial function. The journey is self-paced, meaning that participating leaders could access the approx. 4 hours of content at times best suited to their individual schedules. This method of delivery also ensured that the organization had its own people upskill themselves, rather than outsource facilitation.

All commercial employees had the opportunity to experience the 101 modules, while a select few were given the opportunity to go through the 201 modules, which was determined by their performance on assessments that followed the 101 modules. Each module immersed leaders in the learning through business simulations and “moments,” which are thought-provoking scenarios modeled after real-life day-to-day experiences with RGM tensions and decision points.

Leaders went through the program with the goal of achieving their RGM certification – an accolade earned by successfully completing all modules and scoring an 85% on the post-program assessment. The certification also ensured that participating leaders possessed a deeper, more consistent knowledge of RGM, contributing to a more consistent RGM maturity across the globe and, in turn, helping the organization activate its 2030 strategy.

Outcomes

By initiating RGM activities, the organization will:

• Build the growth-and-performance capabilities that address long- and short-term objectives to drive net revenue
• Experience profitable growth that fuels investment and offsets P&L cost pressures
• Center on shopper and consumer insights, staying relevant throughout shifts in consumer behaviors
• Manage customer investment requests with prudence and selectivity
• Take a collective management approach to volume, price, trade, and mix

Beyond offsetting cost inflation, RGM programming will drive profitable growth through a strategic and integrated end-to-end approach. Participating leaders will have developed a deeper knowledge of — and also will have built new mind- and skillsets surrounding — smart pricing, trade architecture, trade investment optimization, mix management, and insights-driven price and package architecture.

By building critical, universal commercial capabilities that are rooted in data, analytics, and shopper/consumer/customer insights, RGM activities will enable each participating representative of the organization to reach more buyers, ultimately achieving their new strategy by increasing growth, consumption, and market share around the world.