
Continuously capturing value
Consumer goods companies have learned to capture significant value from revenue growth management. But the market dynamics continue to challenge for further improvement in revenue and profit growth. At Quantic we see that revenue growth management (RGM) is a growing priority. To sustain gains of c. 4-7% in gross margin requires embedding practices across the organisation.
Assess, build, capture
Expertise in RGM has been developed at different speeds over recent years. The RGM philosophy of ‘creating value through continuous improvement’ applies to all of the core levers: pricing strategy, price pack architecture, mix, promotion optimisation and total trade investment.
Our approach is built on doing the basics brilliantly and hardwiring them through the business at scale. This requires:
- embedding RGM into the business strategy
- a focus on analysing robust, integrated data sets
- rigorous RGM processes with strong governance and clear accountability
- building capability across the organisation
- leadership to create an RGM mindset.
Companies that integrate RGM across functions and invest in capability building are 2.4 times more likely to capture and sustain its value. (McKinsey)
A longer-term and more integrated approach.
Traditionally core RGM interventions have been tactical in nature and there have been benefits in this approach. To accelerate the impact of RGM it needs to become a key part of the organisation’s strategy. Insights to the category, competitors, channels, customers, consumers and shoppers will inform clear choices about priorities to drive growth. This creates a unified approach that can be as far reaching as prioritizing capital expenditure, M&A and workforce planning.
Going beyond the RGM team.
RGM touches various departments, making it crucial to clarify who is accountable for what. Everyone should understand their part in the process, from start to finish. This requires new and clear ways of working, KPIs, roles, and responsibilities.
Analytics form the backbone of RGM.
To make RGM efforts sustainable, teams need easy access to and the ability to leverage data efficiently. This requires data to be consolidated and structured into a single, reliable source. This is essential in all organisations but more so if data is scattered across different countries and channels.
The RGM fundamentals remain critical.
What got you here in growth and profit from RGM may not get you to where you aspire to be. The shifting landscape of consumer and shopper behaviour and the evolving responses from customers require ongoing reviews. Promotional and pricing optimisation, price pack architectures and trade terms may require adjustment. This requires systemisation so that reviews are timely and efficient combined with organisational agility.
Keep RGM fresh and engaging.
The creation of traction between RGM and corporate processes, ensuring end-to-end integration in the organisation fosters deep integration. For efficiency and effectiveness an RGM lens should be placed on S&OP and annual operating planning processes. By embedding RGM within these essential planning frameworks, cross-functional collaboration is enhanced.
Language should be intentional.
RGM is often regarded as highly technical. Demystifying the language and ensuring everyone speaks the same language creates a unified approach to revenue growth, fostering a culture of excellence and continuous improvement.
RGM will create the payback.
Capability building is a significant commitment. Knowing where to focus programs is central to designing and delivering impactful learner journeys. Taking time to current levels of knowledge and skills is an important start point, as is knowing the level of organisational ambition for RGM. Gaps can be identified and the right set of learning outcomes shaped for different audiences.
Our RGM practices work in three key areas:
Interventions that require subject matter expertise in analysis, tool development and strategy recommendations across:
- pricing strategy
- price pack architecture
- mix
- promotion optimisation
- total trade investment.
Our approach is tailored by audience:
- For RGM practitioners:
Closing gaps against an RGM competency framework, specific modules by lever and a summary module to help them ‘externalise’ RGM. - For non-RGM practitioners:
Developing awareness of the levers and how they can influence RGM success in their specific roles.
Capturing the value of RGM by hard-wiring it across the business for long-term benefits:
- defining how RGM supports the business growth strategy
- integration into business routines and processes
- establishing robust and sustainable data sources
- development of systems, tools and analytics
- leadership to manage change.
Challenge
In 2024 the global Revenue Growth Management (RGM) team at BIC developed an RGM Playbook that provided direction on ‘how to execute RGM successfully’. Packed full of practical tools and models, it provides an excellent reference point for the whole team.
The challenge in 2025 was to launch the playbook across 30+ global RGM team members, to build capability and confidence in using the content and apply best practice in each market.
Approach
Quantic took a two step approach with this challenge:
- Train the Trainer – build capability with RGM leaders
- Action Learning – build capability with RGM practitioners
For step one, we broke the playbook content into manageable parcels and engaged the RGM leaders through a series of short online sessions. The objective was to develop an understanding of the content, and build confidence and engagement ahead of their teams taking part in the Action Learning sessions.
The learner journey for the RGM practitioners in step two included pre-work, a 2-day live ‘Action Learning’ workshop, and follow-on coaching sessions to consolidate the learning. The highlight of the Action Learning workshop was group work on a ‘real’ business case using market data from several local markets. This allowed the delegates to learn how to use specific tools, and apply them immediately in a real market situation to generate a business opportunity. The combination of global theory, practical tools and local real-life application was highly engaging.
Outcome
- Outstanding feedback from delegates in the first two workshops (Paris, France and Shelton, CT, USA), scoring the workshops at 9.3 and 9.7 ex 10 respectively
- Action learning projects developed in the workshops total over $3m in net sales, which would generate an ROI of over 20x for the client investment
- Strong, positive feedback from the client RGM leaders and project owners
Feedback from delegates
‘Overall, I found the training to be very useful. It was a great chance to learn and collaborate with others, and I feel more confident in applying the RGM framework in practice’
‘The workshop was brilliant, the content was interesting & Quantic kept it super engaging.’
