Learn about the essential aspects you should keep in mind to ensure you’re successful in implementing a TPM system.
What is revenue growth management (RGM)?
McKinsey & Company defines RGM as "the discipline of fostering sustainable, profitable expansion from your consumer base through an assortment of strategies encompassing product assortment, promotions, trade management, and pricing."
In essence, RGM is a strategic methodology employed predominantly within the CPG industry. It aids businesses in making data-driven decisions regarding critical aspects such as pricing, product assortment, promotional activities, and distribution strategies.
The current revenue growth management (RGM) landscape in the CPG industry
Consumer behavior and changing environmental forces have affected the way CPG organizations plan, optimize, and make sense of promotional events.
The problem is that many organizations lack the technical foundation needed to make the right decisions. In fact, about 75% of RGM programs lack positive profit growth for both retailers and manufacturers.
At the end of the day, your organization needs the right foundation to yield sustainable results and stay ahead of your competition. That’s where investing in the right Revenue Growth Management (RGM) software should come into play so that every level of your organization can align on one source of truth and nimbly react to changing conditions.
What can Revenue Growth Management (RGM) software do for my CPG brand?
At its core, the right RGM software should allow your team to unlock the capabilities you need as your organization's readiness requires. This means that it should be fully equipped with artificial intelligence and machine learning to give you the tools to evaluate and plan your promotional events.
Growth Management (RGM) software capabilities should include:Trade Promotion Management (TPM)
- Account Planning and Budgeting
- Consumption & Shipment Forecasting
- Deduction Management
- Post-Event Analytics
- Scenario Planning
- Promotion Optimization
- AOP Planning
- Price Elasticity Management
- Price pack management & Portfolio management
- Joint Business Planning/Category Management
- Shopper Insights
The solution should equip your team with a user-friendly and transparent UI for easy adoption and onboarding so you can interact and impact the end result in one place.
The top benefits of Revenue Growth Management (RGM) software
1. You have access to advanced analytics at your fingertips
The right RGM solution will allow you to harmonize data to get granular in your planning and target the right microsegments when it comes to retailer needs. This means your team will have the flexibility to manipulate scenarios and immediately analyze trade-offs in volume, spending, and margin to generate the most profitable plans.
This also means your RGM system should be future-proof and allow you to incorporate predictive data into your decisions. That’s where modeling and baseline development comes into play. The right tool will be able to equip you with activities at the account level through accurate uplift and baseline modeling.
This will allow you to have the right product, in the right place, at the right time, and in the right quantities.
2. It promotes cross-functional ownership
When an organization is tied to disparate systems and Excel sheets, it’s hard to deliver impactful results since you’re not aligned on one source of truth.
With the right RGM software, your sales, marketing, and finance teams can gain the visibility they need to reach your organizational goals. You’ll have the opportunity to create a shared vision to drive short-term and long-term impact. The key is to move away from data silos to define and analyze your current state through gap analysis and closure.
A revenue growth management (RGM) solution with a top-down and bottom-up planning process will help your organization create a meaningful action plan and effectively fill in any performance gaps.
3. It helps you reach omnichannel success
There’s no doubt that today’s consumers are looking at brands in a different way. There are plenty of options out there in terms of consumer touchpoints. More importantly, each shopper has the option to choose their own experience when it comes to how to shop when to shop, and where to shop.
Not only do promotions vary from retailer to retailer, but even one retailer can offer different experiences from store to store. This means that, without the right RGM solution, it can be nearly impossible for you to plan accurately, react to consumer behavior, and execute accordingly if your data isn’t up-to-date.
Granular and exhaustive data that are gathered from multiple sources (retailer portals, syndicated suppliers, internal, etc.) is one of the only ways to accurately tap into this information and ensure you reach omnichannel success.
With advanced capabilities available in an RGM solution, your team can keep a pulse on the ever-changing demands of consumer behavior. The right RGM software encourages cross-functional ownership, so your entire organization can unlock the granular data from each individual promotion to test and analyze what resonates best with the consumer.
We can help you manage your promotional events in less time and with more efficiency
For effective Revenue Growth Management, timing is everything. As a CPG leader, you must react quickly to changing conditions. But, when your team is tied to spreadsheets and disjointed information, you lack the single source of truth you need to accurately plan and track the progress of your current and future promotions.
That’s why you need an RGM software you can trust to give your team ready-to-use trade promotion intelligence and RGM capabilities at their fingertips.
Meet CPGvision –an advanced RGM solution. Driven by Artificial Intelligence and Scenario Planning, RGMcloud by CPGvision leverages powerful ML and AI to drive the accurate predictive analytics you need behind all your RGM functions.
Your success is our success. CPGvision proudly provides a dedicated customer success team staffed with CPG industry professionals. Regardless of where you are in your RGM journey, you’ll be fully equipped with the solutions you need for profitable revenue growth. Contact us today to get started.