Revenue Growth Management : Doing The Hard Work Now To Sustain Business Impact Later

Revenue growth management is a strategic approach to increasing revenue over time. It involves analysing and optimising various business areas, including marketing, sales, pricing, and customer experience, to drive sustainable growth and improve business profitability.

Consumer-packaged goods (CPG) and fast-moving consumer goods (FMCG) industries have drastically shifted consumer behaviour during and since the COVID-19 pandemic.

Reports from McKinsey suggest that 25 to 40% of users tried different brands during the lockdown. Shifting customer loyalty means brands must invest in dynamic strategies to attract new customers and retain those they already have.

Revenue growth management becomes a crucial practice that must be taught at the highest levels of an organisation to drive sustainable growth and expand businesses. Below are the key components to consider while implementing a growth management strategy.

Critical Components of Revenue Growth Management

Here are some of the crucial components that must be considered before implementing a revenue growth management strategy:

Targeting market segments

One of the essential factors in driving revenue growth is identifying and targeting the right market segments. This involves conducting market research to understand the needs and preferences of different customer groups.

Research is followed by developing and implementing marketing and sales strategies that effectively reach and persuade these target audiences.

Pricing strategies

Effective pricing strategies are also crucial for revenue growth. This includes setting competitive and attractive prices for customers while also taking into account the cost of goods and services and the value they provide to customers.

Companies may also consider implementing dynamic pricing strategies, which involve adjusting prices based on demand, market conditions, and inventory availability.

Importance of Promotions

With declining customer loyalty to brands, attractive promotional offers have become necessary to attract new customers. Well-researched and personalised online and in-store offers must be actively marketed to consumers regularly. Using behaviour tracking and data analytics, consumer behaviour has to be dissected to understand their exact needs and fulfil them.

Enhanced Customer Experience

Another vital facet to consider while driving revenue growth management is improving customer experience. This includes providing high-quality products or services that meet or exceed customer expectations and offering excellent customer service and support.

Companies can also use customer feedback to identify areas for improvement and make necessary changes to enhance the overall customer experience.

Diverse revenue streams

Revenue growth management may also involve identifying and leveraging new revenue streams through partnerships, collaborations, or introducing new products or services. It may also involve expanding into new markets or regions or entering new industry sectors.

Data analysis

Effective revenue growth management requires a well-defined strategy and the ability to assess and adjust the approach continuously. This may involve regularly reviewing and analysing data on key performance indicators (KPIs) such as sales, customer acquisition and retention rates, and profitability. It may also involve conducting market research to stay updated on industry trends and customer preferences.

Strong leadership

Companies need strong leadership, a clear vision and mission, and a highly skilled and motivated team to implement a revenue growth management strategy successfully. It is also essential to have the necessary financial, human, and technological resources to execute the strategy and achieve the desired results.

By taking a strategic approach to driving growth, we at Growth Jockey help businesses improve their profitability and achieve long-term success.

Best Practices to Optimise Revenue Growth Management

Below are some of the best practices that should be followed to get the most from your revenue growth management strategy.

Training Company Personnel

To develop an effective revenue growth management strategy, leaders must create a distinguished team to handle, implement and evaluate all growth management. This team must also be responsible for training more people to manage new challenges as they arise.

Marketing Mix Optimisation

Both traditional and digital marketing channels are crucial to building a well-rounded marketing campaign to target customers effectively. Statistical data from online channels should be analysed and interpreted to create customised consumer experiences.

The power of social media must be addressed, especially with younger shoppers. Research by McKinsey shows that 60 to 70% of consumers research online before purchasing categories.

Revenue growth management is critical for any business. Growth Jockey can help identify and optimise key areas of the organisation to effectively drive revenue growth and improve profitability over the long term.

Omnichannel Approach

Retailing exclusively in-store or online is no longer a viable option. A strong brand presence across brick-and-mortar stores and e-commerce channels is the way forward to create and retain top-of-mind recall by consumers.

Post-COVID-19 pandemic, consumer behaviour has shifted toward online shopping. E-commerce sales continue to grow alongside a return to in-store shopping.

As research by McKinsey has shown, only 13% of consumers waited for an item to be restocked, while 39% shifted brands or retailers when items went out of stock. This indicates the need for CPG and FMCG businesses to increase distribution and supply chain networks.

Establish A Strong Brand Presence

Effective brand positioning in a competitive market ensures higher brand recall, thus driving sales. If your company does not invest in creating a solid brand presence, consumers may understand the options available to them and choose another brand. Differentiating your brand from other brands in an already saturated market is essential for survival.

Tools For Revenue Growth Management

Businesses can use several tools and techniques to manage and grow their revenue. Here are some of the most effective tools for revenue growth management:

1. Customer Relationship Management (CRM) software: A CRM system helps businesses manage and organise customer interactions. It enables them to track customer data and sales and identify gaps and potential opportunities. This allows businesses to nurture relationships with existing customers and find new customers through targeted marketing campaigns.

2. Marketing automation software: Marketing automation software helps businesses automate repetitive tasks and processes. These include email marketing, social media marketing, and lead generation. This allows businesses to reach a wider audience and generate more leads, ultimately leading to a sustained increase in revenue.

3. Business intelligence software: Business intelligence software provides data-driven insights and analytics that help businesses make informed decisions about their revenue growth strategy. By analysing data on customer behaviour, market trends, and sales performance, businesses can identify areas of improvement and take targeted actions to drive revenue growth.

4. Data mining and analysis: Data mining and analysis involves collecting and analysing large data sets to identify trends and patterns that can help businesses make better-informed decisions. By using data mining and analysis techniques, businesses can identify key drivers of revenue growth and take targeted actions to capitalise on these opportunities.

By implementing these tools and techniques, businesses can take a strategic and data-driven approach to revenue growth management and drive long-term success.

Future Revenue Growth Management Trends

It is difficult to predict with certainty what the future trends in revenue growth management will be, as they are likely to be impacted by various factors, including technological advancements, changes in consumer behaviour, and shifts in market conditions.

However, here are a few potential trends that could emerge in the field of revenue growth management in 2023:

1. Increased use of artificial intelligence (AI) and machine learning: AI and machine learning technologies will likely play a significant role in revenue growth management. For example, businesses may use AI to analyse customer data and predict future purchasing behaviour or automate pricing optimisation and marketing campaign targeting tasks.

2. Increased focus on a personalised customer experience: As customers become increasingly savvy and expect more personalised and seamless experiences, businesses are likely to place an even greater emphasis on improving the customer experience. This could involve investing in technologies such as chatbots, virtual assistants, and customer relationship management (CRM) systems to better understand and meet customer needs.

3. Emphasis on sustainability and social responsibility: As consumers become more conscious of their purchases' environmental and social impacts, businesses may place a greater emphasis on sustainability and social responsibility in their revenue growth management strategies. This could involve implementing eco-friendly practices, supporting social causes, and communicating these efforts to customers.

Technological advances and consumer behaviour changes will likely continue to shape the industry. We at Growth Jockey enable businesses to adapt and stay ahead of the curve, driving revenue growth in the future.

At Growth Jockey, our unwavering dedication lies in creating customised models that effectively tackle the crucial challenges confronted by our clients across diverse industries. Regardless of the size of your company, whether a small-scale enterprise or a large corporation, you can now leverage cutting-edge technology to drive revenue growth.

Take the decisive step towards unlocking the next level of growth for your brand by contacting us today!