Alberto Zunzunegui, Partner & Sid Vanchinathan, Founding Partner & Hibrids
We’ve all been there: sitting in rooms where “revenue optimization” gets thrown around like confetti at a parade. And let’s be honest – we’ve seen enough RGM strategies stuck in 2010 to fill a time capsule (we had one ourselves, but we don’t talk about that). The truth is, while everyone’s talking about revenue optimization, most organizations are still treating it as a departmental initiative rather than what it really is – a transformation that needs to flow across the entire organization.
Finance, marketing, sales, supply chain – they’re not just departments to loop in, they’re essential players in the same game. We’ve learned the hard way that when RGM stays siloed, the gap between strategy and execution isn’t just a crack – it’s a canyon. Success demands something different: true cross-functional collaboration that breaks down those walls and creates a unified approach to growth.
Through years of working alongside our clients across different industries, we consistently remind ourselves of this fundamental truth: Revenue Growth Management isn’t just another corporate buzzword – it’s the difference between riding market waves and creating them. Let’s explore five key considerations we’ve found essential for success, drawing from our experience working with industry leaders across sectors:
1. Redefining Success (Because We’ve All Been There)
Growth used to seem simpler – just chase bigger numbers. But we’ve sat in countless rooms where “success” meant different things to different departments, and watched great strategies crumble because of it. It’s like trying to play soccer where each player has a different idea of which goal is theirs.
Here’s a Suggestion: Start with what seems like a straightforward growth target, then pull the thread. If you’re aiming for 15% growth, where exactly will it come from? New markets often mean lower margins at first. Existing customers might offer better margins but slower growth. Premium segments could boost both, but require significant investment. We’ve seen this exercise reveal critical strategic choices that weren’t visible when looking at topline growth alone.
2. From Data Tunnels to Market Mountains
Here’s something we’ve learned: it’s easy to get caught up in the comfort of internal data. We all do it – diving deep into our own metrics while sometimes missing the broader market perspective. It’s like having a powerful telescope but only using it to look at your own backyard. Working across industries has shown us that the most valuable insights often come from unexpected places.
Worth Trying: Look at your most challenging product categories through a different lens – find their parallels in industries that seem completely unrelated at first glance. A luxury car subscription service might unlock insights for your B2B software pricing, or a fast-food chain’s location strategy might reshape how you think about digital service delivery.
3. Digital and Physical: A Love Story
Most businesses still treat digital and physical channels like awkward siblings at a family reunion. We’ve been there too. But here’s what we’ve learned: integration isn’t just possible – it’s transformative when done right.
Quick Win: Follow your customers’ paths across channels for a week. Map out how they move between digital and physical touchpoints. The disconnects you find often point to your biggest opportunities for growth.
4. Building a Trade Framework That Actually Works
Look, perfect pricing and placement sound great in PowerPoint (we’ve all been there with those slides). But the real world is messy, and that’s exactly where the magic happens. Through countless implementations, we’ve learned that flexibility beats perfection every time.
Consider This: Review your last ten promotional campaigns against all three key metrics: volume, revenue, and margin. The patterns you find often point to clear opportunities for framework optimization.
5. Creating Tomorrow’s Growth Engine
The era of “gut feeling” decisions is behind us. There’s a better way forward: predictive RGM that actually works. It’s about listening to what the data has been telling us all along and turning those insights into action.
Start Small: Look at last quarter’s biggest revenue surprise – good or bad. Map out the data signals that preceded it. You’ve just identified the first building blocks of your predictive model.
The Bottom Line
Revenue Growth Management isn’t about having all the answers – it’s about asking better questions and being brave enough to act on what we learn. The best businesses aren’t just managing revenue growth – they’re redefining what’s possible in their markets.
By
Sid Vanchinathan, Founding Partner & Alberto Zunzunegui, Partner
Hibrids