Revenue Growth Management, although the focus of most organizations, seems to be the trickiest strategy to nail down. The very dynamic and interconnected nature of each Revenue Growth Management lever is sensitive to even the slightest of changes. Like a machine, your RGM analytics requires constant fine-tuning, and we are here to help!
We asked our Revenue Growth Management experts to help us build a list of the top mistakes companies might be making and, as a bonus, we even asked them for tips and tricks to fix them.
- Revenue Growth Mindset: While many organizations have built an RGM strategy, it still seems to operate in a silo. This siloed approach fails at giving granular insights. One of the key points to remember is that RGM is not a strategy that shows immediate results. Fixing this requires an aggregated approach using better tool integrations and technology which can be found on Co.dx.
- Unoptimized Pricing Strategies: Pricing is a critical component of revenue growth, yet many businesses do not put enough effort into optimizing their pricing strategies. This can lead to leaving money on the table or losing customers due to pricing that is too high. To fix this, businesses should experiment with different pricing strategies, such as dynamic pricing, value-based pricing, or subscription models.
- Underutilization of Resources: Just like in economics, the resources in your organization are limited, but the list of requirements is quite long. Ineffective resource division and utilization can negatively impact your company's growth and, ultimately, your revenue. Implementing a data-driven approach to resource management is key to solving this problem.
- Hyperfocus on One RGM Lever: One of the biggest mistakes that seems to exist in current RGM strategies is the amount of focus placed on top-line revenue and trade investment. While these levers are important, the hyperfocus comes at the expense of other margin-enhancing areas like retailer assortment, logistical optimization, etc. The easiest way to fix this is by using proper RGM analytical tools like Co.dx that analyze the data across all the RGM levers, indicating what your current focus should be.
- Lack of ease of use: The ease of use of your analytics products could be affecting your user retention rate. Keep a regular check on what complaints your customers have and keep updating your product accordingly.
Our pre-built modules on Co.dx for analyzing growth levers of revenue management are based on three principles
- 42% of consumers say that lower prices drive their purchase decisions.
- 75% of the consumers say they prefer online and offline.
- 46% of the consumers say they shopped a different brand in 2022.