Revenue Growth Management

Revenue Management (RGM) is the application of disciplined analytics that predict consumer behavior at the micro market levels and optimize product availability and price to maximize revenue growth. The practice of Revenue Growth Management has been used for decades in the hotel and airline industry and has historically utilized statistical models and price elasticities based on supply and demand to maximize revenues. It also supports consumer analysis and fare structures based on the concept that not all consumers are created equal.

Consumer behavior and the retail landscape is rapidly changing and is driving unprecedented pressures and opportunities for retailers and manufacturers. In these dynamic times mastering pricing, planning and execution is critical, and it starts with a plan built around strategic priorities.  

The RGM planning diligence and profit focus has transformed episodic, once-a-year planning into an ongoing and dynamic planning practice deeply rooted in advanced analytics.  

RGM governs at the center of the organization, working closely with functions such as brand management, finance, sales & operations to develop and implement strategies. The ultimate goal is transforming the siloed functions into an ongoing streamlined effort of balance & positively affecting efficiency across the Enterprise.

RGM Teams Drive a Holistic Enterprise Approach

Proper allocation, planning, and monitoring of trade spend is critical. CPG companies spend between 11% and 27+% of revenues on Trade Promotions, which is the second largest expense on the P&L.

RGM Teams Help to Shift the Focus & Drive Efficiency: 

• Achieving more efficient volume through trade
• Reducing administrative burden and maximizing cross-functional work & insights
• Providing account teams with capabilities & practices to sell smarter

KPI’s to Measure Promotion Success:

State of the Industry survey respondents noted the most common KPI’s to measure promotion success are ROI- incremental profit, incremental volume, incremental revenue, incremental gross dollar sales, and dollar profit per incremental case. 

With the criticality of trade effectiveness, one can understand why more companies are investing in Revenue Management Organizations.

Learn More About RGM: 

POI offers a suite of RGM trainings designed to build capability across your organization and commercial teams. From foundational understanding for cross-functional roles to practical application for sales and retailer conversations, these sessions equip teams to apply pricing, promotion, mix, and trade insights more effectively. The result: stronger retailer partnerships, smarter investment decisions, and more consistent, profitable growth.

• RGM Basics for Sales Teams™
• Implementing RGM with Retailers™ 
• Demystifying RGM for Organizations™
• RGM Essentials for Senior Leaders™

Unlock the Full Potential of RGM Performance with POI’s RGM Foundation Certification™. Many CPG companies have invested heavily in RGM tools and data, but still miss value because teams lack shared skills and a common language to turn insights into action, leaving RGM siloed and decisions driven by habit. POI’s RGM Foundation Certification™ bridges this gap by equipping cross-functional teams with practical knowledge, tools, and confidence to apply pricing, promotion, trade, and mix levers collaboratively. Through interactive, real-world training across the five RGM pillars, participants gain actionable frameworks to drive smarter decisions, stronger retailer conversations, and faster RGM adoption.