How are consumers making purchase decisions?

Without RGM businesses will falter

In 2020 one thing came through very clearly and that was the need to refocus on Revenue Growth Management to optimise brand performance and hence drive business growth.
 
Revenue growth management has always been an intrinsic part of good brand management. Optimising portfolio, pricing and promotions is a basic function of a business that wants to drive growth and profitability. It should be part of the day to day function, embedded in the organisation to become a way to shape the strategic ambition of the business, driving the commercial plan.
 
The fact remains that companies can’t operate efficiently in any market without solid RGM capability. At the tactical end, it identifies optimum pricing (based upon consumer price elasticities) or how to reallocate trade investment towards higher growth categories/customers.
 
Since 2004 the Big River team has promoted revenue growth management as a strategic opportunity. We’ve always believed that strategic RGM is an amalgam of understanding of past activities, deep insights and potential actions. Using the insights generated a business can develop both long and short term initiatives to drive growth (and outperform the category). This analysis can support the brand management of the existing portfolio as well as identifying any white space opportunities.
 
Traditionally RGM used to be the brand managers responsibility, but now in many instances, it can be found as a dedicated RGM team. Whoever has responsibility for RGM within an organisation, one thing remains clear, without it businesses will falter. We believe that in recent years that some organisations have overlooked the benefits of RGM.
 
Knowing who your consumers and shoppers are and how they’re making purchase decisions is more important today than it has ever been. If we’ve learned anything from 2020 it is that these behaviours can change.