OUR FREQUENTLY ASKED QUESTIONS

FAQs

Below you will find our compiled list of frequently asked customer questions and answers.

Strategy & Foundations

What is Revenue Growth Management (RGM) - and why does it matter now?
Revenue Growth Management is the discipline of turning pricing, trade terms, promotions, and mix into a coherent system that drives profitable growth. Instead of chasing volume, RGM ensures that every unit sold contributes the right value – through the right price, pack, channel, and customer. In Europe, this has become critical. Margin pressure from cost inflation, retailer consolidation, and increasing price transparency means that growth without control quickly turns into margin leakage. Companies that master RGM:
  • Actively steer their commercial performance
  • Protect margin logic and brand value with confidence
  • Grow even in flat markets
Those that do not remain reactive – responding to retailer pressure, cost shocks, and competitive moves instead of shaping them. RGM turns commercial decisions into a structured, value-driven system.

Traditional pricing adjusts prices.
Trade marketing drives activation.

RGM connects both – and adds the economic logic behind every commercial decision.

The key shift: From gross revenue thinking to Net Sales Value (NSV)

RGM makes the full gross-to-net reality transparent, including:

  • Trade terms
  • Promotions
  • Customer conditions
  • Logistics impact


This reveals where value is created – and where it leaks.

Where to start?

The most effective entry point is a focused diagnostic, answering three questions:

  • Where do we create value- and where do we lose it?
  • Which levers matter most?
  • Where can we act immediately?


Within weeks, this typically identifies a small number of high-impact actions – without requiring system changes.

Most organisations operate between:

  • Reactive (ad-hoc decisions)
  • Structured (some pricing and promo discipline)


But lack:

  • Integrated data
  • Clear ownership
  • Forward-looking decision frameworks

True RGM maturity means: Decisions are guided, not negotiated case by case

We typically assess five dimensions:

  • Data & transparency
  • Analytical capability
  • Governance & decision rights
  • Organisational alignment
  • Execution consistency


Typical high-impact next steps:

  • Create a single source of truth for trade investment
  • Introduce promotion ROI discipline
  • Define pricing guardrails by channel and customer


These alone can unlock meaningful value within months.

RGM is not just a team – it is a way of working across the organisation.

A strong setup combines:

  • Clear ownership and governance
  • Analytical capability
  • Commercial influence


Typical structure:

  • RGM Lead (strategy & steering)
  • Pricing / Analytics (data & modelling)
  • Trade Investment (execution & ROI)

But structure alone is not enough.

The key success factor: Embedding RGM into existing decision processes

  • Customer planning
  • Pricing decisions
  • Commercial reviews
  • Negotiation preparation


RGM works when it becomes part of everyday commercial decisions — not a separate layer of analysis.

Pricing & Pack Architecture

Europe requires structured flexibility – not one price strategy.

The right approach is a price architecture, based on:

  • Willingness to pay
  • Competitive positioning
  • Cost-to-serve

This defines a price corridor:

  • A floor (cost + brand integrity)
  • A ceiling (consumer value perception)

Within this, markets can act -without destroying value.

Pack architecture is often the most powerful lever (smaller formats for accessibility, larger for value capture)

Price differences across Europe are inevitable – but must be controlled. The goal is not harmonisation, but managed internal price architecture. Key principles:
  • Limit excessive gaps
  • Differentiate packs where needed
  • Monitor cross-border flows
  • Define escalation rules
Pricing governance replaces reactive firefighting

Different channels require different value propositions:

  • Discounters → value & scale
  • Convenience → accessibility & impulse
  • E-commerce → bundles & efficiency


The key is a structured:
Channel × market × shopper mission logic

Most companies either:

  • Overcomplicate portfolios
  • Or miss key consumption occasions


Winning means offering the right pack at the right price for each situation

Price increases are not pushed – they are prepared and structured. Success depends on:
  • Credible cost logic
  • Clear value narrative
  • Structured commercial offer
And most importantly: Linking pricing to overall commercial strategy Well-prepared increases:
  • Protect margin
  • Strengthen retailer dialogue
  • Improve long-term positioning

Promotions & Trade Spend

The key question is not volume – but: incremental value

Effective RGM distinguishes between:

  • Volume you would have sold anyway
  • Real incremental impact

In many cases a significant share of promotions destroys value

Typical issues:

  • Discounting core volume
  • No base recovery
  • No clear ROI logic


Fewer, better promotions outperform more activity

Trade spend is often:

  • Fragmented
  • Historically grown
  • Insufficiently linked to performance


The shift: From spend allocation to investment management

Key steps:

  • Full transparency
  • Classification of spend
  • Linking investments to outcomes


Goal: Move from unconditional spend to performance-driven models

Too many promotions destroy:

  • Price perception
  • Margin
  • Brand value

The solution: Clear guardrails

  • Frequency
  • Depth
  • Recovery periods

Plus:

  • Stronger non-price mechanics
  • Disciplined planning


Consistency builds willingness to pay

Trade terms must move from: Historical agreements → performance-linked systems

Best-in-class:

  • Clear structure
  • Measurable conditions
  • Transparency


This creates:

  • Better control
  • Stronger partnerships
  • Improved negotiation outcomes

Mix Management

Not all growth is equal.

RGM focuses on: Where growth comes from

This requires:

  • Full margin transparency
  • Clear prioritisation
  • Targeted investment


Growth must shift toward high-value segments

Most portfolios are:

  • Too complex
  • Not value-driven


The goal: Reduce complexity without losing strategic value

Key is:

  • Structured evaluation
  • Clear role of each SKU
  • Controlled delisting

Sustainable value growth comes often from trading consumers up – not only raising prices

Requires:

  • Clear price tiers
  • Strong product logic
  • Channel fit


Premiumisation is a system – not a single innovation

Data & Tools

Effective RGM connects:

  • Financial data
  • Commercial data
  • Market data


The key gap: Lack of a unified view on value

Core KPIs: NSV (Net Sales Value) & Profitability

There is no “one tool”.

Success depends on:

  • Data quality
  • Usability
  • Integration into decisions


Tools must support decisions – not replace them.

The challenge is not technology – it is connecting fragmented data into a commercial reality

Best approach:

  • Start simple
  • Validate logic
  • Then automate

Execution & Change

RGM is not confrontation – it is structured value dialogue

Success comes from:

  • Transparency
  • Joint perspective
  • Clear logic

RGM fails without alignment.

Success requires:

  • Shared KPIs (NSV, not volume)
  • Aligned incentives
  • Visible quick wins


RGM becomes effective when it becomes the common language across functions.

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