10 Steps to Bring Your Revenue Growth Management to Life in 2025

Revenue and sales growth ranks second among challenges at 39% for business leaders in 2025. The problem isn't a lack of effort. It's that most companies are still using outdated playbooks that treat pricing as their only weapon.

Consider this reality: while your competitors raise prices hoping for quick wins, consumer behaviour has fundamentally shifted. People are trading down, switching brands, and delaying purchases like never before. Meanwhile, the companies that are actually growing revenue have discovered something different.

They've moved beyond simple price optimisation to master what McKinsey calls revenue growth management (RGM). This approach combines four strategic levers that, when appropriately implemented, can deliver 4-7% profit margin increases.

However, successful RGM requires structured planning and precision - not just guesswork. To help out, we've outlined ten steps that will help you execute revenue growth management in an efficient way to achieve measurable growth.

What is Revenue Growth Management?

McKinsey & Company describes RGM as the adoption of strategies across assortment, promotions, trade management, and pricing to drive sustainable and profitable growth.

Although it’s not a new concept, the traditional approach is more focused on price optimisation, which is no longer enough. Price optimisation identifies the best point to attract buyers, stimulate demand, and maximise profits.

But in today’s environment, where consumer behaviour is shifting rapidly and markets are reshaped by technology, strategy requires more depth.

RGM has therefore evolved into a holistic discipline. It now combines data, analytics, and consumer insights to align every commercial decision, from portfolio design to promotional strategy, with revenue goals.

While hospitality and airlines have long applied RGM, industries such as consumer packaged goods (CPG), retail, and even digital-first businesses are increasingly making it a core capability.

RGM ensures companies are not only adjusting prices but also optimising the entire value proposition to secure consistent, profitable growth.

Steps for successful implementation of revenue growth management

Modern RGM strategy should be based on the concept that not all customers are equal. Given the rapidly changing scenario, retailers' and manufacturers' opportunities constantly evolve.

In these uncertain times, a proper strategy is all it takes to manage revenue growth in business. Mastering and executing a revenue strategy starts with a plan. Our team at GrowthJockey has developed strategies for successful revenue growth management.

Let's look at the key steps that can help you in developing an effective strategy for revenue growth management in India.

1. Assess the market

A strong RGM strategy starts with a deep understanding of the market. This means going beyond surface-level research and examining the whole landscape of demand, competition, and external forces that shape growth opportunities.

Key questions to focus on include:

• Where is demand currently coming from, and how is it evolving?

• What external factors, like economic, cultural, or regulatory, could shift consumer spending?

• How are competitors positioning their products, pricing, and promotions?

• Which consumer trends or behaviours are emerging that could influence category growth?

Companies that invest in market assessment gain a clear view of both risks and opportunities. This foundation enables them to set realistic revenue goals, design targeted strategies, and allocate resources more effectively.

2. Segment customer base

Segmenting customers based on their demographics, shopping patterns, geography, and other characteristics can help the company define its target audience.

This is particularly important in the digital space when customers spend a considerable time online, and companies can utilise this to their advantage.

Segmenting the customer base can help companies better identify the needs of customers, their preferred mode of shopping, and other preferences, giving the company an edge over competitors.

3. Price optimisation

Price optimisation is analysing customer and market data to determine the best price for a product or service.

What customers think about a product, including its popularity and quality, is considered to set a fair price. This prevents fluctuation, allows customers to enjoy stability, and protects margins.

However, companies today need to move beyond fair pricing for revenue growth management CPG. They must focus on dynamic pricing and elasticity analysis to understand how even small price changes can affect demand and overall revenue optimisation.

For example, a personal care brand might track how demand for a moisturiser changes across seasons. It may measure the effect of discounts during festive sales and compare competitor prices on leading e-commerce platforms. Using elasticity models, the brand can identify which products tolerate a higher price without losing volume and which ones need promotional support to grow.

4. Design promotions and trade investments

Promotions and trade investments directly influence both consumer demand and retailer relationships. They shape how often customers buy, which products they choose, and how retailers prioritise shelf space.

When managed poorly, they drain margins. When managed effectively, they strengthen brand visibility, win retailer support, and unlock incremental growth.

Here's how to effectively design your promotions and investments for revenue growth management CPG:

• Measure impact: Track which promotions attract new customers versus those that only discount existing sales.

• Test depth of discount: A smaller cut may drive similar demand as a deeper one, preserving profitability.

• Align with objectives: Promotions should serve clear goals such as volume lift, trial generation, or retailer partnership support.

• Review ROI: Regularly evaluate if trade investments contribute to revenue growth or just increase cost.

5. Apply AI for real-time insights

AI provides real-time insights, one of the most critical factors driving the need to adopt a new strategy for RGM. From different customer insights to tracking price ranges and marketing trends, AI can change your management strategy for revenue growth.

AI helps gather the correct data set by noticing patterns and trending insights. It can monitor the impact of price changes, the effectiveness of discounts, and actions taken by visitors, and show suitable ads based on customer segments.

By generating these data, the company can focus more on the channels or the customers that are more active and generating revenue.

According to a study by Boston Consulting Group, automating pricing rules by revenue management with AI can increase revenues by up to 5% in less than nine months.

6. Set revenue KPIs and performance benchmarks

While planning a strategy, it's essential to set KPIs and performance indicators to create discipline, track effectiveness, and tweak strategies when they are not performing. Without them, companies risk chasing volume without protecting margins or profitability.

Here are the KPIs and benchmarks that you can focus on:

• Gross margin growth: Evaluates if pricing and promotions improve profitability.

• Revenue per customer: Tracks whether strategies increase value from existing customers.

• Channel and region performance: Highlights which areas contribute most to growth.

• Promotional ROI: Measures whether trade spend is delivering incremental sales.

7. Revamp marketing strategy as per consumer needs

A marketing strategy must evolve with customer expectations. With that, you get to build stronger connections, improve campaign efficiency, and drive growth more reliably than generic, one-size-fits-all approaches.

Here are some ways to achieve this:

• Refine audience targeting by using behavioural and demographic insights to identify high-value segments.

• Personalise communication so campaigns address real customer motivations, not broad assumptions.

• Strengthen digital presence across channels where consumers now spend most of their time, from social platforms to e-commerce.

• Optimise content and messaging to highlight relevance - whether value, convenience, or lifestyle fit.

• Monitor consumer sentiment continuously to adapt quickly when needs, expectations, or market conditions shift.

8. Strengthen supply chain resilience for revenue optimisation

A robust supply chain is crucial for optimising revenue. Ensuring that products are always in stock directly impacts your ability to meet customer demand and maintain sales momentum. During disruptions, such as those experienced during the pandemic, a resilient supply chain can prevent stockouts, lost sales, and customer attrition.

By focusing on supply chain resilience, you can protect and optimise your revenue streams, making it a critical component of your revenue optimisation strategy

9. Integrate cross-functional teams into RGM decisions

Revenue growth management is not a standalone activity. Pricing, promotions, product, and channel choices touch almost every department. Which means decisions must include perspectives from marketing, sales, finance, and supply chain to avoid fragmented execution.

So, establish cross-functional forums and communication channels where leaders from different departments can collaborate. Also, assign clear ownership for decisions, ensuring accountability across departments.

When teams collaborate on RGM, it reduces conflicts, speeds up decisions, and creates stronger results.

10. Build long-term RGM capabilities

Revenue growth management delivers the strongest impact when it is treated as a discipline, not a short-term investment. Companies that build long-term capabilities create consistency, reduce dependency on individual leaders, and respond faster to changing markets.

This long-term discipline also ensures revenue optimisation, because decisions are measured against profitability and sustainability rather than short-term wins.

Some of the ways to strengthen long-term capability include:

• Invest in training to equip teams with advanced skills in pricing, analytics, and market planning.

• Adopt the right tools and systems to track performance and simulate scenarios.

• Set decision rights so accountability is clear across functions and levels.

• Build a governance framework that ensures revenue strategies align with broader business objectives.

Defining business growth that lasts!

When done right, revenue growth management ensures that your growth is sustainable and not just reactive.

However, achieving this requires structured planning, reliable data, and continuous monitoring of performance. Businesses need to align teams, track consumer behaviour, and adjust strategies with precision.

But many companies, especially startups, struggle with limited resources, fragmented insights, and rapid market changes. These challenges often lead to misaligned pricing, inefficient promotions, or missed growth opportunities.

This is where GrowthJockey comes in. As venture-building experts, we combine AI-driven technology, deep market insights, and tailored growth strategies to turn RGM from a concept into a measurable impact. With our support, businesses can build discipline into revenue planning and scale with confidence.

So, ready to make RGM a catalyst for scale? Let’s build your future together.

FAQs on revenue growth management

1. How does revenue growth management deliver profitability?

RGM aligns pricing, promotions, and product decisions with profit goals, rather than focusing solely on volume. By analysing elasticity, trade spend, and consumer behaviour, companies can identify which decisions protect margins while still fuelling growth.

2. What challenges do companies face when implementing RGM?

The biggest hurdles are fragmented data, limited analytical capabilities, and a lack of alignment across teams. Many organisations also rely too heavily on promotions or outdated pricing models. These gaps require investment in data tools, skilled teams, and clear ownership of decisions.

3. Is RGM relevant for startups and smaller businesses?

Yes. While often associated with large consumer companies, RGM principles apply to any business looking to grow profitably. Startups can benefit by using simple segmentation, tracking customer response to price changes, and allocating marketing spend more strategically.

4. What are the four pillars of revenue growth management?

The four pillars of RGM that ensure consistent and sustainable growth include:

• Pricing: Setting the right price to balance consumer value and profitability.
• Promotions: Creating offers that lift sales without hurting margins.
• Product assortment: Offering the right mix of products for consumer demand.
• Trade management: Optimising retailer partnerships and trade spend for better returns.