Driving Sustainable Growth in RGM: Insights on Pricing, Promotions, and Team Building
Effective Revenue Growth Management (RGM) in the CPG industry requires balancing financial goals with customer satisfaction through smart pricing and promotional strategies. In this interview, AIS Soto, a seasoned RGM executive with over 25 years of experience, shares his approach to leveraging data for strategic decision-making, building skilled RGM teams, and implementing sustainable growth strategies.
Crafting Data-Driven Pricing and Promotion Strategies
AIS Soto explained that the foundation of a successful RGM strategy is understanding and optimizing pricing and promotions based on consumer, shopper, and market insights. By analyzing this data, companies can establish effective price points and promotional tactics that resonate with their target audiences, without compromising on profitability.
AIS emphasized that data-driven insights allow RGM teams to anticipate how pricing adjustments or promotional campaigns will impact both revenue and market share. This approach supports informed, strategic decisions that balance growth with brand value.
The Art and Science of RGM: Building a Skilled Team
AIS believes that RGM is both an art and a science, requiring teams with strong analytical abilities and an intuitive understanding of market dynamics. He highlighted the importance of developing RGM capabilities internally, ensuring that team members are equipped with both numeric skills and commercial insight.
In his experience, successful RGM professionals are those who bridge the gap between data analysis and strategic storytelling. This balance enables them to present complex data in a compelling way, making it easier to gain buy-in from sales, marketing, and finance teams.
Leveraging Pricing Elasticity to Drive Profitable Growth
Pricing elasticity is a key component of any RGM strategy, according to AIS. By understanding how price changes impact demand, companies can make more precise adjustments that maximize revenue without losing customers. AIS also discussed the importance of cross-elasticities—analyzing how different products in a portfolio influence each other’s demand and price points.
He highlighted that elasticity models need to be updated regularly to reflect shifts in market conditions, such as new competitors or economic changes. Tools that integrate elasticity data enable RGM teams to stay agile, responding quickly to market fluctuations and optimizing their pricing and promotion strategies accordingly.
Watch the Full Interview to Discover More
AIS Soto’s expertise offers valuable guidance for companies seeking to enhance their RGM strategies through data-driven pricing, optimized promotions, and team-building. Watch the full interview on YouTube for deeper insights into his approach, and learn how to leverage data to create impactful RGM strategies.
Request a demo from Wise Athena to discover how our AI-driven tools can support your RGM initiatives with actionable data insights.
