Revenue growth management has moved from a niche analytical function to a core part of the commercial team in most FMCG and CPG businesses. This article explains what RGM covers, why demand for RGM talent has grown, how teams are structured, and what to look for when you hire.
Why demand has grown
For several years, price did most of the work. McKinsey notes that in 2022 consumer goods prices rose by more than 10% while volumes fell, and that companies leaned heavily on headline pricing. With inflation easing, that is no longer enough. McKinsey argues that the best performers can achieve 1.2 to 1.5 times net price realisation above baseline inflation by using all the levers, not just list price.
Management teams that have professionalised RGM report the payoff. L.E.K. Consulting cites CPG leaders attributing 10% to 15% revenue growth and 50 to 200 basis points of net margin expansion to building the function. L.E.K. also estimates that around 72% of promotions destroy value, and that almost 60% of CPGs feel they lack full coverage of key RGM analyses. That gap between opportunity and capability is why RGM hiring has accelerated.
Regulation adds pressure in the UK. Government guidance set out restrictions on volume price promotions such as "buy one get one free" for products high in fat, sugar or salt, applying to medium and large retailers, alongside location restrictions in force since October 2022. Rules like these force businesses to rethink promotional plans and pack-price architecture, which is RGM work.
The five levers of RGM
| Lever | The question it answers | Typical analysis |
|---|---|---|
| Pricing | What should we charge, by product and channel? | Price elasticity, competitor price gaps, price ladders |
| Promotions | Which promotions pay back? | Post-event evaluation, promotional ROI, baseline modelling |
| Pack-price architecture | Which pack sizes and price points should we offer? | Shopper need states, price-per-unit ladders, portfolio gaps |
| Mix | How do we sell more of our most profitable products? | SKU profitability, assortment, range rationalisation |
| Trade terms | Are we paying customers for the right things? | Trade spend effectiveness, pay-for-performance terms |
How RGM teams are structured
There is no single model. L.E.K. describes three common set-ups: a stand-alone central team, RGM embedded in business units, or a hybrid with a central centre of excellence supporting embedded analysts. Smaller businesses often start with one RGM manager working across sales and finance; larger ones build a head of RGM with pricing, promotions and analytics leads beneath them.
McKinsey also points to closer integration between sales (pricing and trade terms) and marketing (including retail media spend), so that the business sees all of its commercial investment in one place. That changes the hiring profile: RGM leaders increasingly need to influence marketing as well as sales.
Where the talent comes from
Experienced RGM professionals are scarce, so strong hires often come from adjacent backgrounds:
- Commercial finance: strong on P&L and trade spend, may need to build shopper and customer understanding
- Insight and analytics: strong on data and modelling, may need commercial confidence with sales teams
- Category management: understands the shelf and the retailer, may need deeper pricing analytics
- Consultancy: structured problem-solving and RGM frameworks, may need hands-on experience of running a plan
- Established RGM teams: the most direct fit, and the most competed-for
Common mistakes when building RGM
- Hiring an analyst and expecting a commercial leader: the role needs influence as well as models
- Starting with software before data: tools are only as good as the EPOS, trade spend and cost data behind them
- Keeping RGM away from customers: insight that never reaches a joint business plan changes nothing
- Measuring activity, not results: track price realisation, promotional ROI and margin, not the number of models built
- Relying on manual spreadsheets for too long: L.E.K. estimates around 40% of CPGs still do
What to look for
The best RGM people combine analytical depth with the confidence to change a sales team's mind. Look for someone who has built or used elasticity models, evaluated promotions after the event and, crucially, persuaded a key account team or a buyer to change course on the back of the analysis. Test how they explain a model to a non-specialist: if they can't, the insight will never reach the customer.
Seniority matters too. A first RGM hire in a mid-sized business needs to be hands-on enough to build the models and senior enough to stand up in a commercial leadership meeting. In a larger business with an established team, the gap is more often in leadership: someone who can set priorities across categories and channels, develop analysts and keep the work tied to customer plans.
Hiring your first RGM lead:
- Define the scope. Which levers, which channels and which customers will the role own in year one?
- Decide the reporting line. Commercial director, finance director or a joint line; each sends a different signal.
- Fix the data first. Make sure EPOS, syndicated and trade spend data are accessible; RGM hires leave quickly without it.
- Be open on background. Consider finance, insight and category candidates, not only people with RGM in their title.
- Test with a case. A short pricing or promotion case, presented to a commercial audience.
- Plan the first 90 days. A visible quick win, such as a promotion review, builds credibility with sales.
RGM sits closely with key account management and category management, and at senior level often reports to the commercial director. We have not found a reliable published salary benchmark specific to RGM roles; our salary guides cover the adjacent commercial roles.
Revenue growth management: common questions
RGM is the discipline of growing profitable revenue through evidence-based decisions on pricing, promotions, pack-price architecture, mix and trade terms, by channel and customer. It is also called net revenue management.
They analyse pricing, promotions, mix and trade spend, recommend changes, and work with sales, marketing and finance to put them into customer plans. The role combines modelling with commercial influence.
The five core levers are pricing, promotions, pack-price architecture, mix and trade terms. McKinsey groups them as pricing, promotions, assortment and trade investment.
In practice they describe the same discipline. Some companies use NRM to emphasise net revenue after trade spend; others use RGM to include mix and portfolio decisions. Check the scope, not the label.
Analytical skills (elasticity, promotional evaluation, P&L), commercial understanding of customers and channels, and the communication skills to persuade sales teams and buyers to act on the analysis.