Implementing revenue growth management plans: The common pitfalls

Alignment on revenue growth management (RGM) plans can often feel like a constant internal battle of wills and competing opinions. Many commercial leaders ask: 

These are just some of the recurring frustrations our clients share when discussing how best to execute their RGM strategies. 

1. Organizational misalignment 

A significant proportion of negotiations fail due to a lack of internal alignment. As RGM sits at the intersection of strategy, finance, marketing and sales, conflicting priorities frequently arise. Disagreements about ambition levels, execution approaches or even fundamental questions like, “What happens if the other party says no?” can derail progress. 

This challenge is amplified when dealing with international customers or buying alliances. Local teams often work in silos, creating inconsistent approaches and execution levels across markets. 

Another frequent issue is timing. Companies may spend months refining RGM strategies, only to leave insufficient time for sales teams to build and stress-test effective negotiation plans. This results in lower confidence and weaker execution at the table. 

2. What’s in it for the retailer?

RGM plans are often clear from the supplier’s perspective, but they can fail to answer a critical question: Why should the customer care? 

If a strategy doesn’t articulate how it benefits the customer and their shoppers, alignment becomes difficult. Moreover, supplier strategies sometimes directly conflict with the customer’s commercial priorities, leading to friction and the perception that, “You’re not listening to us.” 

3. Weak negotiation planning and mindset 

Robust negotiation preparation is essential to successful RGM execution. Too often, teams spend their energy on pricing strategy development but begin negotiation planning too late. 

Without thorough preparation, teams can become reactive under pressure, making unnecessary concessions or escalating tensions. Confidence in the first few negotiation moves is common, but what about plan B or plan C if the customer responds with threats or punitive action? Are these scenarios anticipated and aligned internally? Do they still ladder back to the original RGM ambition? 

Teams under pressure must be prepared to defend RGM positions and manage conflict with confidence. 

4. Translating data into a compelling value story 

RGM is sometimes seen as a data-heavy, siloed function that speaks a different language. As a result, the customer narrative can get lost in overly technical messaging, leaving sales teams struggling to translate insights into compelling, commercially relevant stories. 

If the value story is not simple, clear and tailored to the customer’s priorities, even the best analysis will fail to land. 

Overcoming the pitfalls 

1. Align early on objectives and walkaway points 
Front-load KPI setting and ensure full cross-functional alignment early in the process. This clarity builds confidence and ensures negotiation plans are developed in time. Late alignment often leads to last-minute pressures that undermine the original strategy. 

2. Define rules of engagement and escalation paths 
Set clear KPIs and identify where flexibility exists. If there’s a risk of moving beyond agreed boundaries, have a forum in place to make fast, aligned decisions. 

3. Build RGM plans through a retailer lens 
Embed customer strategy, priorities and timing into your RGM plans. Communicate in their language and make the, “what’s in it for them” clear and compelling. 

4. Plan for resistance 
Anticipate the challenges internally and externally that could arise and prepare mitigation strategies. Planning for failure builds resilience. 

5. Create a true business partnership between RGM and sales 
Integrate RGM more closely into sales business units. Joint ownership fosters shared goals, mutual understanding and stronger execution. 

6. Start negotiation preparation sooner 
Negotiation planning should begin as soon as the RGM strategy is approved. This includes a pre-negotiation communication plan and detailed playbooks for different negotiation scenarios. 

7. Simplify the data into a clear value story 
Buyers are time-poor and manage many suppliers. Condense your data into a simple, compelling narrative that highlights the retailer and shopper benefits clearly and quickly.