For many years the extent of some customer managers’ understanding of the financial drivers was limited to attending a Finance For Non-Finance Managers workshop. Designed to give them an in-depth understanding of the internal P&L, they succeeded in delivering the knowledge of where costs in the business lay and how they could play their role in managing them better.
As retailer’s demands grew increasingly sophisticated and with the ever constant challenge of the JBP, suppliers established specialist Revenue Management Departments to meet the increased financial awareness challenge. These teams provide the specific capability to understand the revenue drivers from the supplier and retailer perspective and knowledge of how to influence them to deliver the optimum outcome.
Now with a retail landscape where every inch of profitability has to be fought for and where growth can only come from adopting a focus on mutual growth for both parties, it’s no longer enough for revenue driving skills to lie within specific teams, the capability must be spread amongst the entire customer management team. As ultimately they have the accountability to make the right decisions that drive a return on every pound spent, for both you and the customer, or to put another way, manage their customers as if they owned the business.
To meet this challenge we’ve developed a Revenue Management training programme that fully immerses customer managers with not only the key drivers of revenue… mix management; conditionalised terms; cost accountability; delivering the price agenda; and managing promotions for profit… but, also the fundamental understanding of the role they play for both parties: supplier and retailer. An understanding that is increasingly the only way supplier and retailer relationships will thrive.
To really land and enable the delegates to visualise each of the concepts we use a virtual customer model. Tailored with your key sku’s and data, delegates can select scenarios and immediately model the impact at every level of the P&L, for both you and the customer. For instance, what does the impact of changing the mix of products within a customer have on both yours and their profitability? And how can you flex it to maximise the outcome for both?
The theme running throughout the workshop is to manage their customers, “…As If You Own It…” i.e. the business they work for. As this mind-set ensures customer managers challenge each investment decision through the lens of a personal connection, rather than it being someone else’s money and of reduced importance.
We’ve now run “…As If You Own It..” with numerous clients and across more than a dozen markets. To find out more and how you and your teams would benefit from our Revenue Management programme contact us at firstname.lastname@example.org, and we’d be delighted to discuss with you how we can get your customer managers managing the business “…as if they owned it…”