What is Revenue Growth Management (RGM)?

Unlock your next phase of growth and maintain global compliance with this critical technology investment.
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What is Revenue Growth Management?

Revenue Growth Management (RGM) refers to a software platform that enables subscription businesses to acquire customers, grow and retain revenue, scale their financial operations, and achieve interoperability among critical systems — unlocking new growth opportunities while maintaining global compliance.

What are the core capabilities of a Revenue Growth Management platform?

A robust Revenue Growth Management platform requires depth in the following capabilities in order to deliver companies with the tools and infrastructure they need to maximize their revenue potential:

Subscription Management & Recurring Billing

The ability for a company to unlock revenue growth by creating, testing, and evolving its subscription-based products, services, and monetization pathways. Core Subscription Management & Recurring Billing capabilities also empower companies to provision products and offerings to the appropriate customers, raise and send invoices and receipts that comply with contract terms to customers, and process payments worldwide.

Pricing and Revenue Optimization

The ability for a company to discover its most effective monetization strategies by experimenting with, optimizing, and updating subscription pricing models (e.g. monthly access vs. usage-based), list prices, packaging (e.g. bundled or a-la-carte features), and discounting.

Global Payments

The ability for a company to accelerate time to value as it scales internationally by leveraging global payment capabilities and gateways with ease.

Revenue Recognition and Compliance

The ability for a company to report on all revenues (including revenue from recurring and one-time purchases) quickly, accurately, and in compliance with all global tax rules and other regulations, as well as to monitor business performance to surface any revenue recognition risk.

Churn Management & Retention

The ability for a company to mitigate and prevent both voluntary churn and involuntary churn, including solutions and strategies to prevent customers from cancelling their subscriptions (e.g. automated, personalized retention offers) and to prevent payment failures and recover failed payments (e.g. automatic payment retries).

Product Integrations

The ability for a company to integrate its RGM platform with its core finance stack and drive deep interoperability via rapid data synchronization, auditability, and extensibility. Core Product Integration capabilities also allow a company to integrate its RGM platform with the other critical systems, including ERP and accounting tools, CRM and Marketing systems, and data warehouses.

Analytics & Reporting

The ability for a company to mine and surface insights — including sales success, customer behavior, product usage, and market trends — from across its financial operations to better inform future product, marketing, and growth strategies.

Predictive & AI Growth

The ability for a company to leverage its vast trove of subscription data to drive future predictions, such as presenting the best incentives and offers to at-risk customers before they intend to cancel.

What are the key benefits that a Revenue Growth Management platform delivers to companies?

A Revenue Growth Management platform empowers companies to acquire customers, grow and retain revenue, scale financial operations, and integrate with critical systems across their organization.

Acquire Customers

By driving customer acquisition, RGM platforms typically deliver impact to metrics like gross customer acquisition, decreased customer acquisition cost (CAC), and decreased time-to-close.
They do this by empowering companies to:
  • Launch and iterate plans and products with ease.

  • Build and support freemium, trial, and/or paid offerings.

  • Deliver a wide range of subscription products and services that include both digital and physical offerings as well as multi-product bundles.

  • Experiment with, pinpoint, and support the best-performing pricing tiers, pricing models, acquisition strategies (product- vs. CPQ/sales-led), marketplaces, offers, incentives, coupons, and discounts.

  • Provide a self-serve experience for customers to manage and update their subscriptions (pause, cancel, add-on).

  • Expand into new markets with little overhead effort.

Grow and Retain Revenue

By driving revenue growth and retention, RGM platforms typically deliver impact to metrics like net revenue retention (NRR) and incremental retained revenue.
They do this by empowering companies to:
  • Run variant price testing.

  • Prevent customers from canceling with personalized retention offers.

  • Turn one-time buyers into repeat subscribers with online checkout flows.

  • Focus retention strategies on the customer cohort(s) with the highest LTV potential.

  • Automate collections and recovery of revenue at risk due to payment failures.

  • See trends in subscription and churn analytics.

Scale Financial Operations

By empowering financial operations to scale, RGM platforms typically deliver impact to metrics like annual recurring revenue (ARR) growth rate, as well as time required to close the books and complete monthly, quarterly, and annual financial reporting.
They do this by empowering companies to:
  • Provision features, products, and plans accurately.

  • Automate billing and invoicing on any subscription cadence.

  • Support unique flows and experiences for distinct business entities

  • Charge in multiple currencies

  • Streamline reporting across multiple entities and geographies

  • Recognize revenue quickly and easily to stay audit-ready.

  • Forecast with greater predictability and less overhead

  • Comply with new and changing tax laws, data privacy and security rules, and other requirements.

Integrate With Critical Systems

By integrating with other critical systems at a business, RGM platforms typically deliver impact to implementation speed, as well as overall time-to-value.
They do this by maximizing the value of an organization’s tech stack by empowering that organization to leverage rich data and insights from across the revenue lifecycle.

Ready to grow?

Learn more about how the Chargebee Revenue Growth Management offering can help your organization unlock the next phase of growth.
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