type
sm-banner
gradient-overlay
dark
background-image
Low angle looking at urban skyscrapers with financial overlay
background-image-mobile
Low angle looking at urban skyscrapers with financial overlay
eyebrow
Article
title
7 forces reshaping profitable growth
subtitle
Why growth leaders are being measured on margin, not just revenue
date
October 29, 2026
breadcrumb

Home
Insights

Services
Business Strategy & Operations

text-color
light
Bank building icon with a dollar symbol and columns, representing financial services or banking.
Growth leaders are now judged on margin as well as revenue, changing how budgets are approved.
Line Illustration of human and a robot
Only 49% of martech tools are actively used, and AI returns remain difficult to prove.
AI hand tapping a phone screen with a chart, representing mobile data monitoring technology.
Buyers do most of their research alone, so the revenue engine has to work before first contact.
  • Management consulting
  • Strategy and planning

Profitable growth is being judged by a new standard: what it costs to produce. For many organizations, margin performance increasingly depends on how effectively marketing, sales, service and the technology supporting them operate as a connected revenue engine. This is the focus of front-office transformation: aligning customer-facing functions, processes, data and technology to support more profitable growth. Growth leaders are still accountable for revenue, but the conversation about how that revenue is produced happens now with finance in the room.

Seven forces are changing how today’s organizations achieve profitable growth. These forces are connected — treating them as separate problems is a common reason commercial investments underperform.

1. Revenue growth and margin are now judged together

Growth spending has not slowed, but the terms attached to it have tightened. Gartner reported in May 2025 that 87% of chief financial officers were likely or very likely to spend cash on organic growth, based on a survey of 110 finance leaders. The appetite for growth is there. What has changed is the standard of proof.

The pressure shows up most clearly in marketing. Gartner’s 2025 CMO Spend Survey found that marketing budgets have flattened at 7.7% of company revenue, while 59% of chief marketing officers say they do not have enough budget to execute their strategy. Flat budgets and rising expectations mean growth leaders are competing for the same dollars as operational investments, and they are being asked to defend them the same way.

The practical effect is that the business case now matters as much as the plan. Commercial proposals that arrive without a margin story tend to stall, which is why front-office transformation increasingly focuses on how changes across marketing, sales, service, data and technology can improve revenue performance and margin.

2. Revenue leaks where pricing and process meet

Most revenue loss is not dramatic. It accumulates quietly through discounting, contract terms, billing errors, missed renewals and gaps in the quote-to-cash process. A 2025 systematic review of 89 studies by Patabendige and Hopkins traced leakage across these exact points, and found it concentrated in the handoffs between commercial and finance systems rather than within any one function.

Pricing is one of the most powerful commercial levers available to organizations because price changes affect profitability immediately. Unlike demand-generation initiatives that may take time to influence revenue, pricing decisions can directly affect margin, making pricing discipline a critical component of profitable growth.

Taken together, these sources of leakage reframe the value of pricing or renewals initiatives. Recovering revenue already earned can be one of the fastest ways to improve margin because it requires no additional demand.

benton_joshua.jpg

Most revenue leakage doesn't come from a lack of demand. It comes from the breakdowns between pricing, sales, contracting, billing and renewals. The companies that find and fix those gaps often uncover margin that was already sitting in the business.

Joshua Benton, Principal, RSM US

3. Alignment is becoming a growth capability, not a meeting

As organizations focus more closely on profitable growth, alignment across marketing, sales and customer success is becoming a business capability rather than a management exercise. Revenue goals, customer retention and margin performance are increasingly influenced by how effectively these functions work together, share information and make decisions.

Revenue operations provides a structural response to that challenge by creating shared accountability for the data, processes and technology connecting customer-facing teams. Rather than relying on coordination across separate functions, organizations are establishing common measures and clearer ownership across the customer lifecycle.

Revenue operations, in this context, refers to a single accountable owner overseeing the data, processes and technology that span marketing, sales and customer success. It replaces coordination with shared ownership. That shared ownership helps organizations improve profitable growth by connecting pipeline activity, customer retention and margin performance through a common set of measures.

4. AI investment has yet to produce measurable returns

AI investment has yet to produce measurable returns for many organizations because deployment has moved faster than workflow redesign. Forbes Research surveyed 1,075 C-suite executives in October 2025 and reported that fewer than 1% had achieved significant returns from AI, while 53% reported returns of 1% to 5%.

The findings point to an execution challenge: Technology alone rarely creates value without corresponding changes to processes, governance and accountability. Organizations that generate measurable results are redesigning how work gets done rather than treating AI as a stand-alone initiative.

The gap between AI adoption and business value often comes down to execution. The RSM Middle Market AI Survey 2026 found that 86% of respondents had integrated AI into their operations, yet only 36% had fully embedded it across core processes. The findings suggest that adoption alone is not a meaningful measure of value. Organizations will likely generate more measurable impact when governance, workforce readiness, performance measurement and integration advance alongside deployment.

Director, Management Consulting

The organizations seeing commercial returns from AI aren't simply deploying new technology. They're redesigning workflows, decision making and accountability so AI removes friction from the revenue engine instead of adding another layer to it.

Lucas Tasa, Director, RSM US

5. Half the technology behind profitable growth sits unused

Marketing technology (martech) utilization has fallen to 49%, according to Gartner’s 2025 Marketing Technology Survey, which also found that only 15% of organizations qualify as high performers in using the technology they own. Martech accounts for close to 22% of total marketing spend.

Read those figures together, and the conclusion is uncomfortable. Roughly a fifth of the marketing budget buys technology capabilities that are half used, in the same year that 59% of marketing leaders say they lack sufficient budget to execute their strategy. For many organizations, the next increment of commercial capability is already paid for.

Improving utilization is often a lower-cost place to start than purchasing more technology. It requires stronger adoption, process design and data discipline rather than additional licenses, making it a practical front-office optimization opportunity.

6. Customer experience shows up on the income statement

Customer experience is increasingly influencing buying, retention and expansion decisions. Salesforce research found that 80% of customers consider the experience a company provides as important as its products or services, and 85% expect consistent interactions across departments.

That second expectation is where many organizations struggle. Consistency across marketing, sales, service and billing depends on shared data and processes rather than any single customer-facing function.

Organizations that create a consistent customer experience are better positioned to retain customers, expand relationships and improve operating efficiency. When customer data, commercial processes and service delivery work together, customer experience becomes more directly connected to financial performance. Experience improvements that support growth and efficiency are often easier to justify because they contribute to multiple business objectives.

7. Buyers are making decisions before speaking with sellers

Influence has to move earlier because the buying process increasingly begins without a seller. Gartner reported in March 2026 that 67% of business-to-business buyers prefer a rep-free experience and 45% used AI during a recent purchase. By the time buyers speak with a seller, digital content and AI-assisted research may have already shaped their requirements and perceptions.

A preference for rep-free research does not mean sellers no longer matter. Gartner also found that buyers who use digital tools alongside a seller are 1.8 times more likely to complete a high-quality deal than those who buy independently. The task is not to withdraw sellers but to engage them at the points where they can improve the outcome.

For growth leaders, this makes the quality of self-directed content a commercial variable rather than a marketing one. If AI assistants are now part of the buying process, the material they draw on needs to be clear, specific and attributable.

For the revenue engine, the value of connected content, data and seller engagement is increased, guiding buyers without adding unnecessary cost to the sales process.

Director, Management Consulting

Buyers no longer experience your company one function at a time. A connected revenue engine reinforces the same value story throughout every interaction, from marketing through service, creating a more efficient path to growth.

Lucas Tasa, Director, RSM US

These seven forces share one root. Growth, margin, technology, experience and buying behavior are often managed by different teams, supported by different systems and measured in different ways. And the losses appear in the seams between them. That is why point solutions disappoint: a customer relationship management system implementation without sales optimization, an AI deployment without workflow redesign, or a customer experience initiative without shared data and process may fix one seam and miss the rest.

Front-office transformation does not have to begin as an enterprise-wide overhaul. A practical sequence of focused changes can sit within the growth strategy, with each step addressing a measurable source of revenue or margin loss.

Start by quantifying leakage in pricing, renewals and quote-to-cash, because recovering that margin requires no new demand and can help fund what follows. Then improve utilization of the existing technology before buying more. Finally, assign one owner accountability for the data and processes spanning marketing, sales and service. Each step makes the next one more measurable, turning a growth plan into an investment case finance can evaluate.

If your organization is evaluating where growth, margin and customer experience have become disconnected, consider assessing the revenue engine as a whole. Connect with our team to explore the data, processes and operating-model decisions that may reveal where commercial performance is losing revenue or margin.

Frequently asked questions

What is front-office transformation?
Front-office transformation aligns the customer-facing parts of a business, including marketing, sales and service, with the data, processes and technology supporting them. Its purpose is to improve how the organization produces revenue, supports margin and delivers customer value. Unlike a stand-alone marketing, sales or technology initiative, front-office transformation addresses how those capabilities work together as a connected revenue engine.
Where do companies lose the most revenue without realizing it?
Most unrecognized revenue loss happens in pricing and in the handoffs between commercial and finance systems. Discounting practices, contract terms, billing accuracy, renewal timing and the quote-to-cash process can each leak small amounts that rarely appear as a single line item. Pricing decisions often have a disproportionate impact on profitability, and research across distribution and industrial sectors has consistently shown that small pricing improvements can generate significantly larger gains in earnings. That illustrates how much margin can be hidden in routine commercial decisions.
What is revenue operations, and does it improve results?
Revenue operations (RevOps) assigns one owner accountability for the data, processes and technology spanning marketing, sales and customer success. Its purpose is to create shared visibility and accountability across the customer lifecycle so customer-facing teams work from common data, processes and measures. By reducing friction among functions and improving how commercial decisions are coordinated, RevOps can help organizations strengthen connections among revenue performance, customer retention and profitability more effectively.
How do you measure return on AI investment in sales and marketing?
Measure AI investment against the commercial outcome the AI is meant to change: Seller time returned to selling, conversion rate, forecast accuracy or cost to serve, rather than adoption or usage. In 2025, Forbes Research reported that fewer than 1% of executives had seen significant AI return, suggesting that many organizations still struggle to produce measurable financial outcomes from AI initiatives. Returns become visible when AI removes steps from the revenue process and redirects the freed capacity toward higher-value commercial work.
Section Title
Section Subtitle
Layout
feature
Pages
  • /insights/services/business-strategy-operations/revenue-leakage-silent-growth-killer
  • /insights/services/business-strategy-operations/strategic-planning-mistakes-costing-companies-profitable-growth
  • /insights/services/business-strategy-operations/turn-strategy-into-results-when-growth-stalls
Cards per Row
3
Number of Rows
1
Order By
date
Sort Order
descending
Show CTA Button
true
Override CTA Label
Load more
Carousel On Mobile
true
Carousel Swiper Text
Link Target
Same Tab