Making the Case for Research Amid Budget Cuts

It’s no secret that the economy has lost some momentum. Consumer confidence has remained strong, but the IMF projected global growth to fall from an estimated 3.4% last year to 2.8% in 2023.

In our research practice, we’re seeing this play out in a shift toward more short-term, problem-focused research (“We need to fix this specific issue we know about.”) than exploratory, innovation-driven studies (“What new needs could we meet for our customers?”), which is still better than the more extreme response to an economic downturn, where research budgets get slashed entirely.

Sadly, many business leaders share the misguided belief that insights are a “nice-to-have” rather than a critical part of remaining competitive.

“It’s even more important for brands to stay curious through uncertain times.”

At Inquisitive Insights we believe that it's even more important for brands to stay curious through uncertain times. And the data backs us up: Data-driven businesses are 23 times more likely to acquire customers, according to McKinsey.

Not only that, but those businesses are six times more likely to retain their customers, and 19 times more likely to be profitable.

Brands who continue to invest in understanding and empathizing with their customers are the brands that will continue to win. Consumer insights are not static. Needs change. Technology spawns new behaviors. Brands clinging to the status quo are not paying attention. As one of my favorite composers wrote, There is no more status quo.

Still, we realize budgets do shrink along with growth. Which makes it even more important for leaders to get the most from a limited research budget by partnering with experts. You don’t just want generic data about faceless consumers; you want insights about your target audience that will help you make future-focused decisions. That’s where growth comes from – and that’s always a good investment.