Repositioning insights as a revenue driver in times of cost-cutting
When economic uncertainty rises and organizations tighten budgets, Insights teams are often early targets for cost cuts. Experts from SKIM outline how Insights leaders can protect their teams by repositioning insights from a cost center to a revenue driver.
The risks of cutting research projects during volatile or uncertain times extend far beyond immediate budget savings. Without fresh understanding, businesses risk making critical decisions based on outdated assumptions – leading to misaligned pricing strategies, missing new opportunities, or launching products that no longer fit with evolving consumer needs.
Research conducted by SKIM shows that organizations that continue strategic insight investments during economic uncertainty often emerge stronger, staying attuned to changing behaviors while competitors operate without this visibility.
Reposition insights as a revenue driver
For leaders of Insights teams, the best way to increase impact and influence is to show the ROI of insight projects. Frame insights as an investment in risk mitigation and revenue growth rather than an expense. Shift conversations from “how much does this cost?” to “how much could this save – or earn – us?”
Illustrate the cost of inaction with compelling scenarios: “If we guess wrong on pricing, we could lose X% of our margin” or “Launching with the wrong value proposition could reduce campaign ROI by Y%.” Share real examples where insights prevented costly mistakes or uncovered unexpected growth opportunities.
Three approaches for higher impact
When resources are constrained, success hinges on smart, strategic investment decisions. Start by clearly linking insight objectives to business outcomes. This alignment improves the quality of the research and proves ROI. Use these three strategies to maximize insight value and drive smarter decisions – all while staying within budget:
1.Leverage existing data with expert analysis
Before investing in new research, tap into the rich insights hidden in your existing data. For example, sales data, transaction records, and pricing history can reveal insights on elasticity, promotional effectiveness, and portfolio optimization opportunities. Partnering with experienced insights partners can unlock additional value from this existing data through fresh analytical perspectives and, as needed, additional advanced analytics.
However, historical data has limits and past trends may not predict future behavior, especially during volatile periods. When past trends fall short, complement internal data with forward-looking research to explore emerging needs and opportunities with your audience.
2. Embrace modular, scalable approaches
Modern insights don’t require massive upfront investment. Modular designs allow you to start small by gathering essential insights first, then layering in depth as budgets allow. For example, begin with price sensitivity, then add segmentation or geographic modules as needed.
Leading tools in the market can offer fast, high-impact insights which are ideal when resources are tight. This modular approach reduces risk while maintaining flexibility – supporting quick decisions now, with room to grow later.
3. Focus on revenue-centered research
Prioritize insights that directly inform key revenue decisions – from pricing to product positioning. Use methods that reveal how choices are made, what drives willingness to pay, and how different value propositions are responded to. Choice-based methods like conjoint analysis offer precise, actionable guidance grounded in real behavior that will have measurable impact on the bottom line.
About the authors: Jessica is Global co-lead of SKIM’s Revenue Management practice. Alexis Sacino is a Senior Research Manager at the firm. Both are based in the US.
