--- title: "Three Ways to Survive a Recession: Insights on Pricing and Productivity" description: "There are three ways to survive a recession: slash, sweat or be smart. Here are the advantages, challenges and practical considerations of each." image: https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/survive_recession.png --- close ## Ready to level up your insights? Get ready to streamline, scale and supercharge your research. Fill out this form to request a demo of the InsightHub platform and discover the difference insights empowerment can make. A member of our team will reach out within two working days. close ## Cost effective insights that scale Quality insight doesn't need to cost the earth. Our flexible approach helps you make the most of research budgets and build an agile solution that works for you. Fill out this form to request a call back from our team to explore our pricing options. [![FlexMR logo](https://www.flexmr.net/skin/images/images-custom/2b221b67-b091-4584-9017-872ee2ddf960-logo.svg)](https://www.flexmr.net/) Book a Demo Request Pricing [Contact Us](https://www.flexmr.net/contact/) Menu - [Home](https://www.flexmr.net/) - [InsightHub](https://www.flexmr.net/insighthub/) - [What is InsightHub?](https://www.flexmr.net/insighthub/) - [Data Collection](https://www.flexmr.net/insighthub/data-collection/) - [Data Analysis](https://www.flexmr.net/insighthub/data-analysis/) - [Data Activation](https://www.flexmr.net/insighthub/data-activation/) - [Research Templates](https://blog.flexmr.net/topic/survey-templates/) - [Information Security](https://www.flexmr.net/insighthub/information-security/) - [Services](https://www.flexmr.net/services/) - [Our Expert Services](https://www.flexmr.net/services/) - [Support & Education](https://www.flexmr.net/services/support-and-education/) - [Consultative Services](https://www.flexmr.net/services/consultative-services/) - [Insight Delivery](https://www.flexmr.net/services/insight-delivery-services/) - [Research Methods](https://www.flexmr.net/methods/) - [Sectors We Work With](https://www.flexmr.net/sectors/) - [About](https://www.flexmr.net/about/) - [About Us](https://www.flexmr.net/about/) - [Leadership](https://www.flexmr.net/about/leadership/) - [Meet the team](https://www.flexmr.net/about/meet-the-team/) - [Advisory Board](https://www.flexmr.net/about/advisory-board/) - [Press & Media](https://resources.flexmr.net/tag/press) - [Accolades](https://www.flexmr.net/about/accolades/) - [Careers](https://www.flexmr.net/about/careers/) - [Blog](https://blog.flexmr.net/) - [Resources](https://resources.flexmr.net) - [Contact](https://www.flexmr.net/contact/) - [Book a Demo](https://blog.flexmr.net/) - [Request Pricing](https://blog.flexmr.net/) - [Home](https://www.flexmr.net/) - [InsightHub](https://www.flexmr.net/insighthub/) - - [What is InsightHub?](https://www.flexmr.net/insighthub/) - [Data Collection](https://www.flexmr.net/insighthub/data-collection/) - [Data Analysis](https://www.flexmr.net/insighthub/data-analysis/) - [Data Activation](https://www.flexmr.net/insighthub/data-activation/) - [Research Templates](https://blog.flexmr.net/topic/survey-templates/) - [Information Security](https://www.flexmr.net/insighthub/information-security/) - ![Camp InsightHub](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/camp_insighthub_nav.png) Embark on a new adventure. Join Camp InsightHub, our free demo platform, to discover the future of research. [Sign Up Today](https://insighthub.flexmr.net/users/new) - ![FlexMR InsightHub](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insighthub_screenshot.png) Read a brief overview of the agile research platform enabling brands to inform decisions at speed in this PDF. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/InsightHub_Brochure.pdf) - ### InsightHub on the Blog - [Surveys, Video and the Changing Face of Agile Research](https://blog.flexmr.net/surveys-video-changing-agile-research) - [Building a Research Technology Stack for Better Insights](https://blog.flexmr.net/research-technology-stack) - [The Importance of Delegation in Managing Insight Activities](https://blog.flexmr.net/delegation-importance-insight-activities) - [Common Insight Platform Pitfalls (and How to Avoid Them)](https://blog.flexmr.net/platform-pitfalls-how-to-avoid-them) - [Services](https://www.flexmr.net/services/) - - [Our Expert Services](https://www.flexmr.net/services/) - [Support and Education](https://www.flexmr.net/services/support-and-education/) - [Consultative Services](https://www.flexmr.net/services/consultative-services/) - [Insight Delivery Services](https://www.flexmr.net/services/insight-delivery-services/) - [Research Methods](https://www.flexmr.net/methods/) - [Sectors We Work With](https://www.flexmr.net/sectors/) - ![FlexMR Services Team](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/services.jpg) Our services drive operational and strategic success in challenging environments. Find out how. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/Brochures/FlexMR_Services_Brochure.pdf) - ![Video Close Connection Programme](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/video_services.jpg) Close Connections bring stakeholders and customers together for candid, human conversations. [Read Press Release](https://resources.flexmr.net/close-connections-launch) - ### Explore our Practices - [Communities Practice](https://www.flexmr.net/insighthub/) - [Closeness Practice](https://www.flexmr.net/practices/customer-closeness/) - [CX Practice](https://www.flexmr.net/practices/customer-experience/) - [Insight Communications Practice](https://www.flexmr.net/practices/insight-communications/) - [About](https://www.flexmr.net/about/) - - [About Us](https://www.flexmr.net/about/) - [Leadership](https://www.flexmr.net/about/leadership/) - [Meet the Team](https://www.flexmr.net/about/meet-the-team/) - [Advisory Board](https://www.flexmr.net/about/advisory-board/) - [Press & Media](https://resources.flexmr.net/tag/press) - [Accolades](https://www.flexmr.net/about/accolades/) - [Careers](https://www.flexmr.net/about/careers/) - ![FlexMR Credentials Deck](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/flexmr_credentials.png) The FlexMR credentials deck provides a brief introduction to the team, our approach to research and previous work. [Download Credentials](https://blog.flexmr.net/hubfs/Public_Files/Brochures/FlexMR_Credentials.pdf) - ![FlexMR Insights Empowerment](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insights_empowerment.png) We are the insights empowerment company. Our framework addresses the major pressures insight teams face. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/Brochures/Insights_Empowerment_Brochure.pdf) - ### Latest News - [Insight as Art Shortlisted for AURA Innovation Award](https://resources.flexmr.net/aura-innovation-award-2021) - [FlexMR Launch Video Close Connection Programme](https://resources.flexmr.net/close-connections-launch) - [VideoMR Analysis Tool Added to InsightHub](https://resources.flexmr.net/videomr-launch) - [FlexMR Makes Shortlist for Quirks Research Supplier Award](https://resources.flexmr.net/quirksmr-mr-supplier-award-2020) - [Blog](https://blog.flexmr.net) - - [Latest Posts](https://blog.flexmr.net) - [Strategic Thinking](https://blog.flexmr.net/topic/strategic-thinking) - [Technology & Trends](https://blog.flexmr.net/topic/tech-trends) - [Research Methods](https://blog.flexmr.net/topic/research-methods) - [Practical Application](https://blog.flexmr.net/topic/practical-application) - [Insights Empowerment](https://blog.flexmr.net/topic/insights-empowerment) - [View Full Blog Archives](https://blog.flexmr.net/all) - ![FlexMR Close Connection Programme](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/close_connection.png) Discover how to build close customer connections to better support real-time decision making. [Build Connections](https://blog.flexmr.net/practical-support-real-time-decisions) - ![Market Research Playbook](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/market_research_playbook.png) What is a market research and insights playbook, plus discover why should your team consider building one. [Discover Playbooks](https://blog.flexmr.net/market-research-playbook) - ### Featured Posts - [Five Strategies for Turning Insight into Action](https://blog.flexmr.net/5-strategies-turn-insights-into-action) - [How to Design Surveys that Ask the Right Questions](https://blog.flexmr.net/effective-survey-design-guide) - [Scaling Creative Qual for Rich Customer Insight](https://blog.flexmr.net/scale-creative-qual-rich-understanding) - [How to Measure Brand Awareness: The Complete Guide](https://blog.flexmr.net/measure-brand-awareness) - [Resources](https://resources.flexmr.net) - - [All Resources](https://resources.flexmr.net) - [Client Stories](https://resources.flexmr.net/tag/case-studies) - [Whitepapers](https://resources.flexmr.net/tag/whitepapers) - [Events & Webinars](https://resources.flexmr.net/tag/events) - [The Open Ideas Panel](https://ideas.flexmr.net/auth/sign_in) - [InsightHub Help Centre](https://help.flexmr.net/en) - [FlexMR Client Network](https://www.linkedin.com/groups/9165407/) - ![Insights Empowerment Readiness Calculator](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insights_calculator.png) The insights empowerment readiness calculator measures your progress in building an insight-led culture. [Get Your Score](https://resources.flexmr.net/insights-empowerment-calculator) - ![MRX Lab Podcast](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/flexmr_podcast.png) The MRX Lab podcast explores new and novel ideas from the insights industry in 10 minutes or less. [Listen Now](https://resources.flexmr.net/mrx-lab-podcast) - ### Featured Stories - [Specsavers Informs Key Marketing Decisions with InsightHub](https://resources.flexmr.net/specsavers) - [The Coventry Panel Helps Maintain Award Winning CX](https://resources.flexmr.net/coventry-building-society) - [Isagenix Customer Community Steers New Product Launch](https://resources.flexmr.net/isa-insights) - [Curo Engage Residents with InsightHub Community](https://resources.flexmr.net/curo) - [Strategic Thinking](https://blog.flexmr.net/topic/strategic-thinking) / 9 MIN READ ## Three Ways to Survive a Recession: Insights on Pricing and Productivity #### Paul Hudson # [Workshops and Beacons: A Guide to Building Custome...](https://blog.flexmr.net/workshops-beacons-customer-salience) Most organisations are not short of data, insight or decks.Their biggest challenge is not whether cu... [Read more](https://blog.flexmr.net/workshops-beacons-customer-salience) 9 MIN READ #### Ed Hill - [Events (1)](https://blog.flexmr.net/topic/events) - [Insights Empowerment (38)](https://blog.flexmr.net/topic/insights-empowerment) - [Practical Application (178)](https://blog.flexmr.net/topic/practical-application) - [Research Methods (285)](https://blog.flexmr.net/topic/research-methods) - [Strategic Thinking (232)](https://blog.flexmr.net/topic/strategic-thinking) - [Survey Templates (7)](https://blog.flexmr.net/topic/survey-templates) - [Tech & Trends (397)](https://blog.flexmr.net/topic/tech-trends) The economic outlook for 2023 is turbulent to say the least. The World Economic Forum reports a [few bright spots](https://www.weforum.org/agenda/2023/01/global-recession-economic-outlook-2023/) across the globe. The MENA, South Asia and Pacific regions appear set to avoid the worst impacts of recession and high inflation. But 100% of Chief Economists in Europe expect weak growth in the region, and more than 50% foresee high inflation. The United States fares slightly better, with only 24% expecting high inflation – but 91% still anticipate weak economic growth. Safe to say that for many of us, it’s going to be a challenging year. So how should business leaders and executives react? Well, there are three ways to survive in difficult times. Sadly, I’m old enough to say I’ve survived one big recession, a few smaller ones and a pandemic. But the impending recession ahead of us is very different. Which is, perhaps counter-intuitively, considered relatively normal. ![WEF_Stagflation](https://blog.flexmr.net/hs-fs/hubfs/Marketing_Files/Blogs/Inline/WEF_Stagflation.png?width=4001&height=3453&name=WEF_Stagflation.png) Ask an economist and they’ll tell you every recession is different. You need to adapt to the specific circumstances that await you. In this case, at least for those of us in the UK, that means the return of double-digit inflation – something we haven’t seen for the past 40 years. And over the next 12 months, it’s a phenomenon that every business leader, marketer and researcher in the country will have to grapple with. ## The Impact of Inflation Inflation hurts in a particularly practical way. High rates of inflation mean that many businesses are seeing costs rise a lot faster than revenue. The challenge that this creates is an immediate, short-term one. And one that is almost inescapable, even for those with loyal or contracted customer bases. The question of price is one that naturally arises. It’ll be debated in boardrooms over and over. The simple solution is that raising prices counteracts the effect of rising costs. But, that’s not always the case. No matter how good your communication, an increase is always a trade-off against value and affordability. Some will determine that it is still the best course of action. But what else can you do? | ![Tweet from FlexMR](https://blog.flexmr.net/hs-fs/hubfs/Website_Files/Images/Icons/tweet-flexmr.png?width=40&height=33&name=tweet-flexmr.png) | ***Tweet This*** | | --- | --- | | [In any period inflation, the question of increasing prices arises. As costs go up, it makes sense to raise revenue. But this is often far from the most effective long-term strategy. .](https://ctt.ac/f44cH) | | My experience suggests an effective response should *all* be about productivity. It’s time to talk about that P word, and it needs to become a core part of your vocabulary. Because when prices are squeezed, it is the lever that best redresses the tricky balance between revenue and expenditure. So, what does this mean? Well, productivity is defined by the OECD as a ‘measure of how efficiently production inputs, such as labour and capital, are being used to produce a given level of output.’ And if you’re looking for what those measures are, the OECD publishes a complete compendium of productivity indicators – [available online](https://www.oecd.org/employment/oecd-compendium-of-productivity-indicators-22252126.htm). ## Three Paths to Productivity To put it simply, when you reach the trade-off ceiling between supply and demand, the next most effective method is to deliver the highest level of output with the minimum level of input. There are three ways to improve your current level of productivity. But only one leads to long-term success. Let’s look at each of the options. ### 1. Slash - Trimming the Excess This is the simplest option, and the one that business leaders tend to turn to first. It involves cutting as much cost as quickly as possible. Lowering input costs fast by cutting resources, usually headcount and budgets, is an effective short-term solution. But it’s not sustainable, not particularly ethical and doesn’t create an environment capable of building long-term success. Nevertheless, it’s a common tactic. The website [layoffs.fyi](https://layoffs.fyi/) has been tracking layoffs, a useful barometer for the popularity of the slash tactic, in the tech sector alone since the start of the COVID pandemic. How bad has the damage been? Well, over 1,000 tech firms laid off 150,000+ workers in 2022 alone. And those numbers only seem set to grow in 2023. Ouch. That’s a lot of firms, looking to balance revenue and expenditure pretty quickly. But those actions will remain in the collective conscious of consumers and employees for a lot longer. And with a smaller staff base, capitalising on recovery will be much harder. It is the definition of short-termism. So, what’s the alternative? ![slash_tactic](https://blog.flexmr.net/hs-fs/hubfs/Marketing_Files/Blogs/Inline/slash_tactic.png?width=1200&height=644&name=slash_tactic.png) ### 2. Sweat - Bolstering Productivity I call the second approach the sweat tactic because it involves increasing output by making us all do more. Although it can be an independent, this tactic is often associated with slashing. As headcounts and budgets are cut, those that remain are expected to do more with less. Now, it’s certainly possible to be directional and devise operational plans that minimise disruption or empower greater efficiency. But the human cost is largely the same as cutting. It’s another short-term solution that leaves little room to capitalise on economic recovery. ![sweat_tactic](https://blog.flexmr.net/hs-fs/hubfs/Marketing_Files/Blogs/Inline/sweat_tactic.png?width=1200&height=644&name=sweat_tactic.png) ### 3. Smarts - Achieving Long Term Balance So, one option remains. The smart approach involves a critical reflection of what is required and what is not. The time-frame across which this question should be considered is what separates it from slashing and sweating. Both of those approaches ask what is the most essential to prioritise in the immediate future. The smart approach is about considering the shape of your business in one to five years, regardless of the current economic climate. That’s what makes it a long-term solution. Think carefully about what is needed and what isn’t, what is adding value and what is draining resource. Then seek out the people, processes and technology that will minimise the impact of low priority activities. ![smart_tactic](https://blog.flexmr.net/hs-fs/hubfs/Marketing_Files/Blogs/Inline/smart_tactic.png?width=1200&height=644&name=smart_tactic.png) ## What Comes Next Technology is the great enabler. Smart, targeted investments will streamline existing processes, lower barriers, remove blockers within an organisation and create a smoother flow of action. That means harnessing what’s available at the current moment and aligning your whole operations with the best possible technology. For example, at this current moment, I’m acutely aware that AI tools like [Chat-GPT](https://openai.com/) will play an important role in streamlining operations in the year that lies ahead. | ![Tweet from FlexMR](https://blog.flexmr.net/hs-fs/hubfs/Website_Files/Images/Icons/tweet-flexmr.png?width=40&height=33&name=tweet-flexmr.png) | ***Tweet This*** | | --- | --- | | [There are three ways to survive a recession: slash, sweat or be smart. Only one of these leads to long-term success and sets your business up for high growth as the financial outlook improves. .](https://ctt.ac/7u0hx) | | Ultimately, it is the smart approach will help your business in the long-term. To all executives, insight and marketing leaders – I’d urge you to look beyond just surviving inflationary times. Draw up plans that see through the immediate pressures and into economic recovery. If the crises I’ve lived through have taught me anything, it’s that this approach will set you up to achieve so much more. And, if that wasn’t convincing enough, it is also the path that national economies rely upon to generate better GDP, lifting us all up together. *PS. Driving productivity across research operations and finding new efficiencies is a key pillar of the FlexMR insights empowerment framework. We've built the world-leading InsightHub platform to help research, product and marketing teams put customers at the heart of every business decision, whilst streamlining, scaling and supercharging operations. Interested in how we do this? Find out more [here](https://flexmr.net/about/).* [![Camp InsightHub](https://blog.flexmr.net/hs-fs/hubfs/Marketing_Files/CTAs/cta_camp_insighthub.png?width=1000&name=cta_camp_insighthub.png)](https://insighthub.flexmr.net/users/new) #### About FlexMR We are The Insights Empowerment Company. We help research, product and marketing teams drive informed decisions with efficient, scalable & impactful insight. #### About Paul Hudson Paul is the CEO of FlexMR and an active member of key industry bodies. He aims to empower insight teams across the globe. #### Stay up to date ## You might also like... ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/Workshops.png) ### [Workshops and Beacons: A Guide to B...](https://blog.flexmr.net/workshops-beacons-customer-salience) Most organisations are not short of data, insight or decks.Their biggest challenge is not whether customer understanding exists since most teams have access to more customer insight than ever before. ... [Continue reading](https://blog.flexmr.net/workshops-beacons-customer-salience) 9 MIN READ ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/ZeroParty.png) ### [Communities and the Post-Cookie Fut...](https://blog.flexmr.net/communities-post-cookie-future) The abundance of data available at our fingertips is not an uncommon topic in the industry these days. Neither is the question: how do we use it effectively? [Continue reading](https://blog.flexmr.net/communities-post-cookie-future) 6 MIN READ ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Thea%20Closeness%20Blog.png) ### [Empathy, Emotion and Compassion in ...](https://blog.flexmr.net/empathy-customer-closeness) Empathy, compassion, and emotional understanding are increasingly recognised as essential components in building a culture of customer closeness, yet many organisations still struggle to move beyond a... [Continue reading](https://blog.flexmr.net/empathy-customer-closeness) 6 MIN READ ![](https://www.flexmr.net/skin/images/images-custom/48f118ee-cef9-42d6-b60b-5575d5ac26e3-flexmr_footer.svg) - [Home](https://www.flexmr.net/) - [Contact Us](https://www.flexmr.net/contact/) - [Privacy Policy](https://www.flexmr.net/legal/privacy/) - [Cookie Policy](https://www.flexmr.net/legal/cookies/) - [Terms of Use](https://www.flexmr.net/legal/terms-of-use/) [Follow us on Facebook](https://www.facebook.com/flexmr/) [Follow us on Twitter](https://twitter.com/_flexmr) [Follow us on LinkedIn](https://www.linkedin.com/company/flexmr) [Follow us on YouTube](https://www.youtube.com/c/FlexmrNetOnlineResearch) [![Grit Top 50 Logo](https://www.flexmr.net/uploads/photo-gallery-include-images/34/44258f4d-7452-40d6-bb23-0e220c8ba21f.png)](https://www.greenbook.org/mr/grit/business-innovation-edition) [![ISO 27001 Alcumus](https://www.flexmr.net/uploads/photo-gallery-include-images/34/fa89f9b3-d866-43b8-8de0-4a052a9053d8.png)](https://www.alcumus.com/en-gb/certification/iso-27001/) [![Cyber Essentials Plus Logo](https://www.flexmr.net/uploads/photo-gallery-include-images/34/cba57df6-75a2-4544-9599-dcc0c2f14b79.png)](https://blog.flexmr.net/hubfs/Public_Files/Other/FlexMR_Cyber_Essentials_Certificate.pdf?__hstc=163229475.dde2c3d212762f49b059c9f62e7537a0.1624542718433.1626339489304.1626701624468.7&__hssc=163229475.2.1626701624468&__hsfp=3142549060) © FlexMR 2021. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Paul Hudson", "url" : "https://blog.flexmr.net/author/paul-hudson" }, "dateModified" : "2023-01-18T20:09:43.980Z", "datePublished" : "2023-01-18T13:09:45.000Z", "headline" : "Three Ways to Survive a Recession: Insights on Pricing and Productivity", "image" : [ "https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/survive_recession.png" ], "mainEntityOfPage" : { "@id" : "https://blog.flexmr.net/insights-recession-productivity", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.flexmr.net/hubfs/Website_Files/Images/Logos/flexmr_logo_amp.png" }, "name" : "FlexMR" } } ```