In today’s volatile economic environment, portfolio company executives and operating partners are facing difficult tradeoffs. They’re under pressure from investors to protect the customer base and preserve margins and cash flows, while also continuing to drive medium- and long-term growth. Compounding the challenge, many companies are now flying blind—relying on outdated assumptions about buyer behavior, price sensitivity, and competitive dynamics.
While market turbulence is beyond leaders’ control, there are strategic steps that they can take to drive clarity. Capturing timely data and validating what’s actually happening in the market enables companies to quantify, size and more effectively manage uncertainty.
Targeted, strategic market research provides a critical lens to cut through the noise. By gathering insight from both customers and competitors’ customers, PortCos can pinpoint where risk is building, how the next wave of budget contractions may take shape and—on the upside—where untapped opportunities still exist, even in a downturn.
We’re seeing a clear shift in how PE-backed companies are deploying research in today’s environment to deliver outsized ROI—helping companies focus their investments, sharpen their priorities, and ensure every dollar invested goes further.
When executed effectively, strategic market research doesn’t just inform decisions—it drives conviction in them.
Here are five ways we’re seeing PortCos and operating partners use market research to tackle uncertainty:
1) Use Research to Detect and Mitigate Revenue Risk
By tracking changes in customer budgets and spending priorities, companies can spot signs of contraction before they show up on financial statements. This means going directly to customers and decision-makers to understand how budgets have shifted, and which areas will be deprioritized or cut entirely. Strategic research helps PortCos manage their market by specific segments, such as by sector or geography, enabling focused, proactive retention efforts that drive the greatest impact. It can also test the likely effectiveness of potential actions before they’re deployed at scale.
2) Use Research to Navigate Pricing Pressure with Data, Not Instinct
In a pricing environment shaped by inflation, tariffs, and shifting demand, PortCos face two parallel, and potentially conflicting, risks: losing margin to unnecessary discounting, or losing customers by pushing through price increases that go too far. Strategic research helps clarify where the true thresholds lie by allowing you to measure real-time price sensitivity to make informed decisions about where to hold firm, where to offer flexibility, and where to pass through costs. Longitudinal research, such as quarterly or annual pulse checks, adds an extra layer of confidence, enabling pricing strategies to be continuously refined and tailored to the right customer segments over time.
3) Use Research to Enhance Customer Experience and Drive Retention
With cost and margin pressure rising, many portfolio companies are rethinking their service models—looking for ways to reduce spend without undermining customer retention. The challenge is knowing where to scale back and where to double down.
Strategic market research helps companies map the full customer journey and isolate the critical moments and touchpoints that matter most. Whether it’s onboarding, feature usability, support responsiveness, or perceived value, research can distinguish between what drives loyalty and retention—and what doesn’t. These insights allow teams to streamline confidently, focus resources where they’ll have the greatest impact, and prevent churn amongst the customers that matter most.
4) Use Research to Quantify and Manage Supply Chain Vulnerabilities
In industries with large, third-party supply chains—particularly manufacturing—what happens upstream has a direct impact on bottom lines. Yet, many companies treat these pressures as reactive challenges rather than areas that can be proactively investigated.
Strategic market research can support a forward-looking approach by gathering insight from supply chain stakeholders: distributors, raw material providers, contract manufacturers. Assessing where cost increases may be forming, which materials or components are at risk, and how competitors are responding helps PortCos better forecast financial exposure, stress-test pricing adjustments, and plan procurement or hedging strategies with greater confidence.
5) Use Research to Capture Emerging Value Pools
Even in downturns, new areas of demand and opportunity emerge. As market dynamics evolve, research helps forward looking companies identify the next wave of opportunity. PortCos that seek to better understand customer segments, adjacent use cases, emerging needs, or gaps created by competitor missteps will have a leg up.
By combining qualitative insight (to uncover unmet latent needs and pain points) with quantitative validation (to size, compare and prioritize potential opportunities), companies can update outdated assumptions, refine their positioning, and focus go-to-market efforts as value transitions. Just as importantly, these insights can help guide where to place strategic investments today to enable long-term growth and ensure readiness when the macro environment turns.
Looking Ahead: Navigating Uncertainty with Conviction
Strong PortCo executives and operating partners aren’t just reacting to short-term pressure—they’re also laying the groundwork for long-term success. In uncertain times, the companies that invest in understanding their customers, market dynamics, and competitive position will be better equipped to weather turbulence and come out ahead.
Azurite Consulting partners with investors, operators and executive teams to deliver unrivalled market, customer, and competitive intelligence with high precision and speed. If you want to arm your team with the information they need to make informed decisions and have the conviction needed to move forward – we’re here to help.
