B
Evidence Grade B
Graded
under review
Safe to Cite
Unknown
25%
25% -- profit increase from retention increase for Businesses increasing customer retention rates by 5% (1990)
Attribution:
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Lighthouse Research Team
Last verified:
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Source verified
Evidence graded
Value
25%
Unit
Percentage
Data Vintage
1990
Entity
Evidence Quality
B
Strong, reliable evidence
Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.
Single source - not yet corroborated
Score breakdown
Extraction
50
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
Source
Bain & Company
Primary
Tier C
https://rivyo.com/blogs/news/loyalty-tips-repeat-purchase-growth ↗
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Original Research
Bain & Company
· Original study ↗
Methodology
Source reports a range: increasing customer retention rates by 5% increases profits by 25% to 95%; midpoint (60%) extracted. Attributed in the article to Bain & Company research (Reichheld retention studies, commonly dated to 1990 HBR/Bain publications through 2001). Blog post itself is undated vendor content.
Methodology documented
Segmentation
Industrymarketing
Cite this stat
Plain Text
Businesses increasing customer retention rates by 5%: 25% profit increase from retention increase. Source: Bain & Company (1990). Via Lighthouse Intelligence -- https://lighthousedata.io/data/bain-customer-retention-5pct-profit-increase
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<blockquote cite="https://lighthousedata.io/data/bain-customer-retention-5pct-profit-increase" style="border-left:3px solid #2563eb;padding:12px 16px;margin:16px 0;font-family:system-ui,sans-serif;background:#f0f4ff;"><strong>25%</strong> -- profit increase from retention increase for Businesses increasing customer retention rates by 5%<br><small>Source: Bain & Company (1990) · <a href="https://lighthousedata.io/data/bain-customer-retention-5pct-profit-increase" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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