B Evidence Grade B Graded accuracy verified by the review judge Safe to Cite Dated

25%

25% -- profit increase from retention increase for Businesses (customer retention programs) (2021)

2021  · Harvard Business Review

Increasing customer retention by 5% increases profits by 25% to 95%.

  • Reported range of 25% to 95% depends on what is sold
  • Conditional on increasing customer retention by 5%
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Attribution: Harvard Business Review View source
Lighthouse Research Team
Last verified:  ·  How we verify data →
Source verified Evidence graded
Value
25%
Unit
Percentage
Data Vintage
2021
Entity
Businesses (customer retention programs)
B
Strong, reliable evidence

Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.

61/100 confidence

Single source - not yet corroborated

Extraction
50
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
Harvard Business Review Primary Tier C
https://www.textrequest.com/blog/behavior-analysis-create-lifetime-customers/ ↗
Confidence: 48/100 Vintage: 2021 Channel: Wayback
Source Article
How to Use Behavior Analysis to Create Lifetime Customers
How to Use Behavior Analysis to Create Lifetime Customers Is it better to have 100 customers buy from you once and never come back, or 20 customers you know will purchase from you multiple times? While having more single-time customers seems like the better option, investing in customer loyalty has …
Original Research
Harvard Business Review · Original study ↗

Range 25%-95% 'depending on what you sell'; midpoint (60%) extracted per range rule. Attributed to research reported in Harvard Business Review (consistent with Bain & Company/Frederick Reichheld loyalty research); study year not stated in article, so article publication year (archived Oct 2021) used.

Methodology documented
Industrymarketing
Plain Text
Businesses (customer retention programs): 25% profit increase from retention increase. Source: Harvard Business Review (2021). Via Lighthouse Intelligence -- https://lighthousedata.io/data/hbr-5pct-retention-increase-profit-lift
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<blockquote cite="https://lighthousedata.io/data/hbr-5pct-retention-increase-profit-lift" 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 (customer retention programs)<br><small>Source: Harvard Business Review (2021) · <a href="https://lighthousedata.io/data/hbr-5pct-retention-increase-profit-lift" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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