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

75%

75% -- profitability increase for B2B SaaS companies (2016)

2016  · Bain & Company

If SaaS companies increase customer retention by 5%, they can increase business profitability by 75%.

  • Contingent on a 5% increase in customer retention
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Attribution: Bain & Company View source
Lighthouse Research Team
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Source verified Evidence graded
Value
75%
Unit
Percentage
Data Vintage
2016
Entity
B2B SaaS companies
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
75
Source Trust
60
Citation Chain
20
Independence
30
Methodology
60
Freshness
95
Bain & Company Primary Tier B
https://fastforwardadvisors.com/5-ways-to-deadlift-your-growth-strategies/ ↗
Confidence: 56/100 Vintage: 2016 Channel: Deep Crawl
Source Article
5 ways to deadlift your growth strategies
In every start up’s conference, you will find a panel about startup growth challenges and secret recipes.. If we ask you to spell out a growth strategy for B2B SaaS companies starting with the letters G R O W T H, can you finish this challenge in one minute? Our answers are: - Google Adwords - Refer…
Original Research
Bain & Company · Original study ↗

Cited Bain & Co research: a 5% increase in customer retention yields a 75% increase in business profitability. Bain's canonical published finding is a 25%-95% range; this article states 75%. Article publication date not stated; vintage inferred from cited company milestones (Slack 4M users, Intercom $50M ARR — both 2016).

Methodology documented
Industrysaas
Plain Text
B2B SaaS companies: 75% profitability increase. Source: Bain & Company (2016). Via Lighthouse Intelligence -- https://lighthousedata.io/data/saas-retention-5pct-profit-75pct
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<blockquote cite="https://lighthousedata.io/data/saas-retention-5pct-profit-75pct" style="border-left:3px solid #2563eb;padding:12px 16px;margin:16px 0;font-family:system-ui,sans-serif;background:#f0f4ff;"><strong>75%</strong> -- profitability increase for B2B SaaS companies<br><small>Source: Bain & Company (2016) · <a href="https://lighthousedata.io/data/saas-retention-5pct-profit-75pct" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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