Economics & margins
Profit lift from a 5% retention gain
Increasing customer retention rates by 5% increases profits by 25% to 95%, per research by Frederick Reichheld of Bain & Company.
The exact lift varies by industry; Phorest cites the same finding in a salon context.
This figure is load-bearing across 31 pages on SalonAI. See where, below.
Sources
Where this number comes from. The end of the reference chain.
The Value of Keeping the Right Customers
Harvard Business Review/2014/article
The Salon Owner's Guide to Client Retention
Phorest/2023/vendor
Where this number is used
Every page on SalonAI that leans on this figure. This is the point: a number is not a dead end, it is a node, and you can see exactly what it supports and follow it up the hierarchy.
AI capabilities (3)
By business type (6)
Software categories (2)
Free tools (1)
Comparisons (1)
Deep-dive pages (18)
Related numbers
Figures from economics & margins that make the same argument. Follow the evidence sideways.
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