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If Integrations Drive SaaS Success, Where's the Data?

Tom Elliott
6 min read

Last updated: September 29, 2020

Left Hook

Introduction

The integration industry frequently promotes the idea that "integrations drive customer retention," yet Tom Elliott, Co-Founder and CEO of Left Hook, acknowledges receiving pushback from skeptical SaaS leaders. These contrarians raise legitimate concerns worth examining.

Common Objections to Integration Focus

Three primary counterarguments emerge regularly:

  1. Partnership Disappointment – Integrations that require extensive development time often fail to deliver meaningful results once launched.

  2. Complexity Over Simplicity – For narrowly-focused SaaS solutions, integrations can complicate user experience and increase support burden rather than adding value.

  3. Technical Debt Concerns – Experienced leaders worry about the long-term maintenance burden of scalable integrations, having witnessed costly failures previously.

Despite these legitimate concerns, Elliott notes that integration remains a recognized "B2B software buying trend" across the industry.

The Missing Data Problem

Elliott's central thesis addresses a significant gap: compelling, data-driven case studies supporting integration's business impact remain surprisingly scarce. He observes that while SaaS metrics receive abundant coverage from venture capitalists and analysts, rigorous analysis of integration's correlation with business success is underrepresented.

This absence is puzzling given integration's purported importance to SaaS success.

Existing Case Studies

Typeform and Zapier Analysis

The most thorough examination Elliott finds comes from Zapier's engineering blog, analyzing the relationship between Typeform integration adoption and customer churn. While rigorous mathematically, this analysis is over three years old at publication time.

Zapier's 2018 Roundup

Adam DuVander compiled five data-supported cases:

  • Acuity Scheduling – Most persuasive example. Research correlated "integrated users" versus "non-integrated users" to in-app activity and freemium conversion rates. Critically, early integration adoption emerged as a reliable "buy signal" among trial users.

  • Typeform, Evernote, FreshBooks, Autopilot – Additional examples, though less rigorously supported. FreshBooks and Evernote data dates from 2014; Autopilot statistics are from 2015 and lack depth.

Elliott concludes these cases represent "a good start, but nowhere near enough to make the case beyond a shadow of a doubt."

The Salesforce Mythology Problem

Elliott previously cited a 2015 Harvard Business Review article claiming "half of Salesforce's revenue from APIs." Upon investigation, Elliott discovered the HBR piece merely republished another source (TechTarget) without substantiating the claim with actual data.

McKinsey Connection

Elliott later identified McKinsey as the likely original source. A McKinsey article on APIs discusses the data-economy's promising integration potential, though "provides no citation to data or a primary source for this powerful factoid."

Personal Confirmation (Limited)

Elliott notes speaking with a Salesforce employee "with knowledge of the situation" who confirmed the company attributes "at least 50%" to its API ecosystem. The employee added, "I'd be surprised if it wasn't higher."

However, Elliott cautiously notes this remains anecdotal confirmation rather than published research.

The Math's Appeal

Fifty percent of Salesforce's 2018 revenue represented approximately $6.5 billion—coincidentally nearly equivalent to Salesforce's acquisition price for MuleSoft, an integration platform. This alignment fuels industry enthusiasm for the figure despite lacking rigorous documentation.

Confirmation Bias in Integration Advocacy

Elliott identifies a troubling pattern: the integration industry desperately wants this narrative to be true. Marketing materials and whitepapers from companies promoting integrations frequently offer "more truthiness than trustable data."

The ease with which professionals accept appealing metrics without verification suggests widespread confirmation bias in SaaS decision-making around integrations.

Systemic Gaps

Elliott speculates why rigorous integration data remains scarce:

  • Perceived obviousness of integration value eliminating perceived need for proof
  • SaaS leaders treating integration as a checkbox exercise rather than strategic priority
  • Labor-intensive data collection and honest analysis requirements

Call for Action

Elliott proposes that the industry requires "well-integrated mature companies to provide more data with more analysis" and young startups tracking "causal or correlated ROI over time, ideally from Day 1."

Left Hook offers partnership on data analysis and distribution, explicitly stating openness to findings that "might complicate or diminish our marketing messages."

Nuanced Conclusion

After five years building integrations, Elliott's perspective remains balanced: not all integrations represent sound investments; strategic context matters; and integration decisions require nuanced business analysis rather than blanket enthusiasm.

Elliott invites companies to collaborate on rigorous investigation of integration's actual business impact, positioning this as the first in a series exploring the topic.

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