A Research Report by MAP Marketing
Executive Summary
For over a decade, Net Promoter Score (NPS) has been a popular metric for gauging client satisfaction and predicting growth. However, NPS falls short in predicting client retention.
MAP Marketing conducted primary research with 150 small businesses in Newcastle, NSW, revealing that over 50% of dissatisfaction stem from:
- Excessive costs
- Slow responsiveness
- Lack of understanding of the client’s business
These findings challenge accounting firms to go beyond loyalty metrics and proactively address churn triggers.
Background: NPS vs. Churn
While NPS measures advocacy, it does not predict churn. According to The Experience Journal, categorising churn reasons helps businesses update practices and forecast attrition more accurately.
MAP Marketing explored two key questions:
- What is the NPS of external accountants and superannuation auditors?
- What are the key reasons clients stop doing business with their accountant?
Methodology
- Sample Size: 150 Newcastle small businesses
- Approach: Face-to-face interviews with business owners
- Tools: Structured questionnaire with predefined churn reasons and open-ended feedback
- Data Collected: NPS score, churn reasons, qualitative insights
Why NPS Fails to Predict Churn
NPS is useful for measuring sentiment, but not behaviour. Here’s why:
- Sentiment ≠ Retention: Clients may like you but still leave due to poor service or high costs.
- Passives are silent flight risks: They neither complain nor praise but are quick to switch.
- Detractors disappear quietly: Without asking the right questions, you won’t know why they left.
The Psychology Behind Churn
Clients rarely leave after one bad experience. They leave when trust erodes over time:
- Surprise fees break trust
- Delayed responses signal low priority
- Lack of understanding makes clients feel invisible
These are not just technical failures—they’re loyalty killers.
The Numbers: More Than Just a Score
- NPS Score: +21%
- Mean Rating: 7.87
- Median: 8
- Standard Deviation: 2.28 (wide variance in experiences)
- Client Breakdown:
- Promoters (9–10): 43%
- Passives (7–8): 35%
- Detractors (0–6): 22%
Insight: Over half of clients are not loyal advocates, and more than a fifth are actively dissatisfied.
Top Reasons for Accountant Attrition
Primary Issues Identified:
- Excessive fees and costs – 16%
- Doesn’t understand my business/situation – 9%
- Slow to respond to requests – 8%
Grouped Insights:
- Cost-related frustrations – 27%
- Surprise invoices
- Unquoted fees
- Slow service delivery – 14%
- Poor client understanding – 9%
Conclusion: Over 50% of churn is due to pricing, communication delays, and lack of business insight.
Analysis
Despite a positive NPS of 21% (Promoters 43%-Detractors 22%) , client loyalty is fragile. The gap between satisfaction and retention suggests accountants may be over-relying on passive feedback and missing churn warning signs.
What Accountants Can Learn
Churn is measurable and preventable. Yet, most accountants don’t track it.
Action Plan for Accountants
- Track churn reasons alongside NPS
Use exit surveys and reviews to monitor fees, speed, communication, understanding, and value. - Map your “Churn Risk Index”
Assign scores based on how often clients raise top concerns—this offers early warning signs. - Fix the experience, not just the impression
Invest in:- Transparent pricing models
- Service Level Agreements (SLAs)
- Deeper client discovery sessions
- Re-engage the Passives
Proactively check in and deliver unexpected value to convert them into Promoters.
Final Insight
Accounting is a trust business. Clients pay for more than numbers—they pay for clarity, insight, and peace of mind.
A healthy NPS looks good on paper, but real growth comes from understanding why clients leave.
More Information
MAP Marketing: Helping professional firms grow by turning research into results.
📞 Contact Maria Charlton at maria@mapmarketing.com.au for tailored research into your client base.