High NPS Scores Won’t Stop Churn (Unless You Do This)

For agencies, client retention is the single biggest driver of profitability and sustainable growth. 

While most agencies focus heavily on sales and marketing while neglecting the hidden factor that determines long-term success: client experience.

Hey, I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. I help overworked agency owners scale to 7 & 8 figures while working less hours per week.

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See this table below on why retention is the most important thing on the path of becoming a 8-figure agency:

Great - so we understand that churn (% of clients we lose per month) is the #1 factor. 

So what do we do about it?

Here is the high-level diagram on the 8-figure agency service flywheel:

That’s where Net Promoter Score (NPS) comes in—not just as a number, but as a system for identifying gaps, reducing churn, and driving upsells.

Why NPS Alone Isn’t Enough

Some agencies collect NPS scores, but most fail to close the feedback loop. 

Simply knowing if a client rates your service highly (or not) doesn’t change outcomes unless you enrich, then act on that data.

Here’s the breakdown:

1. NPS Score → Feedback Call: Every response (good or bad) should trigger a follow-up call to understand why the client gave that score. This enriches the data with context

2. Feedback Call → Process Updates: Insights from these calls should lead to internal process improvements (e.g., better reporting, clearer communication, proactive problem-solving). These are both good things we should enhance and things that need to be improved or added.

3. Process Updates → Improved Client Experience: These refinements directly improve client retention, upsell opportunities, and referrals.

The more iterations you do, the better your product and service will be.

Skipping any of these steps breaks the system - leading to higher churn and shrinking top line.

How NPS Reduces Churn & Drives Upsells

• Catch Problems Before Clients Leave: If an NPS response signals dissatisfaction, a feedback call allows you to fix the issue before they churn.

• Turn Happy Clients into Growth Opportunities: Clients who score you highly (9-10) are prime for referrals, upsells, and testimonials - but only if you engage them (there is an in depth process that I’ll cover in the future).

• Lower Sales & Marketing Costs: High churn means you’re constantly replacing lost revenue, eating into profit. Agencies with strong retention spend half as much on marketing compared to those with weak retention. 

  • Not because they spend less - but but because their top line can be 2-3x higher than those with high churn - the sales and marketing dollars just go further.

Make NPS Work for You

1. Build a System for NPS Follow-Ups: Every response (or lack of) should trigger a structured call with a clear agenda.

2. Identify & Fix Process Gaps: Use feedback to refine how you deliver services, ensuring issues don’t repeat.

3. Use NPS to Drive Revenue: Treat NPS calls as opportunities to introduce additional services that solve client pain points.

Bottom Line

Agencies that master this system scale faster, profit more, and spend less on marketing. 

NPS isn’t just a metric—it’s a profit driving catalyst  when used correctly.

If you’re not using NPS to close the feedback loop, you’re leaving revenue on the table. Time to change that.

If you want to check out a short training on how to handle client churn you can watch it here.

Ready to scale your agency in 2025?

Book a time with me to connect about how to hold your team accountable to your 2025 revenue goals.

Nick

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