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Pure Storage (PSTG) Impresses with High Net Promoter Score

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Pure Storage, Inc. (PSTG - Free Report) recently announced that it has achieved a Net Promoter Score (NPS) of 83.5 in an evaluation by Satmetrix, an independent analytics company with a focus on improving customer retention.

Pure Storage’s score is in stark contrast to the industry average of 16 in the hardware technology space. With an NPS of 83.5, Pure Storage has left behind some of the leading brands and products in the consumer technology space such as Tesla with an NPS of 81 and Apple Inc.’s (AAPL - Free Report) iPhone with an NPS of 63.

As per Richard Owen, the CEO of Satmetrix, a score higher than 75 is very rare among business-to-business (B2B) vendors or consumer companies.

What is NPS?

Basically, NPS is an index to measure customer satisfaction. As the name suggests, it keeps a track of the number of customers likely to ‘promote’ or recommend a particular product or brand to others. 

The higher the score, the better.

What Does this Mean for Pure Storage?

Pure Storage is a leading enterprise data storage platform vendor. The company's storage platform provides Purity Operating Environment, a flash-optimized software; FlashArray, a modular and scalable all-flash array hardware and Pure1, a cloud-based management and support platform.

The company operates primarily in the U.S., Europe and Asia. The company serves cloud-based software and service providers, consumer web, education, energy, financial services, governments, healthcare, manufacturing, media, retail and telecommunications sectors.

Pure Storage reported second quarter fiscal 2017 revenues of $163.2 million, up a whopping 92.8% on a year-over-year basis.

The growth was primarily driven by sales to repeat customers, healthy demand from the cloud space as well as a growing international customer base.

The exceptionally high score puts Pure Storage within the top 1% of Satmetrix audited scores within the B2B segment and reflects the company’s growing focus on expanding its storage business through the success of its customers.

As per IDC, a market research analytics firm, cloud spending is expected to exceed $500 billion by 2020. Given the huge scope, Pure Storage’s customer-first centric approach is likely to augur well for the company in the long run.

However, stiff competition in the cloud space with the presence of major players such as Amazon.com, Inc.’s (AMZN - Free Report) Amazon Web Services and Microsoft Corporation’s (MSFT - Free Report) Azure remains a matter of concern.

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