Jason M. Lemkin says raising your Net Promoter Score cuts churn and drives word-of-mouth growth. Even early-stage startups can measure it quarterly and improve with faster support, phone lines, in-person visits, and live chat. Higher NPS means more recommendations and more revenue.
Let me talk about MPS. Why MPS is this amazing thing from 1 to 10. You know, people can argue over MPS, you can game NPS. What's a 40 versus a 30? But here's the magical thing. If you measure NPS with like any tool, I don't care what in app, out of app, email. You could try SurveyMonkey. You could use Medallia. However you measure it, the beauty to NPS is everyone in the company can make customers happier when you don't know what to do. How do I get more leads? I don't know. I'm out of ideas. How can I get my customers to pay more? I'm out of ideas. I can't raise pricing. I don't know what else to build. Right. I feel like I don't have any ideas on any of the areas. Whether you have seven people, 20 people, 35 people, wherever our one for 10, you can get your team together on Monday, everyone together, and say, okay, we're going to measure our MPS. It's 20. I want to get to 30 and 1/4 and I want to get to 40 and 2/4 and I want to be at 45 by the end of the year. Everyone in your company will have an idea. They'll come up with an idea. Oh, you know what? We take three hours to respond to tickets. What if we actually responded in real time? What if we got intercom, who's here up on the site? How many of you even pick up the phone? How many of you have a phone number on your website? What if you did? Would your customers that want a phone in be happier? Of course they would. Right? How many do you visit in person? Not enough. Well, if everyone wants, more people will get on a jet, more people will get in a Lyft or an Uber. So. So the beauty of this is that everyone can make your customers happier. It can be a rallying point. And when your customers are happy, they will buy more from you. And just as importantly, they will recommend you more. So driving your MPS up in one quarter will not triple your revenue or 10x your revenue this year. But it's getting that word of mouth out there. And all the best B2B companies, all the best software companies are built on word of mouth. At scale, they're all word of mouth. How did you hear about Zoom? How did you hear about Slack? How did you hear about Notion? It was word of mouth. It probably wasn't an ad, it probably wasn't a viral connection. Somebody. You hear about these things, word of mouth. And if you just don't know what you do. Get that mps they will start talking about you earlier and that will drive your revenue up this year. I don't know how much but it will work and you'll also have less churn and everything will be better. So this is something if you don't know what to do on Monday do this. Set a quarterly goal. Measure your MPS. You're not too early for MPS. You'll hear things like we have 30 customers. I just was talking to the great founder on Thursday. I don't do MPS because I only have 30 customers. Well you know what if you as the CEO or founder reach out to all of them yourself they will respond. You will get 22 responses out of 30 not 2. So you can get this done and then measure it on this week. Set a goal to Drive it up 20%. Talk with your team and just magic will happen this year. I guarantee it.
