Over the last 15 years Fortune 1000 companies have widely adopted the Net Promoter Score methodology. Case study after case study has shown how careful dedication to a comprehensive approach to NPS has delivered ROI. However, many startups and rapid growth companies have not implemented the model or reaped the benefits. Here are five reasons a startup should implement net promoter score as soon as it has at least 50 customers.
First, NPS can be used to establish a critical baseline against which measurement can be evaluated for many years to come. While all startups need to be fluid they also benefit from consistency. Establishing an NPS score early allows the startup to know whether it is moving in a positive or negative direction with the metric that is squarely grounded in customer feedback and loyalty.
Second, all startups need to pivot through the course of their evolution. Just because a startup is pivoting doesn't mean it's going in a better direction. An accurate NPS score is one of the most helpful metrics to guide a startup in the right direction.
Third, NPS score is a good fit for the agile culture and pace of a startup. An NPS score can be determined very quickly and insights from the data can be incorporated into product development at rapid speed.
Fourth, done properly NPS score is shared with the entire organization. This allows for consistency of focus and communication amongst different departments, teams and employees. This shared communication is a healthy attribute of building a strong company culture.
Fifth, as a startup grows larger and larger and considers being sold or other exit strategies a strong NPS score can increase the sale price. The score provides an objective data point without any subjectivities or emotion. What large acquiring company wouldn't want to buy a start up with a great NPS score?
These five reasons all support the strategic rationale for implementing net promoter score early in a company's evolution. It will be up to the leadership of the startup to prioritize this effort amongst all the other items on the to-do list.