I recently heard a story from Annie Kadavy at Charles River Ventures who talked a bit about what it was like for entrepreneurs to pitch the early-stage VC firm. At CRV’s partner meetings no one (no matter how uninspiring the startup’s pitch) is allowed to look at their cellphones. The team keeps each other accountable with a monetary fine measured in the thousands of dollars – no joke. If you’re caught on your phone during a meeting, dinner (and a likely expensive wine pairing) for the entire team is on your dime.
CRV’s policy is in place out of respect for the entrepreneur. I like the quirky policy, even if most CRV partners can afford the hefty fine without losing any sleep (the firm has invested in Twitter, Yammer, and Zendesk after all). It says something about who these people are, or at least the image and brand they hope to convey.
While the information on our iPhones may sometimes be more important, or urgent, or interesting than the meeting we’re attending, there’s very little in the modern business world more annoying, disrespectful even, than someone who is checked out on their phone while you’re speaking during a meeting. And I am absolutely guilty myself. The defense mechanism / rationalization is “I’m multi-tasking, I’m doing more, getting more done,” but are we really?
It’s not just the lack of respect, it’s the lack of efficiency as well. My active listening takes a big hit when I’m all thumbs, replying to an email on my mobile device, while trying to pay attention to those in the room around me. And the email response I’ve hastily crafted is worse as well, because it doesn’t have my full attention either. We’ve all missed the punchline to an (allegedly) hilarious joke told in real life, while straining our necks staring into the phones on our laps.
I live much of my life with the goal of being proactive, not reactive, so responding to that urgent email (even from your boss) or text (even from your spouse) can surely wait an additional 15, 30 or 45 minutes until the meeting is over.
So I’m going to do my best and take a page out of CRV’s playbook. Check the phone at the door when it comes to meetings (and maybe family dinners too). I’ll still incessantly doodle away on my notepad and get some funny looks in the process during meetings, but I’ll be eating my turkey without a side of Gmail or Twitter this Thanksgiving.
Sharing economy startup Instacart working on their Net Promoter Score.
I used Instacart for the first time last week. I had just returned home from a grueling travel schedule that included six flights in one week- a trip that ended with me suffering from your typical flight-induced common cold. Despite a precautionary purchase of two overpriced bottles of Dasani Water at the Hudson News store at each airport I visited, as well as constant hand sanitizer application, I couldn’t escape the wrath of that dry, recycled, Airbus air.
So instead of making the trek to my local grocer for the requisite cold remedies, I downloaded Instacart.
Instacart, as you are probably well aware, is the leading grocery delivery service in the U.S., valued at around $2 billion. A darling in the sexy on-demand economy.
Using the Instacart app for the first time was phenomenal – a great mobile onboarding experience, sleek design, and smooth UI. Within ten minutes, I had ordered a grocery load of overpriced fruits and vegetables from my local Ralph’s grocery store. An avocado at Ralph’s usually costs me about $0.79, but I gladly paid the $1.19 on Instacart while hydrating with some herbal tea and spooning a box of tissues on my couch. The groceries were at my front door within an hour. The next day, Instacart emailed me and asked me to rate my order. I gave the experience 5-stars.
I don’t know if my 5-star review triggered a follow-up email from Instacart, or if this is part of their normal email marketing cadence after someone completes their first order, but within hours of receiving the first request for feedback, I received a second email: “How likely are you to recommend Instacart to a friend?”
I couldn’t stop thinking about that second email this past week – that Instacart knew they were in a strong position (I had rated the service 5-for-5) so they sent an additional customer loyalty email, and got me, at my most excitable (and vulnerable) moment to contribute to their quest for a high net promoter score (NPS).
Companies, specifically consumer tech startups, are enamored with achieving a high NPS. And they should be. In business due diligence, it is one of the sexiest metrics around. A strong NPS score, and the customer loyalty that comes with it, is a big-time value driver for VC firms, PE firms, or potential acquirers.
Don’t expect to raise a massive round of funding at a favorable valuation or be acquired for top dollar (or anything at all) with a poor NPS score. If your customers proactively go out and scream about your business from the mountain tops, then surely you must have a good product, a good service, and what is perceived to be a good business – in the eyes of the diligent.
Instacart asked me to contribute to their NPS research while they felt strong – their app was still a shiny new object in my life. Smart. When are people taught to ask for a raise? When they’re strong. Right after a huge milestone they’ve achieved. Right after the company crushed it’s quarterly revenue projections and their bosses aren’t stressed. Not after three straight missed quarters with the stock in the gutter. Instacart got the basics just right.
And while I don’t expect to use their service any time soon (strangely enough I enjoy grocery shopping at my local Ralph’s: the music reminds me of middle school, I get a kick from handpicking a perfectly ripe tomato, and as a creature of habit, its become part of my weekend morning routine) I would recommend Instacart to a friend.
It’s a nice reminder that you can create customer loyalty moments, close the loop, receive feedback, and get what you want (like NPS feedback), if your timing is right and you’re in a position of strength.
A positive customer experience and an inherently strong product or service can be the difference between a brand advocate for life or a missed opportunity. And with fourteen mentions of their company name in this post alone, looks like Instacart did more than just land one new user and NPS survey respondent. Who knew grocery shopping could be so magical.
