How is Lipscore really doing? The Norwegian company that, a decade ago, pioneered software for collecting product reviews has seen significant growth since. Netthandel.no recently sat down with founder and CEO Henning Frettem, along with Jonny Hansen, CRO at Lipscore, to delve into their journey and future prospects.

Reflecting on the past, Frettem mentioned in a 2022 interview with Netthandel, “Doubling growth every year is a huge challenge… but we’re incredibly close to achieving just that.” Over the last three years, Lipscore has consistently increased its revenue by about 50% annually, jumping from 15 million NOK in yearly revenue to 25 million NOK in 2023. “It’s been beyond our expectations; we’ve scaled significantly lately. The energy is high,” confirms Frettem.

A Market Resisting Fakes

In an era where generating fake product recommendations is disturbingly easy, the prevalence of false reviews has become a significant issue. However, the introduction of the Modernization Directive in Norway in fall 2023 has brought increased attention to this issue. Digital marketplaces, including online stores, are now obligated to disclose whether and how they ensure user reviews are genuine. This legislation has heightened awareness among consumers and businesses alike, benefiting Lipscore significantly.

“The trust people have in Lipscore is unquestionable,” Frettem adds. This past fall, the company secured nearly 30 million NOK, primarily from a Norwegian private investor, along with several employees. “We aimed to raise 25 million NOK and exceeded it by 3 million. It was incredible,” says Hansen.

Global Aspirations and Local Strengths

Last year, Lipscore doubled its customer base and grew from 18 to 43 team members. It opened its first office in Poland and recently expanded into the Netherlands and Denmark, along with franchises in the UK and USA. “There’s major activity in Sweden right now, but the most exciting developments are in Denmark and the Netherlands. These are significant markets for us,” Frettem notes.

Despite strong competition, particularly in Denmark, the home of Trustpilot, Lipscore stands firm. “The competitive landscape in Denmark is unique, but in the Netherlands, it’s similar to what we’ve experienced in Norway and Sweden,” Hansen explains.

Innovating for the Future

Soon, Lipscore will launch a new product: Lipscore Analytics. This tool has been in conceptualization for over a decade, envisioned as a comprehensive management tool that aggregates data from both in-store and online customer experiences. This could change how retailers make purchasing decisions. For instance, if a product causes many returns and customer dissatisfaction, retailers can negotiate better with suppliers showing that competitors have better margins and customer feedback.

The volume and authenticity of data are Lipscore’s unique selling propositions. “The more genuine feedback we gather, the faster and more significant the impact,” adds Hansen.

Looking Ahead with Optimism

As global expansion continues, strong growth remains a priority, along with high ambitions for the future. “We’re about to launch the first version of Lipscore Analytics, and I’m really looking forward to it. I’m confident that many businesses will see brighter days ahead in 2024. The toughest times are behind us,” Frettem shares.

For Hansen, the joy comes from the journey itself. “I’m thrilled to continue working with Lipscore and to see our new projects progress. It’s incredibly fun to work with such a talented team. Watching all this unfold is something I greatly look forward to—it’s going to be great,” Hansen concludes.

This article is based on the original Norwegian article from Netthandel.no.