NPS

Net Promoter Score (NPS) measures customer loyalty by asking one question: "How likely are you to recommend us to a friend or colleague?" Responses range from 0–10. Scores 9–10 are Promoters, 7–8 are Passives, and 0–6 are Detractors. NPS = (% Promoters) − (% Detractors).

NPS ranges from −100 to +100. An NPS above 50 is considered excellent; 0–30 is acceptable; below 0 signals serious problems. The metric is simple, repeatable, and directly correlates with revenue growth when tracked consistently over quarters.

Unlike satisfaction surveys that ask if customers are happy, NPS asks if they will actively promote you. This distinction matters: satisfaction doesn't always drive referrals. Many startups track NPS monthly or quarterly to spot product-market fit signals and churn early.

NPS is most valuable when segmented—by customer cohort, geography, product feature, or sales channel. This reveals which segments are truly loyal versus which are at risk.

Indian B2B SaaS startups (Freshworks, Razorpay, Dukaan) use NPS as a north star metric because unit economics depend on low churn and referral density. High-touch SaaS segments in India show NPS of 50–70 when product-market fit is achieved. B2C apps (Swiggy, PharmEasy) target NPS of 60+ but face steeper retention challenges due to category fragmentation and limited payment methods in tier-2/3 cities.

Regulatory context: RBI's fintech oversight and DPIIT's startup recognition frameworks don't mandate NPS, but venture funds increasingly use it as a due-diligence metric. Most Series A investors in India expect NPS data by 18–24 months post-launch. Indian founders should separate urban vs. non-urban NPS scores—tier-2 customers often show lower NPS due to slower support response times and language barriers, not product defects.