KAE CAPITAL PVT. LTD.

15 MARCH 2022

Net Promoter Score

Creating a Customer Obsessed Organisation @ Kae Capital

Faster
Resolutions are
a quick outcome
of a robust
Customer
focussed
organisation.

NPS - The one number you need to

grow.
Healthier
With a constant endeavour to create a lasting impact, we at Kae Capital are professional
regularly capturing our “Customer’s Voice” through Net Promoter Score and relationships by
creating actionable insights to improvise and become a better version of constant
communication
ourselves and serve you better.
through
feedback.
In this letter, we will cover all that you need to know about the CX (Customer
Experience) Plan at Kae Capital which is outsourced to LoremInsights
Technologies to encourage anonymity and non-biased feedback.

1 2 3 Favourable
Outcomes as a
CAPTURE ANALYSE IMPLEMENT result of better
inter-personal
Customer’s Voice Analyse the data to Use the insights to relationship.
through NPS focussed create actionable create a Customer
survey. insights. Obsessed organisation

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KAE CAPITAL PVT. LTD. 15 MARCH 2022

What is Net Promoter

Score (NPS)?
Net Promoter Score (NPS) is a measure used to
gauge customer loyalty, satisfaction, and
enthusiasm with a company that’s calculated by
asking customers one question: “On a scale from
0 to 10, how likely are you to recommend this Promoters, Detractors
product/company to a friend or colleague?” and Passives
Aggregate NPS scores help businesses improve Promoters (score of 9 and 10) represent a
upon service, customer support, delivery, etc. for company’s most enthusiastic and loyal
increased customer loyalty. customers: these people are likely to act as brand
ambassadors, enhance a brand’s reputation, and
As a business metric, NPS helps companies of all increase referral flows, helping fuel the
sizes organise around a mission-critical goal— company's growth.
increase their score by earning more enthusiastic
customers—that can be easily tracked and Detractors (score of 0 to 6, included) are
quantified over time. unlikely to recommend a company or product to
others, probably won’t stick around or repeat
“One of the most purchases, and—worse—could actively
discourage potential customers away from a
critical measures of a
business.
company’s
performance is the Passives (score of 7 or 8) are not actively
recommending a brand, but are also unlikely to
NPS or Net Promoter damage it with negative word of mouth.
Score — this simple
metric is meant to
quickly summarise the
loyalty a brand has
with its customers.”

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KAE CAPITAL PVT. LTD.
NET PROMOTER SCORE
AND VENTURE CAPITAL
As we are all aware, with so much capital
available to investors and entrepreneurs today, it’s
becoming increasingly important for VCs to be
effective marketers (while also not sacrificing the
qualities that made the partners great
entrepreneurs and attract the attractive ROI for
the investors).
At Kae Capital, we’re consistently engaged in the
fundraising process — either with our portfolio
companies or even for our own fund. In
participating in this process and observing this
process, we’re always reminded of the value of
“references.” As part of the due diligence process,
potential investors will usually call a handful of
people you’ve worked with in the past and ask
them pointed questions about you. Most of the
time references are simple checks to confirm
information about someone or something.
Recently, one of our potential investors took the
time to do reference checks on us at Kae Capital.
While we weren’t surprised this investor wanted
to do some reference calls, we were taken aback
by the depth and discovery of these calls.
During these reference checks, our potential
investors have been targeting our portfolio
companies, partners, co-investors, and everyone
in between. Reading between the lines, it appears
15 MARCH 2022
they are trying to determine our value as a VC. And
while we haven’t received their feedback yet, I’m
really thankful they are doing this. It’s been a great
opportunity to stop and realize the value of asking
your customers for feedback about what they think
about you. Software companies routinely do this
with their customers. Why don’t we do this as
venture firms?
Most VCs simply judge themselves by picking and
choosing — and more than that, VC investors and
partners judge them that way as well. While a
critical measure, in the short term, this can be
something that is incredibly difficult to determine.
Beyond that, it doesn’t account for a lot of the
intangible aspects of a VC — such as the value they
add to their investments. This necessitates a new
measure that can fill in the gaps, to which we
propose a psuedo-NPS where VCs can know how
they are doing in the short term and gain a
valuable feedback loop that seemingly doesn’t exist
actively today.
This might be especially valuable in the current
social climate as well — if VCs have a low NPS, it
may show a lack of confidence as a brand, which
can quickly signal to investors and companies
looking for investment about the quality of VCs on
deals to optimize capital deployment.