Ecommerce platforms Snapdeal and Flipkart have begun to distance themselves from focusing on their gross merchandise value (or GMV) in India, and are instead giving priority to their net promoter score (or NPS). Leading ecommerce companies in India have used the GMV metric for years, but it has received criticisms from some quarters for not being a valuable metric to follow. Co-found of Snapdeal, Kunal Bahl, said that “GMV by itself is not necessarily a good metric that demonstrates anything else outside the value of goods transacted.” The NPS metric is used to measure customer loyalty as opposed to the total value of goods sold through a marketplace, and is the model favoured by global retail giant Amazon. However, this switch has also attracted critics as some have suggested that the new NPS metric says very little about a business itself.
