What is a Net Promoter Score (NPS)?
NPS is a customer loyalty and satisfaction measurement taken from asking customers how likely they are to recommend a product or service to others on a scale of 0-10.
But, NPS is just one insight into your customer relationships. It’s a broad, overall measurement of customer sentiment and, because of this, NPS scores can be influenced by a variety of factors and can vary significantly from industry to industry.
There isn’t a universally agreed-upon “good” or “standard” NPS because it depends so much on context. However, some general guidelines can be used:
A positive NPS (>0) is generally considered good.
An NPS of +50 is generally considered excellent.
An NPS of +70 is exceptional and rare, typically seen in monopolistic or highly respected industries.
Industry average NPS scores can vary greatly. For instance, consulting businesses might have an average NPS of around 68, whereas communication and media companies might an average score of 19 or even negative scores.
In the context of Managed Service Providers (MSP) and contingent labour, it’s not as straightforward because the NPS can be influenced by factors like the job market’s overall state, the efficiency of the recruitment process, the candidate’s experience, and the level of service provided by the MSP.
Why is NPS important?
Net Promoter Scores are generally highly regarded and widely used within many industries as a key measure of customer loyalty. They can provide a quick snapshot of how customers feel about a company and its products or services.
Firstly, the NPS system is simple and easy to understand. It’s a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” This makes it easy for customers to respond and for businesses to analyse the results.
Secondly, they can be used to benchmark against competitors within the same industry. This can give you an idea of how they’re doing relative to their competition.
NPS measurement across different MSP stakeholder groups
When it comes to the recruitment and management of your contingent labour, the NPS is a vital tool for measuring satisfaction and loyalty among two different stakeholder groups: your hiring managers and contractors. Each group offers unique insights that are valuable for various reasons.
Hiring manager NPS
This measurement assesses the hiring managers’ satisfaction with the recruitment process and the quality of candidates presented. A high NPS from this group suggests a well-functioning recruitment process.
Contractors can provide feedback about a company’s onboarding process, management effectiveness, and overall satisfaction with their assignments. Their views can help identify opportunities for improvement in contractor management.
Combining these NPS scores can offer a comprehensive understanding of the MSP's effectiveness. Each score provides a unique perspective, and by analysing both of them, you can identify strengths and weaknesses at various stages of the recruitment process.
NPS as a selection criterion
When selecting an MSP, one key indicator you should consider is their NPS. It’s not just a number; it’s a reflection of their quality of service and dedication to their customers; both clients and candidates alike.
A high NPS means an MSP is highly recommended by its current customers. This speaks volumes about their reputation and the trust they’ve built in the industry. When you see a high NPS, it assures you that you’re entrusting your contingent labour needs to a provider others have had positive experiences with and are willing to vouch for.
The importance of NPS doesn’t stop at reputation. It’s also about retention.
If an MSP has a high NPS, it suggests their clients keep coming back. This consistency can be a great advantage for you. It means they’ve fostered long-term relationships and will likely bring that same dedication to your business.
It also signifies a positive candidate experience. Remember, recruitment isn’t just about filling roles; it’s about finding the right fit for your organisation. An MSP that treats its candidates well will attract a larger, more diverse talent pool, giving you a better selection of potential hires.
An MSP’s high NPS score also acts as a reliable benchmark. They’re not satisfied with just doing well; they’re striving for excellence by continually seeking feedback and making improvements. This commitment to continuous progress is crucial in the ever-evolving recruitment landscape where skills shortages continue to be the number one challenge many industries face. It also ensures the provider will adapt, refine, and optimise its strategies to deliver the best results for your company.
“NPS scores are not just numbers on a chart; they reflect the trust and loyalty our customers place in us. The feedback we get is a valuable gift because it highlights areas where we excel and areas where we can improve, ultimately helping us refine and enhance our service offering,” said Lindsay Harrison, Rullion’s Chief Customer Officer.
“Our account teams live and breathe the ethos that true success is measured by how happy our customers are, which is why delighting customers is our goal. As cliché as it might sound, we’re driven by an unwavering commitment to create exceptional experiences for both our clients and candidates, and we continuously strive to raise the bar and exceed our customers’ expectations, something I believe our NPS scores across all our MSP accounts reflect.”
The final takeaway
In a nutshell, partnering with an MSP that boasts a high NPS means aligning with a trusted entity, committed to continual improvement, nurturing strong relationships with clients, and excelling in service delivery. Remember, NPS is more than a number; it’s a testament to commitment and quality in the world of managed services.
Are you looking for an MSP that lives and breathes the value of customer satisfaction? With an overall NPS score of 58.3 across all our MSP accounts, we’re committed to delivering exceptional experiences for both clients and candidates. Contact us today by filling out the form below.