How do we measure how strategic we are to our customers?
Micro Focus uses double-blind competitive benchmarking in order to gauge how well we are doing against the competition. This strategy means we can understand how we are performing with a high degree of statistical accuracy using a highly repeatable and scientific method. There are a number of customer lifecycle touchpoints and brand image attributes that are tracked, and ‘How strategic do you feel this software is for your business? ’ is one of them.
How important is ‘being strategic’ as a touchpoint?
Micro Focus, via Competitive Benchmarking and driver modelling, also knows that ‘being strategic to our customers’ is one of the most important touchpoints. In fact, it contributes 9% of the reason customers in software gave the double-blind NPS that they did. This is important to realise since all touchpoints and brand image attributes contribute in some way to the overall ‘relationship’ metric with a company, and thus, using the right metric at the right time is not only important, but necessary (but that’s a topic for another time). Critically, these touchpoints along the customer journey do not have equal importance.
So how are Micro Focus performing against the competition in ‘How strategic do you feel this software is for your business’?
The figure above presents the “How strategic do you feel this software is for your business” top-two box satisfaction for each brand at the worldwide level in software. This percentage shows the number of customers responding with the top scores. A way of interpreting this is if there is a value of 50%, then 1 in 2 of customers thought they were providing strategic software with and 1 in 2 didn’t. On average, most software companies are not rated as being that strategic and so for Micro Focus to be sixth in the industry, out of 40 competitors, is a great feat indeed. Micro Focus is ranked 5% better than the average competitor in the industry and is 5th out of all competitors with a top-two box satisfaction of 56%. When we compare against some of our competitors, we see that for providing strategic software for our customers, we are ranked 1% better than IBM (on 55%), 2% better than Google, 3% better than Microsoft, 4% better than Broadcom, 6% better than Splunk and 7% more strategic than ServiceNow.
Why is the Competitive Benchmark industry defensible?
We do not know who the respondents are, and they themselves do not know that Micro Focus is sponsoring the study, and thus, this study has a dramatically lower bias than other surveys. We can safely say that the data analytics is performed at the 90% Confidence Level, which is unheard of in the industry. This means if any of our competitors performed the same study, they would have the same results. Couple these points with a data sample size of over 15,000 respondents per rolling quarter and we have a Benchmark that truly is industry defensible.
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