Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Micro Focus International plc
  6. News
  7. Summary
    MCRO   GB00BJ1F4N75

MICRO FOCUS INTERNATIONAL PLC

(MCRO)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Micro Focus International : How does social responsibility relate to the Net Promoter« Score?

10/22/2021 | 10:44am EST
0

Social responsibility is no longer a 'niche', instead it touches every industry around the world, including the software industry. It is generally accepted that being socially responsible is increasingly important to customers within the software industry (Borderick et al. February 2021). However, the link between Net Promoter® Score (NPS) and being socially responsible has not been fully confirmed. Net Promoter® is a relationship metric that measures customer loyalty, and it is one of the best metrics for analysing the entire end-to-end Customer Experience.

Analysis

Indeed, in the latest competitive benchmark research, where we sample 15,420 respondents across the software industry, we trend every brand's NPS and correlate this with their socially responsible top-two box satisfaction. The results are quite clear, as figure 1 shows.

Figure 1: Double-Blind NPS and Top-Two Box Satisfaction with being socially responsible. The scales are arbitrary.

Calculating the specific r2 between being socially responsible and NPS, we find a value of 0.29, which shows a good positive correlation. From the data, software customers therefore 'increasingly' care about being socially responsible, and this is now proven to link to NPS. Therefore, software vendors must 'increasingly' take this brand image attribute seriously.

What can we do about it and how is Micro Focus performing?

Environment considerations are extremely important to customers, and Micro Focus should therefore leverage the latest findings.

Figure 2: Ranking analysis for FY21'RQ4 customers across the whole software landscape comparing how socially responsible customers perceive the brand.

Figure 2 presents the latest socially responsible 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. To take the value of 50% as an example, a way of interpreting this would be that 1 in 2 customers liked how socially responsible the brand is, and, conversely, 1 in 2 did not. Generally, then, on average, all software companies are not seen as socially responsible (average is 53% top-two box satisfaction) and Micro Focus ranking, or performing, above the industry average, with a score of 60%, is a great feat as we are placed within the top-quartile across all brands within the software industry. However, we must remember that Micro Focus is ranked 7% higher than the average competitor. To draw comparison against some of our competitors, we rank: 3% higher than IBM, 4% higher than Amazon, 4% higher than Microsoft,5% higher than Splunk, and 7% higher than BMC when it comes to social responsibility.

*Sample Size Worldwide: n=15,420. Micro Focus n=1,085, and all competitors n=14,335.

Conclusions

We know that being socially responsible is positively correlated with the relationship metric Net Promoter®, and organisations must share, and communicate, 'how' environmentally friendly and socially responsible they are. This means we should think more about the broader vision behind software, and how we can engage customers with this vision. To gain and maintain customer loyalty, it is critical that we accelerate and integrate social responsibility into every aspect of our company brand. We must give customers the visibility to make fair assessments of our technology, through consumer-level communication about product lifecycles, supply chains, and the environmental impact of our software. Transparency and traceability not only enhance customer loyalty, feedback, and satisfaction, but equally these extend to the stock market where investors are looking for investible and sustainable projects with good long-term value and rates of return. Clearly, stakeholders, asset owners, and customers value companies differently based on their commitment to social responsibility. We should continue to consider our impact on people, communities, and climate goals as we build and transform the company roadmap.

Authors: Dr. James D. Borderick, Rosalind Skillen and Kerry Barrett.

Post Views: 1

Disclaimer

Micro Focus International plc published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 14:43:03 UTC.


ę Publicnow 2021
All news about MICRO FOCUS INTERNATIONAL PLC
03:01aUK's Micro Focus targets better revenue in two years on turnaround boost
RE
02:59aMicro Focus Targets Up To 2% Medium-Term Revenue Growth
MT
11/25DXC Technology and Micro Focus Announce a Strategic Initiative to Accelerate Mainframe ..
AQ
11/19Micro Focus reports revenue dip as it continues single platform shift
AQ
11/18FTSE 100 to Fall After Downbeat Asia Trading
DJ
11/18Micro Focus International Expects FY21 Revenue to Fall 5% to $3 Billion
MT
11/12MICRO FOCUS INTERNATIONAL : If We Really Want to Drive Change, We Have to Work Together
PU
11/11Micro Focus Launches IDOL Law Enforcement Media Analytics (LEMA) Solution
PR
11/11Micro Focus International plc Launches IDOL Law Enforcement Media Analytics Solution
CI
11/03Software group Micro Focus to sell portfolio for $375m, causing shares to climb
AQ
More news
Analyst Recommendations on MICRO FOCUS INTERNATIONAL PLC
More recommendations
Financials (USD)
Sales 2021 2 855 M - -
Net income 2021 -262 M - -
Net Debt 2021 4 188 M - -
P/E ratio 2021 -4,64x
Yield 2021 5,56%
Capitalization 1 535 M 1 534 M -
EV / Sales 2021 2,00x
EV / Sales 2022 1,90x
Nbr of Employees 11 600
Free-Float 99,5%
Chart MICRO FOCUS INTERNATIONAL PLC
Duration : Period :
Micro Focus International plc Technical Analysis Chart | MCRO | GB00BJ1F4N75 | MarketScreener
Technical analysis trends MICRO FOCUS INTERNATIONAL PLC
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Last Close Price 5,01 $
Average target price 9,47 $
Spread / Average Target 89,0%
EPS Revisions
Managers and Directors
Stephen Edward Murdoch Chief Executive Officer & Director
Matthew Ashley Chief Financial Officer & Director
Gregory Lock Non-Executive Chairman
Paul Rodgers Chief Operating Officer
Jane Smithard Chief Legal Officer & Group General Counsel
Sector and Competitors
1st jan.Capi. (M$)
MICRO FOCUS INTERNATIONAL PLC-11.25%1 534
MICROSOFT CORPORATION51.35%2 527 411
SEA LIMITED49.69%165 256
ATLASSIAN CORPORATION PLC70.05%100 517
DASSAULT SYSTÈMES SE60.79%79 176
ROBLOX CORPORATION0.00%74 878