Performance Measurement & KPIs Flashcards
7 cards from real IS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Performance Measurement & KPIs flashcards as text
Which of the following is the correct formula for calculating Customer Lifetime Value (CLV)?
Answer: Average purchase value × purchase frequency × average customer lifespan
CLV = average purchase value × purchase frequency × average customer lifespan, representing the total revenue expected from a customer.
A sales leader notices that conversion rates are high early in the funnel but drop sharply at the proposal stage. What should they analyze?
Answer: The quality and relevance of proposals being sent
A drop at the proposal stage indicates the proposal content, pricing, or timing may not be aligned with prospect needs.
What is the primary purpose of tracking 'quota attainment' at the individual rep level?
Answer: To identify top performers, coaching needs, and forecast accuracy
Individual quota attainment reveals performance gaps, informs coaching decisions, and validates whether quotas are set appropriately.
When tracking KPIs, what does 'leading indicator' mean in an inbound sales context?
Answer: A metric that predicts future performance based on current activity
Leading indicators like call volume and demos scheduled predict future revenue, allowing managers to course-correct before the period ends.
A sales team's MRR grew 15% but churn rate also increased from 3% to 7%. What is the correct interpretation?
Answer: New revenue growth may be masking a retention problem that threatens long-term MRR
Rising churn erodes the base of recurring revenue, meaning the team must sell even faster just to maintain MRR, signaling a sustainability risk.
Which inbound sales KPI measures the average dollar value generated per sales call or conversation?
Answer: Revenue per call
Revenue per call helps assess the efficiency and value of each sales interaction as a unit of effort.
A manager wants to know if the sales team is spending time on the right prospects. Which KPI best answers this question?
Answer: Percentage of pipeline from ideal customer profile (ICP) accounts
Tracking ICP-fit percentage in the pipeline reveals whether reps are pursuing prospects most likely to close and retain.