Performance Measurement & KPIs Flashcards

A marketing team's email campaign has a 25% open rate and a 3% click-through rate. What does the click-to-open rate (CTOR) equal?

Answer: 12%

CTOR = clicks / opens = 3% / 25% = 12%, measuring engagement among those who actually opened the email.

Which metric best measures how efficiently a marketing campaign converts awareness into actual purchases?

Answer: Conversion rate

Conversion rate directly measures the percentage of prospects who complete the desired action (purchase), reflecting campaign efficiency.

A brand's NPS (Net Promoter Score) drops from +45 to +30 after a product recall. What does this indicate?

Answer: Customer loyalty and advocacy declined

NPS measures customer loyalty and willingness to recommend; a declining score signals reduced advocacy and satisfaction.

When calculating Customer Lifetime Value (CLV), which formula component accounts for how long a customer stays with the brand?

Answer: Customer retention rate / churn rate

Retention rate (or its inverse, churn rate) determines average customer lifespan, a core multiplier in CLV calculations.

A company spends $200,000 on a trade show and acquires 400 leads. What is the cost per lead (CPL)?

Answer: $500

CPL = total spend / total leads = $200,000 / 400 = $500 per lead.

Which KPI would a CMO use to evaluate whether marketing is contributing to pipeline growth in a B2B context?

Answer: Marketing-qualified leads (MQLs)

MQLs represent leads deemed likely to become customers based on marketing engagement, directly linking marketing to revenue pipeline.

A retailer's cart abandonment rate is 70%. Which marketing KPI directly helps measure recovery efforts for those abandoned carts?

Answer: Cart recovery rate

Cart recovery rate measures the percentage of abandoned carts successfully converted via remarketing or follow-up, directly assessing recovery campaign effectiveness.