CAM Performance Analysis 2 — Questions and Answers
Question 1: Which metric best measures the efficiency of converting sales opportunities into closed deals?
- Win rate (Correct answer)
- Average deal size
- Sales cycle length
- Customer lifetime value
Correct answer: Win rate
Win rate measures the percentage of opportunities that result in closed deals, directly reflecting sales conversion efficiency.
Question 2: A CAM notices that a key account's monthly recurring revenue (MRR) has declined 15% over two quarters. What is the FIRST step?
- Immediately offer a discount
- Conduct a root cause analysis (Correct answer)
- Escalate to senior management
- Close the account
Correct answer: Conduct a root cause analysis
Root cause analysis identifies whether the decline stems from product issues, competition, budget cuts, or service failures before taking corrective action.
Question 3: Which of the following is a lagging indicator in account performance analysis?
- Pipeline coverage ratio
- Number of active support tickets
- Annual revenue generated (Correct answer)
- Engagement score
Correct answer: Annual revenue generated
Annual revenue generated is a lagging indicator because it reflects past performance rather than predicting future outcomes.
Question 4: A customer health score typically combines which types of data?
- Only financial metrics
- Product usage, support activity, and engagement data (Correct answer)
- Social media mentions only
- Competitor benchmarking data
Correct answer: Product usage, support activity, and engagement data
Customer health scores aggregate product usage, support interactions, and engagement signals to predict retention and expansion likelihood.
Question 5: What does a negative Net Revenue Retention (NRR) rate indicate?
- Expansion revenue exceeds churn
- Churn and contraction exceed expansion revenue (Correct answer)
- New customer acquisition is strong
- Customer satisfaction is high
Correct answer: Churn and contraction exceed expansion revenue
Negative NRR means revenue lost from churned and contracted accounts exceeds revenue gained from expansions within the existing customer base.
Question 6: Which analysis technique segments accounts based on revenue potential and relationship strength?
- SWOT analysis
- Account tiering matrix (Correct answer)
- Break-even analysis
- Pareto analysis
Correct answer: Account tiering matrix
An account tiering matrix classifies accounts by strategic value and relationship depth to prioritize resource allocation.
Question 7: When evaluating account performance, what does 'share of wallet' measure?
- The customer's total budget allocated to your company versus competitors (Correct answer)
- The number of products a customer uses
- The customer's overall profitability
- Revenue per sales representative
Correct answer: The customer's total budget allocated to your company versus competitors
Share of wallet is the percentage of a customer's total spending in a category that your company captures compared to all other vendors.
CAM Performance Analysis 2
Which metric best measures the efficiency of converting sales opportunities into closed deals?