Marketing Analytics and ROI Flashcards

A brand's email campaign has a 25% open rate and a 5% click-to-open rate (CTOR). What does CTOR measure?

Answer: Clicks divided by emails opened

Click-to-open rate (CTOR) is calculated as unique clicks divided by unique opens, measuring how effective the email content was for those who opened it.

Which attribution model distributes credit equally across all touchpoints in a customer journey?

Answer: Linear attribution

Linear attribution assigns equal credit to every touchpoint in the conversion path, treating each interaction as equally important.

What is the primary purpose of a marketing dashboard?

Answer: To centralize and visualize KPIs for decision-making

A marketing dashboard centralizes key performance indicators in a visual format so marketers can quickly assess performance and make data-driven decisions.

A retailer's paid search campaign has a ROAS of 400%. What does this mean?

Answer: For every $1 spent, $4 is earned in revenue

ROAS (Return on Ad Spend) of 400% means $4 in revenue is generated for every $1 spent on advertising.

Which of the following is an example of a leading indicator in marketing?

Answer: Website traffic volume

Website traffic is a leading indicator because it can predict future conversions and revenue before those outcomes are realized.

What does 'incrementality testing' measure in marketing analytics?

Answer: The marginal revenue lift attributable to a specific marketing action

Incrementality testing isolates the causal impact of a marketing activity by comparing outcomes between an exposed group and a holdout control group.

A SaaS company tracks MRR (Monthly Recurring Revenue) churn at 5%. What does this metric represent?

Answer: 5% of recurring revenue is lost each month

MRR churn rate is the percentage of monthly recurring revenue lost due to cancellations or downgrades within a given month.