CMP Marketing Analytics and ROI Questions and Answers

Question 1

A marketing campaign for an e-commerce company cost $20,000.
The campaign generated $100,000 in revenue from the products sold.
The Cost of Goods Sold (COGS) for those products was $40,000.
What is the Marketing Return on Investment (MROI) for this campaign?

Accepted Answer

200%

Answer

400%

Answer

500%

Answer

150%

Question 2

In the context of a growing SaaS (Software as a Service) business, which of the following LTV:CAC ratios is generally considered a benchmark for a healthy and sustainable business model?

Accepted Answer

3:1

Answer

1:1

Answer

1:3

Answer

5:1 or higher

Question 3

A marketing analyst wants to assign credit to every touchpoint in the customer journey but also wants to emphasize the interactions that occurred most recently before a sale. Which marketing attribution model best aligns with this objective?

Accepted Answer

Time-Decay Attribution

Answer

Last-Touch Attribution

Answer

Linear Attribution

Answer

First-Touch Attribution

Question 4

An online retailer's recent ad campaign is generating a very high click-through rate (CTR) and a significant increase in website traffic. However, the overall sales and revenue have not increased proportionally. To understand this discrepancy, which metric should a marketing analyst investigate first?

Accepted Answer

Conversion Rate

Answer

Cost Per Click (CPC)

Answer

Impression Share

Answer

Customer Lifetime Value (LTV)

Question 5

Which of the following best describes a primary difference between Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA)?

Accepted Answer

MMM provides a strategic, top-down view using aggregated data, while MTA offers a granular, bottom-up view of individual digital touchpoints.

Answer

MMM uses user-level data for real-time tactical optimization, while MTA uses aggregated data for strategic planning.

Answer

MMM is primarily focused on digital channels, while MTA provides a holistic view of both online and offline marketing.

Answer

MMM is a newer technique that is replacing MTA due to privacy regulations.

Question 6

A company is analyzing two customer segments. Segment A has a Customer Lifetime Value (LTV) of $1,000 and a Customer Acquisition Cost (CAC) of $400. Segment B has an LTV of $1,500 and a CAC of $500. With a limited marketing budget, which segment represents the more efficient investment and why?

Accepted Answer

Segment B, because its LTV:CAC ratio is higher.

Answer

Segment A, because its Customer Acquisition Cost is lower.

Answer

Segment B, because it has a higher Customer Lifetime Value.

Answer

Both are equally efficient because the difference between LTV and CAC is the same for both.