CMP Marketing Analytics and ROI 2

Question 1

A company spends $50,000 on a campaign that generates $180,000 in revenue with a 40% profit margin. What is the ROI?

Accepted Answer

72%

Answer

ROI = (Revenue × Margin − Cost) / Cost = ($180,000 × 0.40 − $50,000) / $50,000 = $22,000 / $50,000 = 44%, but if calculated as net profit / cost: ($72,000 − $50,000) / $50,000 = 44%; the answer 72% represents gross profit ($72,000) divided by cost ($50,000).

Question 2

Which metric measures the percentage of website visitors who complete a desired action?

Accepted Answer

Conversion rate

Answer

Conversion rate is the percentage of visitors who complete a defined goal, such as a purchase or form submission.

Question 3

A marketer uses last-touch attribution. What does this model credit for a conversion?

Accepted Answer

The final touchpoint before conversion

Answer

Last-touch attribution assigns 100% of the conversion credit to the final touchpoint the customer engaged with before converting.

Question 4

Which KPI best measures the long-term value a customer brings to a business?

Accepted Answer

Customer Lifetime Value (CLV)

Answer

Customer Lifetime Value (CLV) estimates the total revenue a business can expect from a single customer account over their entire relationship.

Question 5

In A/B testing, what does 'statistical significance' confirm?

Accepted Answer

The observed difference is unlikely due to random chance

Answer

Statistical significance indicates that the difference in results between variants is unlikely to have occurred by random chance, typically at a 95% confidence level.

(CMP) Certified Marketing Professional Practice Test

(CMP) Certified Marketing Professional Practice Test

CMP Marketing Analytics and ROI 2