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Sales Performance Metrics & Analysis Flashcards

7 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Sales Performance Metrics & Analysis flashcards as text

  1. What is the primary difference between a 'lagging indicator' and a 'leading indicator' in sales performance measurement?

    Answer: Leading indicators predict future results; lagging indicators confirm past results

    Leading indicators (e.g., number of demos) predict future outcomes, while lagging indicators (e.g., closed revenue) confirm what already happened.

  2. A company's Customer Acquisition Cost (CAC) is $5,000 and the average Customer Lifetime Value (CLV) is $15,000. What does this CLV:CAC ratio suggest?

    Answer: The ratio is healthy, indicating strong return on sales investment

    A CLV:CAC ratio of 3:1 is generally considered healthy, meaning the customer generates three times the cost to acquire them.

  3. What does 'Average Revenue Per Account (ARPA)' help a sales manager evaluate?

    Answer: The revenue efficiency and upsell potential of the customer base

    ARPA reveals how much revenue each account contributes on average, helping managers assess expansion and upsell opportunities.

  4. A rep's average deal size has decreased 25% over two quarters despite stable close rates. Which investigation is MOST appropriate?

    Answer: Assess whether the rep is discounting heavily or targeting smaller prospects

    Declining average deal size with stable close rates points to discount behavior or a shift toward smaller opportunities, both of which require coaching.

  5. Which of the following is the MOST accurate definition of 'Net Revenue Retention (NRR)'?

    Answer: Total revenue retained from existing customers including expansions minus churn and contractions

    NRR measures recurring revenue from existing customers factoring in upsells, cross-sells, downgrades, and churn, showing growth from the base.

  6. In a balanced scorecard approach to sales performance, which combination of metrics provides the MOST complete picture?

    Answer: Financial results, customer metrics, internal process metrics, and learning/growth metrics

    The balanced scorecard framework evaluates performance across financial, customer, internal process, and learning/growth dimensions for a holistic view.

  7. A manager wants to measure how effectively reps turn prospects into customers specifically at the proposal stage. Which metric should be used?

    Answer: Stage-to-stage conversion rate (proposal to close)

    Stage-to-stage conversion rates isolate performance at specific funnel stages, revealing where proposals fail to convert into closed deals.