Practice Test Geeks(IS) Inbound Sales Certification Practice Test
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Performance Measurement & KPIs Flashcards

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

Read the first 7 Performance Measurement & KPIs flashcards as text

  1. What is 'win/loss ratio' and why is it a valuable KPI for inbound sales teams?

    Answer: The ratio of deals won to deals lost; it reveals competitive and process effectiveness

    Win/loss ratio benchmarks competitive positioning and sales effectiveness, and analyzing lost deals identifies specific improvement areas.

  2. An inbound sales rep has a high number of activities but consistently misses quota. Which diagnostic approach is most appropriate?

    Answer: Audit the quality and targeting of their activities, not just the quantity

    High activity with low results typically indicates quality or focus issues — the rep may be contacting the wrong prospects or using ineffective messaging.

  3. Which formula correctly calculates Customer Acquisition Cost (CAC)?

    Answer: Total sales + marketing spend ÷ number of new customers acquired

    CAC = total sales and marketing expenses divided by the number of new customers acquired in a given period.

  4. A healthy inbound sales business typically targets a CLV to CAC ratio of at least:

    Answer: 3:1

    A 3:1 CLV to CAC ratio is the standard benchmark, meaning each customer generates at least 3× what it cost to acquire them.

  5. When a sales manager reviews 'stage-by-stage conversion rates,' what specific risk are they trying to identify?

    Answer: Where deals are stalling or dropping out of the pipeline

    Stage-by-stage conversion analysis pinpoints which funnel step loses the most opportunities, directing coaching and process improvement efforts.

  6. What does 'pipeline coverage ratio' measure, and what does a ratio below 3x typically signal?

    Answer: The ratio of pipeline value to quota; below 3x signals insufficient pipeline to hit quota

    Pipeline coverage below 3x quota means there aren't enough opportunities to absorb typical losses and still hit the revenue target.

  7. A sales team tracks 'time to first response' as a KPI. Research shows that responding to inbound leads within how many minutes maximizes conversion?

    Answer: 5 minutes

    Studies show responding to inbound leads within 5 minutes dramatically increases contact and qualification rates compared to slower responses.