IS Performance Measurement & KPIs 2 — Questions and Answers
Question 1: A sales rep closes 12 deals out of 60 qualified opportunities in a month. What is their close rate?
- 15%
- 20% (Correct answer)
- 25%
- 30%
Correct answer: 20%
Close rate = (deals closed / qualified opportunities) × 100 = (12/60) × 100 = 20%.
Question 2: Which metric best measures how efficiently a sales team converts leads into customers across the entire funnel?
- Average deal size
- Funnel conversion rate (Correct answer)
- Monthly call volume
- Customer satisfaction score
Correct answer: Funnel conversion rate
Funnel conversion rate tracks the percentage of leads that become customers across all pipeline stages.
Question 3: In inbound sales, 'velocity' refers to which composite metric?
- Speed of follow-up calls
- Number of deals × win rate × deal size ÷ sales cycle length (Correct answer)
- Total revenue divided by headcount
- Average time a rep spends on each call
Correct answer: Number of deals × win rate × deal size ÷ sales cycle length
Sales velocity measures revenue generated per unit of time using opportunities, win rate, deal value, and cycle length.
Question 4: A team's average deal size drops from $5,000 to $3,500 over a quarter. Which action should a sales manager investigate first?
- Whether reps are discounting too aggressively (Correct answer)
- Whether the CRM software needs an upgrade
- Whether the company's logo needs refreshing
- Whether inbound traffic volume has increased
Correct answer: Whether reps are discounting too aggressively
A declining average deal size often signals excessive discounting or a shift toward smaller accounts.
Question 5: Which KPI directly measures the quality of a sales rep's pipeline rather than just its size?
- Total pipeline value
- Weighted pipeline value (Correct answer)
- Number of open opportunities
- Total calls made
Correct answer: Weighted pipeline value
Weighted pipeline value adjusts each opportunity's value by its probability of closing, reflecting true pipeline quality.
Question 6: What does a rising 'days to close' metric most likely indicate for an inbound sales team?
- Reps are closing deals faster
- The sales process has become more efficient
- Prospects are taking longer to make decisions or there are process bottlenecks (Correct answer)
- Lead quality has dramatically improved
Correct answer: Prospects are taking longer to make decisions or there are process bottlenecks
Increasing days to close signals friction in the buying process, poor lead qualification, or internal handoff delays.
Question 7: A new SDR has a 45% connect rate but only a 5% meeting-set rate. What does this pattern suggest?
- The SDR is reaching people but struggling to convert conversations into meetings (Correct answer)
- The SDR's call volume is too low
- The SDR's territory has poor prospects
- The SDR's connect rate is the primary problem to fix
Correct answer: The SDR is reaching people but struggling to convert conversations into meetings
A high connect rate with a low meeting-set rate points to a messaging or conversation-quality issue, not a prospecting volume problem.
IS Performance Measurement & KPIs 2
A sales rep closes 12 deals out of 60 qualified opportunities in a month.
What is their close rate?