IS Performance Measurement & KPIs 2

Question 1

A sales rep closes 12 deals out of 60 qualified opportunities in a month. What is their close rate?

Accepted Answer

20%

Answer

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?

Accepted Answer

Funnel conversion rate

Answer

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?

Accepted Answer

Number of deals × win rate × deal size ÷ sales cycle length

Answer

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?

Accepted Answer

Whether reps are discounting too aggressively

Answer

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?

Accepted Answer

Weighted pipeline value

Answer

Weighted pipeline value adjusts each opportunity's value by its probability of closing, reflecting true pipeline quality.

(IS) Inbound Sales Certification Practice Test