Performance Measurement & KPIs Flashcards

A SaaS company's monthly churn rate is 5%. What is the approximate average customer lifespan?

Answer: 20 months

Average customer lifespan = 1 / churn rate = 1 / 0.05 = 20 months.

Which metric measures the percentage of a target audience reached by a marketing campaign at least once?

Answer: Reach

Reach is the percentage of the target audience exposed to a campaign at least once during a given period.

A paid search campaign generates $50,000 revenue from $10,000 in ad spend. What is the Return on Ad Spend (ROAS)?

Answer: 5x

ROAS = revenue / ad spend = $50,000 / $10,000 = 5x, meaning $5 generated per $1 spent.

A content marketing team measures 'time on page' as a KPI. A sudden drop in this metric most likely indicates what?

Answer: Reduced content relevance or quality

A drop in time on page typically signals that visitors are not finding the content engaging or relevant to their needs.

Which attribution model gives 100% of conversion credit to the last marketing touchpoint before purchase?

Answer: Last-click attribution

Last-click attribution assigns all conversion credit to the final touchpoint, ignoring all earlier interactions in the customer journey.

A brand tracks 'Share of Voice (SOV)' in its industry. If the brand's SOV exceeds its market share, this is typically considered:

Answer: An indicator of growth potential

When SOV exceeds market share (Excess Share of Voice / eSOV), research shows it predicts future market share growth.

Which of the following is a lagging indicator in marketing performance measurement?

Answer: Annual revenue growth

Annual revenue growth is a lagging indicator because it reflects past performance rather than predicting future outcomes.