MO Performance Measurement & KPIs 2 — Questions and Answers
Question 1: A marketing team's email campaign has a 25% open rate and a 3% click-through rate. What does the click-to-open rate (CTOR) equal?
- 3%
- 8%
- 12% (Correct answer)
- 28%
Correct answer: 12%
CTOR = clicks / opens = 3% / 25% = 12%, measuring engagement among those who actually opened the email.
Question 2: Which metric best measures how efficiently a marketing campaign converts awareness into actual purchases?
- Impressions
- Conversion rate (Correct answer)
- Share of voice
- Bounce rate
Correct answer: Conversion rate
Conversion rate directly measures the percentage of prospects who complete the desired action (purchase), reflecting campaign efficiency.
Question 3: A brand's NPS (Net Promoter Score) drops from +45 to +30 after a product recall. What does this indicate?
- Customer acquisition costs increased
- Customer loyalty and advocacy declined (Correct answer)
- Market share grew
- Revenue per customer rose
Correct answer: Customer loyalty and advocacy declined
NPS measures customer loyalty and willingness to recommend; a declining score signals reduced advocacy and satisfaction.
Question 4: When calculating Customer Lifetime Value (CLV), which formula component accounts for how long a customer stays with the brand?
- Acquisition cost
- Average order value
- Customer retention rate / churn rate (Correct answer)
- Gross margin percentage
Correct answer: Customer retention rate / churn rate
Retention rate (or its inverse, churn rate) determines average customer lifespan, a core multiplier in CLV calculations.
Question 5: A company spends $200,000 on a trade show and acquires 400 leads. What is the cost per lead (CPL)?
- $200
- $400
- $500 (Correct answer)
- $800
Correct answer: $500
CPL = total spend / total leads = $200,000 / 400 = $500 per lead.
Question 6: Which KPI would a CMO use to evaluate whether marketing is contributing to pipeline growth in a B2B context?
- Follower growth rate
- Marketing-qualified leads (MQLs) (Correct answer)
- Page views per session
- Ad frequency
Correct answer: Marketing-qualified leads (MQLs)
MQLs represent leads deemed likely to become customers based on marketing engagement, directly linking marketing to revenue pipeline.
Question 7: A retailer's cart abandonment rate is 70%. Which marketing KPI directly helps measure recovery efforts for those abandoned carts?
- Customer acquisition cost
- Cart recovery rate (Correct answer)
- Organic search ranking
- Brand sentiment score
Correct answer: Cart recovery rate
Cart recovery rate measures the percentage of abandoned carts successfully converted via remarketing or follow-up, directly assessing recovery campaign effectiveness.
MO Performance Measurement & KPIs 2
A marketing team's email campaign has a 25% open rate and a 3% click-through rate.
What does the click-to-open rate (CTOR) equal?