MO Performance Measurement & KPIs 3 — Questions and Answers
Question 1: A SaaS company's monthly churn rate is 5%. What is the approximate average customer lifespan?
- 5 months
- 10 months
- 20 months (Correct answer)
- 50 months
Correct answer: 20 months
Average customer lifespan = 1 / churn rate = 1 / 0.05 = 20 months.
Question 2: Which metric measures the percentage of a target audience reached by a marketing campaign at least once?
- Frequency
- Reach (Correct answer)
- GRP (Gross Rating Point)
- Impressions
Correct answer: Reach
Reach is the percentage of the target audience exposed to a campaign at least once during a given period.
Question 3: A paid search campaign generates $50,000 revenue from $10,000 in ad spend. What is the Return on Ad Spend (ROAS)?
- 2x
- 4x
- 5x (Correct answer)
- 10x
Correct answer: 5x
ROAS = revenue / ad spend = $50,000 / $10,000 = 5x, meaning $5 generated per $1 spent.
Question 4: A content marketing team measures 'time on page' as a KPI. A sudden drop in this metric most likely indicates what?
- Improved site load speed
- Reduced content relevance or quality (Correct answer)
- Higher organic traffic volume
- Better mobile optimization
Correct 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.
Question 5: Which attribution model gives 100% of conversion credit to the last marketing touchpoint before purchase?
- Linear attribution
- Time decay attribution
- Last-click attribution (Correct answer)
- Data-driven attribution
Correct answer: Last-click attribution
Last-click attribution assigns all conversion credit to the final touchpoint, ignoring all earlier interactions in the customer journey.
Question 6: A brand tracks 'Share of Voice (SOV)' in its industry. If the brand's SOV exceeds its market share, this is typically considered:
- A warning sign of overspending
- An indicator of growth potential (Correct answer)
- A sign of decreasing brand relevance
- Evidence of poor targeting
Correct answer: An indicator of growth potential
When SOV exceeds market share (Excess Share of Voice / eSOV), research shows it predicts future market share growth.
Question 7: Which of the following is a lagging indicator in marketing performance measurement?
- Website traffic trend
- Lead pipeline volume
- Annual revenue growth (Correct answer)
- Content engagement rate
Correct answer: Annual revenue growth
Annual revenue growth is a lagging indicator because it reflects past performance rather than predicting future outcomes.
MO Performance Measurement & KPIs 3
A SaaS company's monthly churn rate is 5%.
What is the approximate average customer lifespan?