PCM Metrics & Analytics 2 — Questions and Answers
Question 1: A marketer notices that email open rates are high but click-through rates are very low. What does this most likely indicate?
- Subject lines are weak
- Email content or CTAs are not compelling enough (Correct answer)
- The email list is too small
- Unsubscribe rates are rising
Correct answer: Email content or CTAs are not compelling enough
High open rates but low CTRs indicate the subject line works but the body content or call-to-action fails to motivate action.
Question 2: Which attribution model gives equal credit to every touchpoint in the customer journey?
- Last-touch attribution
- First-touch attribution
- Linear attribution (Correct answer)
- Time-decay attribution
Correct answer: Linear attribution
Linear attribution distributes conversion credit equally across all touchpoints in the customer journey.
Question 3: A company's customer acquisition cost (CAC) is $200 and its average customer lifetime value (CLV) is $600. What does this CLV:CAC ratio indicate?
- The business is unprofitable and needs immediate action
- The business has a healthy return on acquisition spend (Correct answer)
- CAC is too high relative to revenue
- The ratio is too low to be sustainable
Correct answer: The business has a healthy return on acquisition spend
A CLV:CAC ratio of 3:1 is generally considered healthy, indicating the company earns three times what it spends to acquire a customer.
Question 4: What does a high bounce rate on a landing page primarily signal?
- Strong brand recognition
- Poor ad targeting or irrelevant page content (Correct answer)
- High organic traffic volume
- Effective remarketing campaigns
Correct answer: Poor ad targeting or irrelevant page content
A high bounce rate suggests visitors leave immediately because the page content does not match their expectations or the ad's promise.
Question 5: In A/B testing, what is the purpose of a control group?
- To test two new variants simultaneously
- To provide a baseline against which the variant is measured (Correct answer)
- To segment the audience by demographics
- To eliminate statistical noise from the test
Correct answer: To provide a baseline against which the variant is measured
The control group represents the unchanged baseline, allowing marketers to isolate the effect of the single variable being tested.
Question 6: Which metric best measures the effectiveness of a social media community in driving business outcomes?
- Total follower count
- Post frequency
- Engagement rate relative to conversions (Correct answer)
- Number of hashtags used
Correct answer: Engagement rate relative to conversions
Linking engagement rate to downstream conversions connects social activity to actual business value, making it more meaningful than vanity metrics.
Question 7: What is the primary limitation of using last-touch attribution in a multi-channel marketing environment?
- It is too complex to implement
- It overvalues early awareness channels
- It credits only the final touchpoint and ignores earlier influences (Correct answer)
- It requires a minimum of five touchpoints
Correct answer: It credits only the final touchpoint and ignores earlier influences
Last-touch attribution ignores all prior touchpoints that nurtured the prospect, leading to underinvestment in awareness and consideration channels.
A marketer notices that email open rates are high but click-through rates are very low.
What does this most likely indicate?