PCM Metrics & Analytics 3 — Questions and Answers
Question 1: A marketer wants to measure how many unique prospects entered a nurture funnel during Q3. Which metric should they track?
- Conversion rate
- Marketing qualified leads (MQLs) (Correct answer)
- Net Promoter Score
- Share of voice
Correct answer: Marketing qualified leads (MQLs)
MQLs count prospects who meet predefined criteria indicating readiness for nurturing, making them the right metric for funnel entry volume.
Question 2: Which statistical concept determines whether A/B test results are due to the tested variable rather than random chance?
- Confidence interval
- Statistical significance (Correct answer)
- Regression to the mean
- Cohort variance
Correct answer: Statistical significance
Statistical significance (typically p < 0.05) confirms that observed differences between variants are unlikely to be due to random chance.
Question 3: What does a decreasing Cost Per Acquisition (CPA) trend over time generally indicate for a paid campaign?
- Ad fatigue is setting in
- Campaign efficiency is improving (Correct answer)
- Reach is declining
- The conversion window is too short
Correct answer: Campaign efficiency is improving
A declining CPA means the campaign is acquiring customers at lower cost, indicating improved targeting, creative performance, or bidding strategy.
Question 4: A brand measures Share of Voice (SOV) at 30% while its market share is 20%. What strategic implication does this suggest?
- The brand is over-spending relative to competitors
- The brand has an Excess Share of Voice that may drive market share growth (Correct answer)
- The brand should immediately reduce advertising spend
- The brand's SOV and market share are misaligned due to poor creative
Correct answer: The brand has an Excess Share of Voice that may drive market share growth
Excess Share of Voice (eSOV = SOV minus market share) is a proven indicator of future market share growth according to the Binet & Field framework.
Question 5: Which of the following is an example of a lagging indicator in marketing performance measurement?
- Website traffic by channel
- Email open rates
- Annual revenue growth (Correct answer)
- Ad impression frequency
Correct answer: Annual revenue growth
Annual revenue growth is a lagging indicator because it reflects the outcome of past marketing activities rather than predicting future performance.
Question 6: What does a funnel conversion rate of 2% between awareness and consideration stages mean?
- 2% of aware prospects also made a purchase
- 2% of people who became aware moved to actively considering the brand (Correct answer)
- The campaign reached 2% of the target market
- 2% of website visitors converted to leads
Correct answer: 2% of people who became aware moved to actively considering the brand
A stage-to-stage funnel conversion rate measures the percentage of people who progress from one defined stage to the next.
Question 7: A marketer sees a 40% open rate on a re-engagement email campaign targeting dormant subscribers. How should this be interpreted?
- The campaign successfully reactivated 40% of the dormant segment
- The headline was strong enough to prompt opens but requires purchase data to assess full success (Correct answer)
- 40% of the total email list is now active
- The deliverability rate is 40%
Correct answer: The headline was strong enough to prompt opens but requires purchase data to assess full success
Opens indicate initial engagement but re-engagement success should be measured against downstream actions like clicks, purchases, or reactivation status.
PCM Metrics & Analytics 3
A marketer wants to measure how many unique prospects entered a nurture funnel during Q3.
Which metric should they track?