SaaS Trivia 3

Question 1

Which of the following best describes 'multi-tenancy' in SaaS architecture?

Accepted Answer

A single instance of software serves multiple customers simultaneously

Answer

Multi-tenancy means one software instance and infrastructure set is shared across many customers, with data isolation between them.

Question 2

What is the primary purpose of a SaaS 'onboarding' process?

Accepted Answer

Help new users quickly realize the product's core value

Answer

Onboarding guides new users to their first 'aha moment,' reducing time-to-value and improving long-term retention.

Question 3

Which metric tells a SaaS company how long it takes to recoup the cost of acquiring a customer?

Accepted Answer

CAC Payback Period

Answer

The CAC Payback Period measures how many months of subscription revenue are needed to recover the cost spent acquiring a customer.

Question 4

What does 'ACV' stand for in SaaS sales?

Accepted Answer

Annual Contract Value

Answer

Annual Contract Value (ACV) represents the average annualized revenue generated per customer contract.

Question 5

In SaaS, what is a 'land and expand' strategy?

Accepted Answer

Start with a small sale then grow the account through upsells

Answer

Land and expand means selling a smaller initial deal to get a foot in the door, then growing revenue by expanding usage or seats within the account.

SaaS Practice Test