Sales Assessment 3 — Questions and Answers
Question 1: Which of the following best defines 'customer lifetime value' (CLV) in a sales context?
- The total revenue from a customer's first purchase
- The net present value of all future revenue from a customer relationship (Correct answer)
- The gross margin on a single transaction
- The average order value multiplied by annual purchase frequency
Correct answer: The net present value of all future revenue from a customer relationship
CLV captures the long-term net revenue a customer generates, guiding how much to invest in acquisition and retention.
Question 2: A competitor has just slashed prices by 20%. What is the most strategic response for a value-based seller?
- Match the competitor's price immediately
- Highlight the total cost of ownership advantages of your solution (Correct answer)
- Offer a free trial period
- Increase marketing spend
Correct answer: Highlight the total cost of ownership advantages of your solution
Total cost of ownership (TCO) comparisons shift the conversation from sticker price to long-term financial impact.
Question 3: What does a 'champion' mean in enterprise sales?
- The highest-ranking executive who signs the contract
- An internal advocate who sells on your behalf inside the prospect's organization (Correct answer)
- The procurement officer who manages the RFP
- Your top-performing sales rep
Correct answer: An internal advocate who sells on your behalf inside the prospect's organization
A champion has influence, access to power, and personal stake in seeing your solution succeed inside the account.
Question 4: Which forecasting method assigns probability based on how long a deal has been in the pipeline?
- Stage-based forecasting
- Category-based forecasting
- Time-decay forecasting (Correct answer)
- Opportunity scoring
Correct answer: Time-decay forecasting
Time-decay models reduce win probability as a deal ages beyond the typical sales cycle, reflecting stagnation risk.
Question 5: A rep closes a $50,000 deal with a 25% gross margin. The company pays 8% commission on revenue. What is the rep's commission?
- $1,000
- $2,000
- $4,000 (Correct answer)
- $10,000
Correct answer: $4,000
8% of $50,000 revenue equals $4,000 commission; gross margin does not affect a revenue-based commission calculation.
Question 6: In consultative selling, which question type is most effective for uncovering a prospect's implicit needs?
- Closed yes/no questions
- Leading questions confirming your solution
- Problem questions that surface challenges (Correct answer)
- Feature-focused questions
Correct answer: Problem questions that surface challenges
Problem questions reveal pain points the prospect may not have articulated, turning implicit needs explicit.
Question 7: What is 'mutual action plan' (MAP) used for in complex sales?
- Tracking competitor activity
- Aligning buyer and seller on shared milestones toward a close date (Correct answer)
- Scheduling marketing campaigns
- Documenting product customization requests
Correct answer: Aligning buyer and seller on shared milestones toward a close date
A MAP creates joint accountability by listing each step, owner, and deadline both parties must complete to finalize the deal.
Sales Assessment 3
Which of the following best defines 'customer lifetime value' (CLV) in a sales context?