Sales Assessment 3

Question 1

Which of the following best defines 'customer lifetime value' (CLV) in a sales context?

Accepted Answer

The net present value of all future revenue from a customer relationship

Answer

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?

Accepted Answer

Highlight the total cost of ownership advantages of your solution

Answer

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?

Accepted Answer

An internal advocate who sells on your behalf inside the prospect's organization

Answer

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?

Accepted Answer

Time-decay forecasting

Answer

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?

Accepted Answer

$4,000

Answer

8% of $50,000 revenue equals $4,000 commission; gross margin does not affect a revenue-based commission calculation.

Sales Practice Test