SPC Sales Performance and Metrics 2

Question 1

What does 'sales cycle length' measure?

Accepted Answer

The average time from initial contact to deal close for a specific product, segment, or rep

Answer

Sales cycle length indicates how long it typically takes to convert a prospect, enabling more accurate forecasting and identifying opportunities to accelerate the process.

Question 2

What is 'sales velocity'?

Accepted Answer

A metric combining deal count, average deal value, win rate, and sales cycle length to measure how quickly revenue flows through the pipeline

Answer

Sales velocity = (Number of opportunities × Average deal value × Win rate) ÷ Sales cycle length, giving a single number that represents the health of the pipeline.

Question 3

A salesperson's pipeline shows many opportunities but few closings. What metric should be examined first?

Accepted Answer

Conversion rates at each pipeline stage to identify where deals are stalling

Answer

Stage-by-stage conversion rates reveal the specific point in the process where deals are lost, allowing targeted coaching and corrective action.

Question 4

What does 'quota attainment rate' across a sales team reveal?

Accepted Answer

The percentage of reps who achieved their individual quota, which reflects both individual performance and the achievability of targets

Answer

If fewer than 50-60% of reps hit quota, it may indicate unrealistic targets, insufficient training, or systemic process issues rather than only individual failure.

Question 5

What is 'churn rate' and why does it matter for sales performance?

Accepted Answer

The percentage of customers who stop buying or cancel over a period, which offsets new customer acquisition

Answer

High churn erodes the gains from new sales, meaning the team may be running hard just to stay in place — reducing churn is as valuable as adding new revenue.

SPC - Sales Professional Certificate Practice Test

SPC - Sales Professional Certificate Practice Test

SPC Sales Performance and Metrics 2