Business Metrics Quiz

What is the formula for Click Through Rate (CTR)?

• (Total customer revenue / Number of purchases in the cycle)

• (Clicks / Impressions) * 100

• (Total Sales Revenue / Cost of Goods Sold) * 100

• (Revenue - Variable Costs) / Total units sold

What does Customer Acquisition Cost (CAC) measure?

• Total revenue generated from a customer

• Average Sale Revenue multiplied by Profit Margin

• Total sales expenses divided by the number of leads

• Total marketing expenses divided by the number of customers acquired

Which metric is calculated as (Revenue - Cost of Goods Sold)?

• Operating Profit

• Contribution Margin

• Gross Profit

• Net Profit

What does the Churn Rate measure?

• The average time taken to close a deal

• The total number of bookings made

• The average revenue generated per customer

• The percentage of customers lost over a specific period

What is the formula for Life Time Value (LTV)?

• Total marketing expenses / Number of new leads

• Total Sales Revenue / Number of purchases

• Daily Active Users / Monthly Active Users

• Average Sale Revenue x Number of Repeat Sales x Expected Retention Time x Profit Margin

What does Gross Margin represent?

• Average Sale Revenue / Total Sales Revenue

• Total Operating Expenses / Total Revenue

• Revenue - Variable Costs

• (Total Sales Revenue – Cost of Goods Sold) / Total Sales Revenue

What is the formula for Cost Per Click (CPC)?

• Total revenue / Number of purchases

• Total marketing expenses / Number of customers acquired

• Cost of advertising on the source platform / Total number of leads

• Cost of advertising on the source platform / Number of clicks

What is the formula for Average Time to Close Deal?

• Total sales expenses / Number of new leads

• Total operating expenses / Total sales revenue

• Total revenue generated / Number of customers

• Total number of days for all sales combined / Number of deals