Marketing 1

Question 1

Average Transaction Value (ATV)

Answer 1

The average dollar amount that a customer spends with you.

Question 2

Customer Lifetime Value (CLV)

Answer 2

The net profit contribution of the customer to the firm over time.

Question 3

Average Purchase Cycle (APC)

Answer 3

Timeframe // Frequency with which an inventory item is ordered

Question 4

Calculate CLV :

Answer 4

(ATV x APC) x Lifespan = CLV

Question 5

Customer Acquisition Cost (CAC)

Answer 5

The cost associated in convincing a customer to buy a product/ service.

Question 6

Ideal Customer Acquisition Cost (CAC) -to -Customer Lifetime Value (CLV) ratio:

Answer 6

Lower!!

3:1

Question 7

Conversion Rate Optimization (CRO)

Answer 7

The systematic process of increasing the percentage of visitors who take a desired action

Question 8

Key Performance Indicators (KPI)

Answer 8

A measurable value that demonstrates how effectively a company is achieving key business objectives.

Question 9

Measuring MROI:

Single attribution

Answer 9

All value is assigned to the first and last touchpoints of a sale or deal.

Question 10

Measuring MROI:

Multi-touch attribution

Answer 10

Various forces contribute to a sale or deal

Question 11

Measuring MROI:

Test Groups

Answer 11

Measure effectiveness of a campaign by testing it against another group

Question 12

Measuring MROI:

Marketing Mix Modeling (MMM)

Answer 12

Big picture of marketing efforts

Question 13

Vanity Metrics

Answer 13

No value

Social shares, pageviews

Question 14

Measuring Traffic-to-lead Conversions

Answer 14

Measure:

1. ) quantity of traffic
2. ) No. of conversions
3. ) Conversion rate (%)

Question 15

Sales Funnel

Answer 15

Awareness
Interest
Decision
Action