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Test Essential Key Performance Indicators (KPIs)
Agenda
QUESTION 1: What characterizes a vanity metric according to the text?
It is a KPI that predicts future results
Always used to make strategic decisions
Directly measure net profitability
Impresses in volume but does not reflect engagement or sales
QUESTION 2: What is an example of an actionable metric mentioned above?
Total number of followers in social networks
Conversion rate
Number of visits accumulated historically
Total page views per session
3rd QUESTION: What does the CAC calculate?
Total revenue generated by a customer
Net margin per product
Money invested to win a new customer
Average order value
QUESTION 4: According to the golden rule, how should LTV be related to CAC?
To be equal to ensure balance
To be slightly lower to scale quickly
To rely only on bounce rate
Be significantly larger than the CAC
QUESTION 5: What happens if it costs more to acquire a customer than he will spend?
Business model is unfeasible
Conversion rate automatically improves
LTV increases due to network effect
Metrics become a leading indicator
QUESTION 6: What actions does the text suggest to optimize the LTV/CAC ratio?
Increasing ad spend without segmentation
Reduce acquisition costs or increase value through retention and cross-selling
Focusing on historical quarterly revenues
Increasing the number of visits without looking at bounce rate
7th QUESTION: What are leading indicators according to the text?
Data confirming past results such as total revenue
Metrics that measure only quarterly profits
Metrics that predict future results such as engagement or qualified leads
Variables that are only analyzed at the end of the fiscal year
8th QUESTION: Why is it not enough to focus on lagging indicators?
Because they prevent calculating the CAC correctly
Because they are not useful for measuring engagement in an app
Because they replace vanity metrics with KPIs
Because they do not allow to proactively manage performance to improve growth
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