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Guide Questions And Answers Latest Update
5 Types of essential nonfinancial metrics - - - correct answer ✅1. Brand Awareness, 2. Test Drive, 3. Churn, 4. Customer Satisfaction Rate (CSAT), 5. Take Rate Brand Awareness - - - correct answer ✅ability to recall product or service -Measured by asking what is the first company name you think of? -measured by what other company have you head of? Churn - - - correct answer ✅Percentage of existing customers who chose not to do business with you. -often calculated annually
- churn 20%= when 80 out of 100 stop coming. Customer Satisfaction (CSAT) Rate - - - correct answer ✅Leading indicator of future sales, linked to future intent
- " How likely are you to recommend this product or service to a friend or collogue.
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Take Rate - - - correct answer ✅Internal effectiveness of a campaign linked to cost. -Take rate = CTR x TCR Take Rate = Click Through Rate x Transaction Conversation Rate Descriptive - - - correct answer ✅most of statistical information in newspapers, reports, publication with data summaries, tubular graphical or numerical. What happened in the past can be graphs, charts, reports and dashboards Predicative - - - correct answer ✅Takes historical data and feeds it into a machine to learn model that considers key trends and patterns and makes predictions as to what will happen next. Big picture views of your leads and how likely those leads are moving down the funnel to be converted into customers. What presumably is going to happen. Prescriptive - - - correct answer ✅Now that you know what should likely happen
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c. invest if positive PV=$100k/(1+R)+ $100k/(=r)^2 + $100k/(1+R)^ PV=NVP(discount rate, range of values) + Investment =NVP(discount rate/ 12{monthly}, range of values) = initial investment Internal Rate of Return (IRR) - - - correct answer ✅-Rate that money is compounding internally to the campaign -Technically calculated by setting the NPV to zero and solving of r=IRR, comparing IRR to r (hurdle rat). If IRR is greater than r, accept it, if it is less than r, reject it. =IRR 25% = internal rate of return =IRR (values; range of values) 25% -only works with regular intervals Payback - - - correct answer ✅The time for the cost benefit out to equal the cost -usually not discounted
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add line and one below, until positive, then divide remainder by totally amount of time. Return on Marketing Investment (ROMI) - - - correct answer ✅ROMI (Main formula) = ((income from marketing - cost of goods - marketing expenditures)/marketing expenditures)* ROMI ((Revenue - Investment) /investment) * Why is the standard definition of ROI not one of the essential marketing metric? - - - correct answer ✅1. Standard ROI calculations do not account for the time value of money. Future money is worth less
- The length of time is ambiguous
- 100% ROI can be achieved on a long enough timeline ROI = ((benefit - cost)/ cost)*100% Understand how to calculate CLTV or CTV - - - correct answer ✅CLTV = Contribution margin x retention rate %/ 1+Discount Rate(5) - Retention Rate (%) -cost of service over time
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-more important than CPM (cost per thousand impressions for word that leads to purchases natural/organic vs sponsored search.) only counting impressions -Clicks have a higher degree of lead quality Transaction Conversion Rate (TCR) - - - correct answer ✅Number of actual transactions/number of delivered clicks. This information would be determined from the number of tickets booked on a website. =% of customers who purchase offer clicking through Return on Dollars Spent (ROA) - - - correct answer ✅=Net Revenue / cost =Net Revenue= Revenue - Cost -Measures the efficiency of generating net revenue from ad dollars spent when the end action is the purchase of a product or service -The equivalent or ROI for SEM (search engine marketing) Bounce Rate - - - correct answer ✅-Measures how good /relevant your website is
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-percentage of customers who leave your website after pending less than 5 seconds on your site.
- website churn rate .5 sec measurement Word of mouth (WOM) - - - correct answer ✅-Helps quantify the value of social media activities -relates to CSAT in digital channels
of direct clicks+ # of clicks from recommendations / # direct clicks
Web Analysis - - - correct answer ✅measures things a webmaster would care about, like page load times, page views per visit, and time on sites Marketing analytics - - - correct answer ✅measures business metrics like traffic, leads and sales and which events both on on and off your website influence whether leads become customers -details with the big data, includes data from your website and other sources such as social media, email, events and blogs
- mostly focused on people and is customer0centric giving more emphasis to the prospect, lead or customers.
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R^2=regression the percentage of the variation in the dependent variable explained by the least squares line is known as R^ What is the purpose of linear regression? - - - correct answer ✅Linear regression is common statistical data analysis technique. IT is used to determine the extent to which there is a linear relationship between a dependent variable and one or more independent variable. there are two types of linear regression. Simple and multiple linear regression. In simple linear regression a single independent variable is used to predict the value of a dependent variable in multiple linear regression two or more independent variables are used to predict the value of a dependent variable. The difference the two is the number of independent variables. in both cases there is only a single dependent variable. Linear regression displays the relationship between two variables of interest including -How price affects demand how advertising affects sales
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how shelf space devoted to a product predicts effects that products sales Variable you want to predict = dependent variable (y) Variable used for prediction = independent varoable (x) Central tendency - - - correct answer ✅middle value or a typical value of the data. measured mean, median, and mode mean - - - correct answer ✅most commonly used and average overall data numbers median - - - correct answer ✅sorting the data from highest to lowest then takin the data point in the middle of the sequence mode - - - correct answer ✅most frequent occurrence of data set - can be less
