Certificate in Business Data Analytics (CBDA) — Question 4

A financial software company has growth and expansion as one of their top strategic priorities for the year. The senior executive team would like to assess their sales performance over the last 3 years to help set sales objectives. In discussion with the business analytics manager, for a comprehensive sales report, the sales lead recommends looking into the number of contracts signed over the past 3 years and the dollar value for the signed contracts.
Which other question is important to consider when evaluating sales performance?

Answer options

• A. What is the average time for conversion?
• B. What is the total cost incurred per year?
• C. What is the number of customers retained over the past 3 years?
• D. What is the time to market the software?

Correct answer: C

Explanation

Option C is the correct answer because customer retention is a crucial metric that reflects the effectiveness of the sales strategy over time. Options A and D focus on conversion and market timing, which are important but do not directly assess the retention aspect related to sales performance. Option B addresses costs, which is less relevant than understanding customer retention when evaluating overall sales effectiveness.