Revenue Metrics and Key Performance Indicators Questions
Comprehensive understanding of revenue oriented and financial metrics used to assess business health, growth efficiency, go to market performance, and operational effectiveness. Includes recurring revenue measures such as Monthly Recurring Revenue and Annual Recurring Revenue, revenue run rate, gross and net revenue retention, churn and retention metrics, Customer Acquisition Cost and Customer Lifetime Value, average deal size and win rate, pipeline coverage, conversion rates by stage, deal velocity, and sales cycle length. Also covers finance and cash metrics such as Days Sales Outstanding, collections, contribution margin, unit economics, revenue growth rates, sales efficiency ratios including the magic number, and other RevOps indicators. Candidates should be able to define each metric, explain why it matters, compute it reliably across time windows and cohorts, handle attribution and edge cases, translate definitions into queries and dashboards, and articulate interdependencies among metrics. Includes building KPI frameworks that align to commercial goals, distinguishing leading versus lagging indicators, prioritizing metrics by company stage and business model such as land and expand versus enterprise sales, using metrics for forecasting and prioritization, and communicating frameworks to leadership and go to market teams while balancing incentives to avoid gaming.
HardTechnical
0 practiced
You are building a churn prediction model to help customer success prioritize accounts. Describe feature engineering ideas using usage metrics, billing events, support tickets, and engagement; choose model families you would try; define evaluation metrics that reflect business value (e.g., precision@k, lift); and explain how you'd deploy predictions into a dashboard or playbook for CS reps.
HardTechnical
0 practiced
Construct a hierarchical time-series forecasting approach for ARR across product lines and regions. Explain when to use top-down vs bottom-up reconciliation, which forecasting model families to apply at different hierarchy levels (e.g., ARIMA for aggregate, ETS for seasonal products, ML for products with covariates), and how to present and quantify reconciliation error and forecast uncertainty in dashboards.
EasyTechnical
0 practiced
Describe three leading revenue indicators and three lagging revenue indicators you would track for an early-stage SaaS startup. For each indicator, explain why it is leading or lagging and how you would surface the leading indicators in a dashboard to help go-to-market teams take action.
EasyTechnical
0 practiced
Define Customer Acquisition Cost (CAC) and CAC payback period for a subscription company. Given total sales and marketing spend of $200,000 in Q1, 100 new customers acquired in Q1, and average new-customer MRR of $250, calculate CAC and the CAC payback in months. State assumptions about gross margin and monthly billing cadence and explain why CAC by channel matters.
EasyBehavioral
0 practiced
Tell me about a time when a stakeholder disagreed with a revenue metric definition (for example, differences between MRR and recognized revenue or differing treatments of discounts). Use the STAR method: describe the Situation, Task, Action you took to reconcile definitions or build alignment, and the Result including how you communicated the final definition and any changes to dashboards or processes.
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