DA0-002 Visualization and Reporting Practice Question
A data analyst is designing a dashboard for a sales team. Which TWO of the following are key performance indicators (KPIs) rather than operational metrics?
⚠ Common exam trap
Many candidates confuse operational metrics (like average time to close a deal) with KPIs because they both appear in sales dashboards, but KPIs must directly measure strategic outcomes rather than process efficiency.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Customer retention rate
Customer retention rate (B) is a key performance indicator (KPI) because it measures the long-term health of customer relationships and directly reflects strategic business goals, such as loyalty and recurring revenue. It is a high-level metric that tracks performance against strategic objectives, unlike operational metrics which focus on day-to-day activities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Number of emails sent to prospects
Why it's wrong here
This is an operational activity metric.
- ✓
Customer retention rate
Why this is correct
Customer retention is a key strategic metric.
- ✓
Annual revenue growth rate
Why this is correct
This is a strategic indicator of company performance.
- ✗
Number of sales calls made per day
Why it's wrong here
This is an operational metric that measures activity.
- ✗
Average time to close a deal
Why it's wrong here
This is an operational efficiency metric.
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