Managing Renewals Pricing Guidelines: Quiz!
(173).jpg "Managing Renewals Pricing Guidelines: Quiz! - Quiz")
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- 1.
If the overall P2.0 renewal rate increases by 1% how much does this add to the overall P2.0 committed book of business (ignoring new business):
- A.
$4,000
- B.
$22,000
- C.
$60,000
- D.
$220,000
Correct Answer
C. $60,000Explanation
If the overall P2.0 renewal rate increases by 1%, it means that 1% more customers are renewing their P2.0 subscriptions. This increase in renewal rate would add $60,000 to the overall P2.0 committed book of business, as each customer's subscription is worth $60,000.Rate this question:
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- 2.
Which of these best describe a Volume Purchase Plan?
- A.
A commitment to spend where usage is billed annually and any shortfall are billed at the end of the term. A flat discount is offered.
- B.
A commitment to spend where usage is billed monthly and any shortfall are billed at the end of the term. A flat discount is offered.
- C.
A commitment to spend where usage is billed monthly and any shortfall is billed at the end of the term. A stepped discount is offered based on actual usage.
- D.
A commitment to spend where usage is billed monthly and any shortfall is billed at the start of the term. A stepped discount is offered based on actual usage.
Correct Answer
B. A commitment to spend where usage is billed monthly and any shortfall are billed at the end of the term. A flat discount is offered.Explanation
A Volume Purchase Plan is a commitment to spend a certain amount of money on a product or service. In this plan, the usage is billed monthly, and if there is any shortfall in the committed spending, it is billed at the end of the term. Additionally, a flat discount is offered as an incentive for committing to this spending.Rate this question:
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- 3.
Which of these best describes the cap value:
- A.
The amount the client has committed to paying MRDC minus any appropriate discounts or free zone.
- B.
The amount the client has committed to paying MRDC plus any appropriate free zone.
- C.
The monthly amount the client has to pay MRDC.
- D.
None of the above.
Correct Answer
B. The amount the client has committed to paying MRDC plus any appropriate free zone.Explanation
The cap value refers to the amount that the client has committed to paying MRDC, which includes any appropriate free zone discounts. This means that the client is responsible for paying the agreed-upon amount to MRDC, but they may receive discounts or benefits in the form of a free zone. Therefore, the correct answer is "The amount the client has committed to paying MRDC plus any appropriate free zone."Rate this question:
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- 4.
Which contracts are listed in the contract utilization report?
- A.
Corporate Plans
- B.
Advantage Plans
- C.
Volume Purchase Plans
- D.
All of the above
Correct Answer
B. Advantage PlansExplanation
The contract utilization report lists Advantage Plans. This means that the report includes information about the utilization of contracts specifically related to Advantage Plans. It does not include information about Corporate Plans or Volume Purchase Plans.Rate this question:
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- 5.
Which of these best describes an Advantage Plan?
- A.
A commitment to purchase a predetermined amount paid annually upfront. A discount may be offered.
- B.
A commitment to purchase a predetermined amount paid annually upfront. A discount should always be offered.
- C.
A commitment to purchase a predetermined amount paid monthly. A discount should always be offered.
- D.
A commitment to purchase a predetermined amount paid monthly. A discount may be offered.
Correct Answer
A. A commitment to purchase a predetermined amount paid annually upfront. A discount may be offered.Explanation
An Advantage Plan is a commitment to purchase a predetermined amount paid annually upfront. It may also include a discount, although it is not always offered.Rate this question:
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- 6.
How often are usage statistics updated on Blackhawk/CAFfeine?
- A.
Hourly
- B.
Daily
- C.
Weekly
- D.
Monthly
Correct Answer
B. DailyExplanation
Usage statistics on Blackhawk/CAFfeine are updated on a daily basis. This means that the data regarding usage, such as the number of users, frequency of usage, and other relevant statistics, is refreshed and made available every day. This regular update frequency allows for timely and up-to-date information on the platform's usage patterns, helping in tracking and analyzing trends, making informed decisions, and optimizing the platform's performance.Rate this question:
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- 7.
What is the absolute latest you should start negotiations on a renewal?
- A.
9 months before renewal date
- B.
6 months before renewal date
- C.
3 months before renewal date
- D.
At the end of the current term
Correct Answer
C. 3 months before renewal dateExplanation
The absolute latest you should start negotiations on a renewal is 3 months before the renewal date. Starting negotiations at this point allows for enough time to discuss and finalize any terms or changes before the current term expires. Waiting until the end of the current term may not leave enough time for negotiations, potentially causing delays or a lapse in the renewal process.Rate this question:
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- 8.
Which of these best describes a Ladder Plan?
- A.
A commitment to spend where usage is billed annually and any shortfall is billed at the end of the term. A flat discount is offered.
- B.
A commitment to spend where usage is billed monthly and any shortfall is billed at the end of the term. A flat discount is offered.
- C.
A commitment to spend where usage is billed annually and any shortfall is billed at the end of the term. A stepped discount is offered based on actual usage.
- D.
A commitment to spend where usage is billed monthly and any shortfall is billed at the end of the term. A stepped discount is offered based on actual usage.
Correct Answer
D. A commitment to spend where usage is billed monthly and any shortfall is billed at the end of the term. A stepped discount is offered based on actual usage.Explanation
A Ladder Plan is a commitment to spend where usage is billed monthly and any shortfall is billed at the end of the term. It also offers a stepped discount based on actual usage. This means that customers are required to meet a certain spending commitment each month, and if they fall short, they will be billed for the difference at the end of the term. The discount offered will vary depending on the actual usage, with higher discounts given for higher usage levels.Rate this question:
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- 9.
How often is the contract utilization report produced?
- A.
Weekly on a Friday
- B.
Monthly on mid-month
- C.
Quarterly on the first month following the end of the previous quarter
- D.
On request
Correct Answer
B. Monthly on mid-monthExplanation
The contract utilization report is produced monthly on mid-month. This means that the report is generated once every month, specifically on the middle of the month. This regular frequency allows for consistent monitoring and analysis of contract utilization, providing timely insights into how effectively the contract is being utilized.Rate this question:
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- 10.
If a customer record in Blackhawk/CAFfeine shows a cap cost of $13,200 and a cap value of $15,000, how much can the customer spend on downloading content throughout their contract?
- A.
$13,200 at any point throughout the term
- B.
$1,100 per month
- C.
$15,000 at any point throughout the term
- D.
$1,250 per month
Correct Answer
C. $15,000 at any point throughout the termExplanation
The customer can spend up to $15,000 on downloading content throughout their contract. This is because the cap value represents the maximum amount that the customer can spend, and in this case, it is $15,000. The cap cost of $13,200 is irrelevant to the amount the customer can spend on downloading content.Rate this question:
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- 11.
Which of the following best describes when it may be appropriate to offer a rollover of unused cap money?
- A.
As a last resort but only if the client has underspent by at least 10%.
- B.
As a last resort but only if the client will commit to a new contract at least 75% of the previous contract commitment.
- C.
As a last resort but only if the client will commit to a new contract at least 100% of the previous contract commitment.
- D.
Never
Correct Answer
C. As a last resort but only if the client will commit to a new contract at least 100% of the previous contract commitment.Explanation
The correct answer is "As a last resort but only if the client will commit to a new contract at least 100% of the previous contract commitment." This means that offering a rollover of unused cap money should only be considered as a last option, and it should only be done if the client agrees to commit to a new contract that is equal to or greater than the previous contract commitment. This ensures that the client is fully committed to the business and will continue to invest in it.Rate this question:
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- 12.
Which of the following can jeopardize a renewal?
- A.
Lack of regular contact
- B.
Lack of usage
- C.
Lack of training
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
All of the options listed can jeopardize a renewal. Lack of regular contact with the customer can lead to a breakdown in communication and a decrease in customer satisfaction. Lack of usage indicates that the customer is not actively using the product or service, which may suggest that they are not finding value in it. Lack of training can result in the customer not fully understanding how to use the product or service effectively, leading to frustration and dissatisfaction. Therefore, all three factors can potentially put a renewal at risk.Rate this question:
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- 13.
Which of these best describes a $2,000 Corporate Plan?
- A.
Access to P2.0 at multiple sites for unlimited users on a "pay to Play" basis. Corporate fee of $2,000 is paid monthly.
- B.
Access to P2.0 at one physical site for unlimited users on a "Pay to Play" basis. Corporate fee is paid annually in advance.
- C.
Access to P2.0 at one physical site for up to 10 users on a "Pay to Play" basis. Corporate fee is paid annually in advance.
- D.
Access to P2.0 at one physical site for unlimited users on a "Pay to Play" basis. Corporate fee is paid monthly.
Correct Answer
C. Access to P2.0 at one pHysical site for up to 10 users on a "Pay to Play" basis. Corporate fee is paid annually in advance. -
- 14.
Where can you get a copy of the contract utilization report?
- A.
On the intranet
- B.
On the company shared drive
- C.
From your Sales Manager or TAC
- D.
All of the above
Correct Answer
C. From your Sales Manager or TACExplanation
The contract utilization report can be obtained from either the Sales Manager or TAC. This suggests that both of these sources have access to the report and can provide a copy of it. Additionally, the options "On the intranet" and "On the company shared drive" are not mentioned as sources for obtaining the report, so it can be inferred that they are not valid options. Therefore, the correct answer is "From your Sales Manager or TAC."Rate this question:
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- 15.
Which of the following are included in Blackhawk/CAFfeine?
- A.
Cap Cost
- B.
Cap Cost and Cap Value
- C.
Cap cost, Cap Value, and ZB Number
- D.
Cap cost, Cap Value, ZB Number, and Credits
Correct Answer
C. Cap cost, Cap Value, and ZB NumberExplanation
Blackhawk/CAFfeine includes Cap cost, Cap Value, and ZB Number. These are the specific components that are included in the Blackhawk/CAFfeine system.Rate this question:
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- 16.
When should you start working on a renewal?
- A.
As soon as there is a problem with the client.
- B.
As soon as the latest contract has been signed.
- C.
3 months before renewal date
- D.
6 months before renewal date
Correct Answer
B. As soon as the latest contract has been signed.Explanation
It is important to start working on a renewal as soon as the latest contract has been signed because this ensures that there is enough time to review the terms of the current contract, assess any changes or updates that may be needed, and negotiate with the client if necessary. By starting early, it allows for a smooth transition between contracts and reduces the risk of any potential problems or delays that may arise closer to the renewal date.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 23, 2009Quiz Created by
Bparker
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