Profitable Revenue MCQ Quiz! Test

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| By Pippen229
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Pippen229
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Quizzes Created: 1 | Total Attempts: 102
Questions: 10 | Attempts: 103

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Profitable Revenue MCQ Quiz! Test - Quiz

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Questions and Answers
  • 1. 

    What are the reasons that we switched to revenue?

    • A.

      "At Bats: That create customer interactions that can lead to account analysis and other sales

    • B.

      The organization is ONLY focused on Revenue growth

    • C.

      More Consistent for STI and easier for employees to understand

    • D.

      Store were penalized to sell low-margin products, including at risk.

    Correct Answer(s)
    A. "At Bats: That create customer interactions that can lead to account analysis and other sales
    C. More Consistent for STI and easier for employees to understand
    D. Store were penalized to sell low-margin products, including at risk.
    Explanation
    The reasons that we switched to revenue are "At Bats: That create customer interactions that can lead to account analysis and other sales", "More Consistent for STI and easier for employees to understand", and "Store were penalized to sell low-margin products, including at risk." These reasons indicate that revenue is seen as a more effective measure of success because it captures customer interactions and potential sales, provides consistency and clarity for employees, and discourages the sale of low-margin products.

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  • 2. 

    What are some examples of pitfalls by compensating our employees for revenue only?

    • A.

      Team may be fore focused on STI than Profitability

    • B.

      Bad Behavior-Unethical Driving of "empty revenue"

    • C.

      Ethical and Margin related issues.

    • D.

      False sense of confidence based on only revenue performance.

    Correct Answer(s)
    A. Team may be fore focused on STI than Profitability
    B. Bad Behavior-Unethical Driving of "empty revenue"
    C. Ethical and Margin related issues.
    D. False sense of confidence based on only revenue performance.
    Explanation
    Compensating employees solely based on revenue can lead to several pitfalls. Firstly, the team may become overly focused on achieving short-term incentives (STI) rather than prioritizing long-term profitability. This can result in decisions that prioritize immediate revenue gains without considering the overall financial health of the company. Secondly, there is a risk of bad behavior, such as engaging in unethical practices to drive "empty revenue" that may not contribute to sustainable growth. Additionally, ethical and margin-related issues may arise when employees are solely motivated by revenue, potentially compromising the company's values and profitability. Lastly, relying solely on revenue performance for compensation can create a false sense of confidence, neglecting other important factors that contribute to overall success.

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  • 3. 

    What is the Top inspection point for a store to ensure you do not have employees Driving Empty Revenue?

    • A.

      Game Tape

    • B.

      IST employee Detail

    • C.

      My BBYM Scorecard.

    • D.

      The PMR

    Correct Answer
    B. IST employee Detail
    Explanation
    The correct answer is "IST employee Detail." This is because the IST employee detail provides information about the employees' activities and performance, allowing the store to identify any instances of employees driving empty revenue. By analyzing this data, the store can take necessary actions to ensure that employees are effectively contributing to revenue generation.

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  • 4. 

    What are some examples of the poor, possibly unethical decisions since we started focusing on revenue?

    • A.

      Knowingly selling to Resellers

    • B.

      OMS Ordering low or negative margin items.

    • C.

      Unnecessarily "Cutting price to close sales" out of fear of losing revenue

    • D.

      Bringing in Low-margin Products like Laptops and Gaming systems.

    Correct Answer(s)
    A. Knowingly selling to Resellers
    B. OMS Ordering low or negative margin items.
    C. Unnecessarily "Cutting price to close sales" out of fear of losing revenue
    D. Bringing in Low-margin Products like Laptops and Gaming systems.
    Explanation
    The examples provided in the answer highlight some poor and potentially unethical decisions made in relation to revenue. These decisions include knowingly selling to resellers, ordering low or negative margin items through the OMS, cutting prices unnecessarily to close sales out of fear of losing revenue, and bringing in low-margin products like laptops and gaming systems. These actions can be seen as unethical because they prioritize short-term revenue gains over long-term sustainability and customer satisfaction.

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  • 5. 

    How much of the Total Store Margin is from the product categories?

    • A.

      Postpaid-59% Accessories-20% Services-11% Prepaid-10%

    • B.

      Postpaid-63% Accessories-16% Services-12% Prepaid 9%

    • C.

      Postpaid-70% Accessories-15% Services-4% Prepaid 11%

    • D.

      Post Paid-55% Accessories-25% Services-10% Prepaid-10%

    Correct Answer
    B. Postpaid-63% Accessories-16% Services-12% Prepaid 9%
    Explanation
    The correct answer indicates that 63% of the Total Store Margin comes from the Postpaid product category, 16% comes from the Accessories category, 12% comes from the Services category, and 9% comes from the Prepaid category.

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  • 6. 

    Understanding that most of the direct Profit comes from postpaid pones, who should be our top priority in sales coaching?

    • A.

      Accy Attach

    • B.

      Omni Channel Usage

    • C.

      Account Analysis

    • D.

      Zact Mobile

    Correct Answer
    C. Account Analysis
    Explanation
    Account Analysis should be the top priority in sales coaching because it helps in understanding the profitability of different accounts. By analyzing the accounts, the company can identify the ones that generate the most profit and focus on strategies to retain and grow those accounts. This approach ensures that resources and efforts are directed towards maximizing profits from the most lucrative customer base, which in this case is postpaid phones.

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  • 7. 

    How do you inspect whether the store has bad erosion?

    • A.

      Using the PMR to see who is on the bottom ranked overall.

    • B.

      Using the Controllable Erosion Summary/Detail Report

    • C.

      Validating the explanations given for erosion on the detail report.

    • D.

      Using the Daily Activation Report

    Correct Answer(s)
    B. Using the Controllable Erosion Summary/Detail Report
    C. Validating the explanations given for erosion on the detail report.
    Explanation
    To inspect whether the store has bad erosion, one should use the Controllable Erosion Summary/Detail Report and validate the explanations given for erosion on the detail report. This report provides a summary and detailed information about erosion, allowing for a comprehensive analysis of the factors contributing to erosion in the store. By validating the explanations given for erosion, one can determine the root causes and take necessary actions to address the issue. The Daily Activation Report and PMR are not specifically designed for inspecting erosion in the store, making them less suitable options for this purpose.

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  • 8. 

    What are the key strategies to coach to ensure the store is driving profitable revenue?

    • A.

      Leverage IST by using the PAT Tool along with check in and out

    • B.

      Documented, constructive coaching and accountability with emphasis on Profitable sales.

    • C.

      Coach you teams to never sell negative margin product, no matter what

    • D.

      Effective account analysis coaching

    • E.

      Quality sales performance management that balances Revenue and Margin

    Correct Answer(s)
    A. Leverage IST by using the PAT Tool along with check in and out
    B. Documented, constructive coaching and accountability with emphasis on Profitable sales.
    D. Effective account analysis coaching
    E. Quality sales performance management that balances Revenue and Margin
    Explanation
    The key strategies to coach to ensure the store is driving profitable revenue include leveraging IST by using the PAT Tool along with check in and out, providing documented and constructive coaching with a focus on profitable sales, conducting effective account analysis coaching, and implementing quality sales performance management that balances revenue and margin. These strategies aim to optimize sales practices, identify areas of improvement, and maintain a balance between generating revenue and maximizing profitability.

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  • 9. 

    What are the top behavior teams should focus on to drive revenue and margin?

    • A.

      Unlocked phones

    • B.

      Margin erosion

    • C.

      Home Connections

    • D.

      Account Analysis/Multi-line

    • E.

      Branded payments

    Correct Answer
    D. Account Analysis/Multi-line
    Explanation
    Teams should focus on Account Analysis/Multi-line to drive revenue and margin. This involves analyzing customer accounts and identifying opportunities for upselling or cross-selling multiple lines of products or services. By understanding customer needs and preferences, teams can tailor their offerings and increase sales. Additionally, selling multiple lines can help increase margins as it allows for bundling and offering higher-value packages. Therefore, prioritizing Account Analysis/Multi-line can lead to increased revenue and improved profit margins for the business.

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  • 10. 

    An average store needs to do about $_______ million in revenue at the ____ % direct profit to deliver profitability. 

    • A.

      5, 20

    • B.

      10, 20

    • C.

      1.5, 30

    • D.

      0.5, 50

    Correct Answer
    C. 1.5, 30
    Explanation
    An average store needs to do about $1.5 million in revenue at the 30% direct profit to deliver profitability. This means that for every $1.5 million in revenue, the store will have a direct profit of 30%, resulting in a profitable operation.

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  • Current Version
  • Mar 16, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 17, 2016
    Quiz Created by
    Pippen229
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