Which of the following is an example of an effective KPI worth tracking to contribute to revenue?

• A. Cycle time
• B. Annual recurring revenue
• C. Social media followers
• D. Email open rate

Answer: (A)

The key idea is choosing a KPI that actively drives revenue by revealing how quickly you turn interest into paying customers. Cycle time measures the time from first contact to close, so when you shorten it, you move more deals through the funnel in the same window. That increases sales velocity, speeds up revenue recognition, and improves cash flow, making it a tangible driver you can optimize to grow revenue.

By contrast, annual recurring revenue shows how much revenue you’re already generating, which is useful but more of a result than a lever you can pull to affect current revenue. Social media followers and email open rate gauge engagement or audience size, but they don’t directly indicate how fast or reliably you’ll convert those touches into sales.