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IIBA CBDA Exam - Topic 3 Question 49 Discussion

A large telecommunications company wants to increase their Average Revenue Per User per month by 5%, by end of year, to increase revenue in a highly competitive market. From a SMART target perspective, what is missing?
D) S - There is no mention of which product group/line the target pertains to
A) T - The increase should be seen sooner
B) A - It is too easy of a target to attain
C) R - Since competition is high, focus should be on increasing customer base and not on ARPU

IIBA CBDA Exam - Topic 3 Question 49 Discussion

Actual exam question for IIBA's CBDA exam
Question #: 49
Topic #: 3
[All CBDA Questions]

A large telecommunications company wants to increase their Average Revenue Per User per month by 5%, by end of year, to increase revenue in a highly competitive market. From a SMART target perspective, what is missing?

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Suggested Answer: D

A SMART target is one that is specific, measurable, achievable, relevant, and time-bound1. The target of increasing the Average Revenue Per User (ARPU) per month by 5%, by end of year, to increase revenue in a highly competitive market is missing the specificity criterion, as it does not mention which product group or line the target applies to. The target should be more specific and clear about the scope and context of the desired outcome, such as which segment, region, or service the target relates to23. Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 192: SMART Goals: How to Make Your Goals Achievable, MindTools, 2021, 13: How to Set SMART Marketing Goals, CoSchedule, 2021, 2.


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Justine
1 month ago
I practiced a question similar to this, and I think the 'A' could be relevant here. If it’s too easy, it might not motivate the team enough.
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Roselle
2 months ago
I’m not entirely sure, but I think the 'R' could be a concern too. If the market is so competitive, maybe focusing on ARPU isn't realistic?
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Wilda
2 months ago
I remember discussing how the 'S' in SMART stands for Specific, so I think the target needs to specify which product line it relates to.
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