Which of the following is an example of expansion revenue?

A new customer signs a contract for $10,000 per year.

An existing customer upgrades from a basic plan to a premium plan.

A customer renews their contract at the same price.

A customer pays an invoice for the current month's subscription.

A Cisco partner has a starting recurring revenue of $8M. During the year, they lose $1M to churn and gain $1.5M from expansion. What is the NRR, and what does it indicate about the partner's financial health?

NRR is 93.75%, indicating net contraction from the existing customer base.

NRR is 118.75%, indicating strong growth from the existing customer base.

NRR is 100%, indicating the existing customer base is flat.

NRR is 106.25%, indicating net growth from the existing customer base.

A Cisco partner has two customers at risk of churn. Customer A has a $500K annual contract and a 20% gross margin. Customer B has a $300K annual contract and a 50% gross margin. The partner has limited retention resources and can save only one customer. Which customer should the partner prioritize to maximize gross profit retention?

Customer B, because it has a higher gross margin and thus a larger profit impact.

Both equally, because the total revenue at risk is $800K.

Customer A, because higher revenue is always more important than margin.

Customer A, because it has a higher contract value.

Which financial metric is most directly reduced when a customer churns?

Customer acquisition cost (CAC)

CiscoRenewals Manager

Domain 1Objective 3

1.3 Explain the Financial Implications of These Metrics: 700-805 Practice Questions (Page 1)

Part of the Customer Experience domain, which accounts for 10% of the 700-805 exam. Cisco does not publish an official question count, but from its 90-minute exam (~35–60 total, ~4–6 in this domain), expect 1–1 from this objective — we provide 16 practice questions to prepare you well beyond it. (estimate)

16questions here

4free pages

3concepts

10%of the exam

Questions 1–5

1foundation · easy
Which of the following is an example of expansion revenue?
Select an answer first
2application · medium
A Cisco partner has a starting recurring revenue of $8M. During the year, they lose $1M to churn and gain $1.5M from expansion. What is the NRR, and what does it indicate about the partner's financial health?
Select an answer first
3application · medium
A Cisco partner's managed services division starts the year with $10M in recurring revenue. During the year, they lose $1.5M to churn but gain $2M from upsells and cross-sells to existing customers. What is the Net Revenue Retention (NRR) for the year?
Select an answer first
4expert · hard
A Cisco partner has two customers at risk of churn. Customer A has a $500K annual contract and a 20% gross margin. Customer B has a $300K annual contract and a 50% gross margin. The partner has limited retention resources and can save only one customer. Which customer should the partner prioritize to maximize gross profit retention?
Select an answer first
5foundation · easy
Which financial metric is most directly reduced when a customer churns?
Select an answer first

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1.3 Explain the Financial Implications of These Metrics: 700-805 Practice Questions (Page 1)

Questions 1–5

Which of the following is an example of expansion revenue?

A Cisco partner has a starting recurring revenue of $8M. During the year, they lose $1M to churn and gain $1.5M from expansion. What is the NRR, and what does it indicate about the partner's financial health?

A Cisco partner's managed services division starts the year with $10M in recurring revenue. During the year, they lose $1.5M to churn but gain $2M from upsells and cross-sells to existing customers. What is the Net Revenue Retention (NRR) for the year?

Which financial metric is most directly reduced when a customer churns?

Keep studying — Customer Experience