CBO CBO Customer Relations & Service Excellence 1 — Questions and Answers
Question 1: What is a Net Promoter Score (NPS) used to measure?
- Employee productivity
- Customer loyalty and likelihood to recommend a company (Correct answer)
- Product defect rates
- Revenue per customer
Correct answer: Customer loyalty and likelihood to recommend a company
NPS measures customer loyalty by asking how likely customers are to recommend the company to others on a 0–10 scale.
Question 2: In customer service, what does 'first call resolution' (FCR) measure?
- Average handle time for customer calls
- The percentage of customer issues resolved on the first contact without follow-up (Correct answer)
- Number of calls received per day
- Customer satisfaction after a purchase
Correct answer: The percentage of customer issues resolved on the first contact without follow-up
FCR measures the percentage of customer inquiries or issues fully resolved during the initial contact, without requiring callbacks or escalations.
Question 3: What is 'customer lifetime value' (CLV)?
- The cost to acquire a single customer
- The total revenue a business can expect from a customer throughout the entire relationship (Correct answer)
- The number of purchases a customer makes in a year
- The profit margin on a single transaction
Correct answer: The total revenue a business can expect from a customer throughout the entire relationship
CLV represents the total net revenue a business anticipates earning from a customer over the entire duration of the relationship.
Question 4: Which approach to handling customer complaints is recommended under best practices?
- Deny responsibility and redirect to policies
- Acknowledge, apologize, investigate, and resolve promptly (Correct answer)
- Transfer the customer to as many departments as possible
- Offer a discount immediately without investigating
Correct answer: Acknowledge, apologize, investigate, and resolve promptly
Best practice complaint handling involves acknowledging the issue, apologizing sincerely, investigating the cause, and resolving it promptly to restore customer confidence.
Question 5: What does 'omnichannel' customer service mean?
- Providing service only through social media
- Offering a seamless, integrated customer experience across all communication channels (Correct answer)
- Limiting service to phone and email
- Using automation to replace all human agents
Correct answer: Offering a seamless, integrated customer experience across all communication channels
Omnichannel service integrates all customer touchpoints—phone, email, chat, social media—so customers receive a consistent, seamless experience regardless of channel.
Question 6: What is the 'service recovery paradox'?
- Customers who complain are always wrong
- A customer who experiences a problem that is resolved excellently may become more loyal than one who had no problem at all (Correct answer)
- Poor service always leads to customer defection
- Customers prefer automated service to human interaction
Correct answer: A customer who experiences a problem that is resolved excellently may become more loyal than one who had no problem at all
The service recovery paradox suggests that customers who experience a problem and then receive outstanding recovery may end up more satisfied and loyal than customers who never had a problem.
CBO CBO Customer Relations & Service Excellence 1
What is a Net Promoter Score (NPS) used to measure?