CBO Customer Relations & Service Excellence Flashcards

What is a Net Promoter Score (NPS) used to measure?

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.

In customer service, what does 'first call resolution' (FCR) measure?

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.

What is 'customer lifetime value' (CLV)?

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.

Which approach to handling customer complaints is recommended under best practices?

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.

What does 'omnichannel' customer service mean?

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.

What is the 'service recovery paradox'?

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.