CCRM Customer Retention 2 — Questions and Answers
Question 1: A client has not engaged with your firm in 90 days. Which proactive retention tactic is most appropriate?
- Send a generic newsletter
- Schedule a personalized re-engagement call referencing their account history (Correct answer)
- Offer an unsolicited discount to all inactive clients
- Wait for the client to reach out first
Correct answer: Schedule a personalized re-engagement call referencing their account history
Personalized outreach referencing specific account history demonstrates attentiveness and increases the likelihood of re-engagement.
Question 2: What does the concept of 'customer lifetime value' (CLV) most directly inform in a retention strategy?
- How much to spend on acquiring new clients
- How much investment is justified to retain an existing client (Correct answer)
- The total number of transactions a client completes
- The client's credit risk profile
Correct answer: How much investment is justified to retain an existing client
CLV quantifies the long-term revenue a client represents, helping managers determine appropriate retention investment thresholds.
Question 3: Which metric best measures whether clients are expanding their use of your services over time?
- Net Promoter Score (NPS)
- Churn rate
- Net Revenue Retention (NRR) (Correct answer)
- Customer Acquisition Cost (CAC)
Correct answer: Net Revenue Retention (NRR)
NRR captures both retained and expanded revenue from existing clients, making it the strongest indicator of account growth.
Question 4: A client expresses frustration about a billing error. What is the best first step a relationship manager should take?
- Escalate immediately to the finance department without responding
- Acknowledge the error, apologize sincerely, and commit to a resolution timeline (Correct answer)
- Offer a future discount before investigating the issue
- Ask the client to submit a formal written complaint
Correct answer: Acknowledge the error, apologize sincerely, and commit to a resolution timeline
Acknowledging the issue and setting clear expectations rebuilds trust quickly and prevents further escalation.
Question 5: Which of the following is a leading indicator that a client may be at risk of churning?
- An increase in support ticket volume (Correct answer)
- A recent contract renewal
- An upsell acceptance in the last quarter
- Receipt of a client satisfaction survey
Correct answer: An increase in support ticket volume
Rising support ticket volume often signals unresolved frustration that can precede a client's decision to leave.
Question 6: What is the primary purpose of a client health score?
- To rank clients by revenue size
- To aggregate multiple engagement signals into a single risk or opportunity indicator (Correct answer)
- To track the number of contacts at a client organization
- To measure the speed of service delivery
Correct answer: To aggregate multiple engagement signals into a single risk or opportunity indicator
A health score synthesizes usage, engagement, support history, and sentiment data to flag at-risk or high-growth accounts.
Question 7: When should a formal executive business review (EBR) typically be conducted with a key client?
- Only when problems arise
- Quarterly or semi-annually to align on goals, outcomes, and future opportunities (Correct answer)
- At contract renewal only
- When the client requests it
Correct answer: Quarterly or semi-annually to align on goals, outcomes, and future opportunities
Scheduled EBRs create structured touchpoints to demonstrate value and deepen strategic alignment before issues emerge.
CCRM Customer Retention 2
A client has not engaged with your firm in 90 days.
Which proactive retention tactic is most appropriate?