CCRM Data Analytics 3

Question 1

Which technique is used to reduce the number of variables in a client dataset while retaining the most important information?

Accepted Answer

Principal Component Analysis (PCA)

Answer

PCA is a dimensionality reduction technique that transforms correlated variables into a smaller set of uncorrelated principal components.

Question 2

A CCRM professional wants to evaluate the effectiveness of a new onboarding program. Which analysis framework is most appropriate?

Accepted Answer

Funnel analysis comparing pre- and post-program conversion rates

Answer

Funnel analysis tracks clients through sequential stages, making it ideal for measuring onboarding program effectiveness at each step.

Question 3

In client data analytics, 'data wrangling' refers to:

Accepted Answer

The process of cleaning, transforming, and organizing raw data for analysis

Answer

Data wrangling encompasses the preprocessing steps needed to convert raw, messy data into a structured, analysis-ready format.

Question 4

A cohort analysis of clients acquired in Q1 shows lower 12-month retention than those acquired in Q2. What is the MOST actionable next step?

Accepted Answer

Investigate differences in acquisition channel, onboarding experience, and early engagement for each cohort

Answer

Diagnosing why cohorts differ requires examining the variables that distinguish them, such as channel, onboarding, and early behavior.

Question 5

Which key performance indicator (KPI) directly measures how willing existing clients are to recommend the firm to others?

Accepted Answer

Net Promoter Score (NPS)

Answer

NPS measures the likelihood that clients will recommend the firm, classifying them as Promoters, Passives, or Detractors.

(CCRM) Certified Client Relationship Manager Practice Test