CCRS Customer Relationship Management & Engagement 2 — Questions and Answers
Question 1: Which CRM metric best measures the depth of a customer's emotional connection to a brand?
- Net Promoter Score
- Customer Effort Score
- Customer Engagement Score (Correct answer)
- First Contact Resolution Rate
Correct answer: Customer Engagement Score
Customer Engagement Score (CES) aggregates behavioral signals like frequency, recency, and interaction breadth to quantify emotional and behavioral attachment.
Question 2: A customer who purchases infrequently but spends large amounts per transaction is best described under RFM analysis as:
- High Recency, High Frequency
- Low Recency, High Monetary
- High Frequency, Low Monetary
- Low Frequency, High Monetary (Correct answer)
Correct answer: Low Frequency, High Monetary
RFM (Recency, Frequency, Monetary) analysis classifies this customer as Low Frequency but High Monetary due to infrequent but large purchases.
Question 3: What is the primary purpose of a customer journey map in a retention strategy?
- To assign customers to sales reps
- To visualize touchpoints and identify friction that causes churn (Correct answer)
- To calculate customer lifetime value
- To segment customers by demographics
Correct answer: To visualize touchpoints and identify friction that causes churn
Journey maps expose the full sequence of customer interactions so retention teams can pinpoint pain points that lead to disengagement or churn.
Question 4: Which engagement tactic is MOST effective for re-engaging dormant customers who haven't purchased in 90+ days?
- Upselling premium features
- Sending a win-back email with a personalized incentive (Correct answer)
- Increasing ad frequency on social media
- Assigning them to a new account manager
Correct answer: Sending a win-back email with a personalized incentive
Personalized win-back emails with targeted incentives address the specific reason for disengagement and have proven higher reactivation rates than broad ad campaigns.
Question 5: In CRM systems, what does 'single customer view' (SCV) mean?
- A dashboard visible to only one user
- A unified record consolidating all customer data from every channel (Correct answer)
- A report showing one customer's purchase history
- A view restricted to the customer service team
Correct answer: A unified record consolidating all customer data from every channel
SCV aggregates data from all channels and systems into one comprehensive, deduplicated customer profile to enable consistent, informed engagement.
Question 6: A company wants to predict which customers are likely to churn in the next 30 days. Which approach is MOST appropriate?
- Post-purchase surveys
- Predictive churn modeling using behavioral data (Correct answer)
- Monthly NPS campaigns
- Quarterly account reviews
Correct answer: Predictive churn modeling using behavioral data
Predictive churn models use historical behavioral data and machine learning to identify at-risk customers before they leave, enabling proactive intervention.
Question 7: Which CRM principle states that retaining an existing customer is generally less costly than acquiring a new one?
- The Pareto Principle
- The Cost of Acquisition Paradox
- The Retention Economics Principle (Correct answer)
- The Loyalty Leverage Effect
Correct answer: The Retention Economics Principle
The Retention Economics Principle holds that acquiring a new customer can cost five times more than retaining an existing one, making retention ROI-superior.
Which CRM metric best measures the depth of a customer's emotional connection to a brand?