CCRS Customer Relationship Management & Engagement 5 — Questions and Answers
Question 1: Which of the following best describes 'customer advocacy' as an outcome of effective CRM?
- Customers who have filed formal complaints
- Customers who actively recommend the brand to others without incentive (Correct answer)
- Customers enrolled in a referral rewards program
- Customers who have agreed to serve on an advisory board
Correct answer: Customers who actively recommend the brand to others without incentive
True customer advocates spontaneously promote the brand based on genuine satisfaction, representing the highest tier of customer loyalty and the most credible form of marketing.
Question 2: What is the risk of over-relying on discounts as a primary customer retention tactic?
- Customers become too satisfied and stop providing feedback
- It attracts price-sensitive customers and trains customers to wait for promotions (Correct answer)
- It increases operational costs for the support team
- It conflicts with GDPR data retention policies
Correct answer: It attracts price-sensitive customers and trains customers to wait for promotions
Chronic discounting devalues the product, erodes margins, and builds a customer base that is loyal to the price rather than the brand, making them vulnerable to any competitor offering a lower price.
Question 3: In CRM terminology, what is a 'touchpoint'?
- A physical location where customers can meet sales reps
- Any interaction between a customer and the company across the customer lifecycle (Correct answer)
- A field in the CRM database where contact info is stored
- A milestone in a customer's onboarding checklist
Correct answer: Any interaction between a customer and the company across the customer lifecycle
A touchpoint is any moment of contact — from an ad impression to a support call to a billing email — that shapes the customer's perception and experience of the brand.
Question 4: Which of the following scenarios represents 'relationship deepening' in CRM?
- A customer's contract auto-renewing with no interaction
- A customer adding product lines after a success manager identified a new use case for them (Correct answer)
- A customer escalating a complaint to management
- A customer requesting a lower price at renewal
Correct answer: A customer adding product lines after a success manager identified a new use case for them
Relationship deepening occurs when a proactive success conversation uncovers new value opportunities, expanding both product usage and the customer's attachment to the brand.
Question 5: What is 'churn reason coding' and why is it important?
- Encrypting customer data when an account closes
- Categorizing the stated reasons customers give for leaving to identify systemic retention issues (Correct answer)
- Assigning numerical IDs to churned accounts for billing purposes
- Coding customer feedback in a foreign language for international markets
Correct answer: Categorizing the stated reasons customers give for leaving to identify systemic retention issues
Churn reason coding systematically classifies exit feedback into categories (price, competitor, product gap, etc.), enabling the company to detect patterns and prioritize fixes.
Question 6: When building a CRM engagement cadence, what does 'cadence' refer to?
- The tone of voice used in customer communications
- The planned rhythm and frequency of outreach touchpoints over time (Correct answer)
- The sequence of product features introduced during onboarding
- The speed at which support tickets are resolved
Correct answer: The planned rhythm and frequency of outreach touchpoints over time
An engagement cadence defines when and how often the company contacts customers at each lifecycle stage, balancing relevance and frequency to avoid over-communication or neglect.
Question 7: A customer retention specialist notices that customers who complete a product certification have a 60% lower churn rate. The BEST next action is to:
- Make the certification mandatory for all new customers
- Design a campaign to drive more customers toward completing the certification (Correct answer)
- Report the finding and take no further action until next quarter
- Lower the price of the certification to increase uptake
Correct answer: Design a campaign to drive more customers toward completing the certification
Identifying a high-impact retention behavior (certification completion) should trigger a deliberate campaign to guide more customers to that milestone and replicate its retention effect.
CCRS Customer Relationship Management & Engagement 5
Which of the following best describes 'customer advocacy' as an outcome of effective CRM?