CCRS Data Analysis & Customer Feedback 3 — Questions and Answers
Question 1: Which statistical method is best suited for identifying which customer attributes most strongly predict churn?
- Descriptive statistics
- Logistic regression (Correct answer)
- Simple moving average
- Frequency distribution
Correct answer: Logistic regression
Logistic regression models the probability of a binary outcome (churn vs. retain) based on multiple predictor variables.
Question 2: A company tracks its 90-day retention rate and finds it dropped from 80% to 70%. The most appropriate first response is to:
- Immediately launch a win-back campaign
- Investigate which cohorts or segments drove the decline (Correct answer)
- Increase the marketing budget
- Extend all customer contracts by default
Correct answer: Investigate which cohorts or segments drove the decline
Diagnosing which segments experienced the drop enables targeted interventions rather than blanket responses.
Question 3: Customer Effort Score (CES) primarily measures:
- How loyal a customer is to the brand
- How easy it was for a customer to resolve an issue (Correct answer)
- The total revenue generated per customer
- How frequently a customer contacts support
Correct answer: How easy it was for a customer to resolve an issue
CES captures the ease of the customer experience, with lower effort correlating strongly with higher retention.
Question 4: When segmenting feedback data, 'recency' in RFM analysis refers to:
- How recently a customer made a purchase (Correct answer)
- How much a customer spent last year
- How often a customer contacts support
- The age of the customer's account
Correct answer: How recently a customer made a purchase
Recency in RFM measures how recently the customer last transacted, which is a strong predictor of engagement.
Question 5: Which visualization is most effective for showing how customers move between retention states over time?
- Pie chart
- Sankey diagram or flow chart (Correct answer)
- Bar graph
- Scatter plot
Correct answer: Sankey diagram or flow chart
Sankey diagrams visually represent the flow of customers between states like active, at-risk, churned, and recovered.
Question 6: A feedback survey has a 5% response rate. The primary concern with this data is:
- The survey was too long
- Response bias may make results unrepresentative (Correct answer)
- The questions were too difficult
- Too many customers were surveyed
Correct answer: Response bias may make results unrepresentative
Low response rates risk non-response bias, where respondents systematically differ from non-respondents, skewing results.
Question 7: In A/B testing for retention emails, the 'control group' receives:
- The new experimental email variant
- The existing or no-change email (Correct answer)
- A discount offer
- A cancellation confirmation
Correct answer: The existing or no-change email
The control group receives the baseline treatment so results of the experimental variant can be measured against it.
CCRS Data Analysis & Customer Feedback 3
Which statistical method is best suited for identifying which customer attributes most strongly predict churn?