CCRS Data Analysis & Customer Feedback 3

Question 1

Which statistical method is best suited for identifying which customer attributes most strongly predict churn?

Accepted Answer

Logistic regression

Answer

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:

Accepted Answer

Investigate which cohorts or segments drove the decline

Answer

Diagnosing which segments experienced the drop enables targeted interventions rather than blanket responses.

Question 3

Customer Effort Score (CES) primarily measures:

Accepted Answer

How easy it was for a customer to resolve an issue

Answer

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:

Accepted Answer

How recently a customer made a purchase

Answer

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?

Accepted Answer

Sankey diagram or flow chart

Answer

Sankey diagrams visually represent the flow of customers between states like active, at-risk, churned, and recovered.

(CCRS) Certified Customer Retention Specialist Practice Test