CCSP CCSP Customer Loyalty & Retention 1

Question 1

Which metric directly measures a customer's likelihood to recommend a company to others?

Accepted Answer

Net Promoter Score (NPS)

Answer

Net Promoter Score (NPS) asks customers how likely they are to recommend a company on a 0–10 scale, making it the primary loyalty indicator.

Question 2

A customer who purchases repeatedly, refers others, and resists competitor offers is best described as which type of customer?

Accepted Answer

Loyal customer

Answer

A loyal customer goes beyond satisfaction by exhibiting repeat purchases, referrals, and resistance to switching—indicating deep brand commitment.

Question 3

What is the primary purpose of a customer loyalty program in a service organization?

Accepted Answer

Incentivize repeat business and deepen emotional brand connection

Answer

Loyalty programs reward repeat purchasing behavior and foster emotional attachment, increasing customer lifetime value and reducing churn.

Question 4

Which strategy is MOST effective for re-engaging a lapsed customer who has not interacted with the company in six months?

Accepted Answer

Sending a win-back offer with a personalized incentive

Answer

A personalized win-back offer acknowledges the lapse and provides a compelling reason to return, which is the most effective re-engagement tactic.

Question 5

Customer churn rate is calculated as which of the following?

Accepted Answer

(Customers lost ÷ Customers at start of period) × 100

Answer

Churn rate divides the number of customers lost during a period by the number at the start of that period, expressed as a percentage.

CCSP - Certified Customer Service Professional Practice Test