Customer Retention & Loyalty Programs Flashcards

An ecommerce brand wants to re-engage lapsed customers who haven't purchased in 6 months. Which campaign type is MOST appropriate?

Answer: Win-back campaign with a personalized incentive

Win-back campaigns specifically target lapsed customers with personalized messaging and incentives designed to reignite purchase intent.

Which loyalty program structure rewards customers for non-purchase actions like reviews, social shares, and referrals?

Answer: Engagement-based rewards program

Engagement-based programs reward a variety of brand interactions beyond purchases, deepening customer involvement and advocacy.

What does 'churn rate' measure in ecommerce?

Answer: The percentage of customers who stop purchasing within a given time period

Churn rate quantifies customer attrition, helping businesses understand how quickly they are losing their customer base.

A fashion retailer sends birthday discount emails to loyalty members. This is an example of which retention strategy?

Answer: Lifecycle marketing

Lifecycle marketing delivers relevant communications triggered by specific moments in the customer's personal timeline or purchase journey.

Which of the following BEST describes a 'coalition loyalty program'?

Answer: Multiple brands partnering to offer a shared loyalty currency redeemable across all partners

Coalition programs pool multiple brands' loyalty offerings, giving customers more redemption options and incentivizing cross-brand purchases.

What is 'zero-party data' and why is it valuable for personalized loyalty programs?

Answer: Data customers intentionally and proactively share with a brand, such as preferences and interests

Zero-party data is highly accurate and consent-based, enabling highly personalized loyalty experiences without privacy compliance risks.

A loyalty program shows high enrollment but low redemption rates. What does this most likely indicate?

Answer: The rewards are not perceived as valuable enough to motivate redemption behavior

Low redemption signals a disconnect between what the program offers and what customers actually want, suggesting a need to recalibrate rewards.