CMD Customer Experience and Relationship Management 1

Question 1

Which metric best measures a customer's likelihood to recommend a brand to others?

Accepted Answer

Net Promoter Score (NPS)

Answer

NPS measures customer loyalty by asking how likely they are to recommend the brand on a 0–10 scale.

Question 2

A marketing director wants to reduce customer churn. Which strategy is most proactive?

Accepted Answer

Implementing predictive churn modeling to identify at-risk customers

Answer

Predictive churn modeling uses behavioral data to identify at-risk customers before they leave, enabling proactive retention efforts.

Question 3

Customer Lifetime Value (CLV) is primarily used to:

Accepted Answer

Determine how much to invest in acquiring and retaining a customer segment

Answer

CLV helps marketers decide how much budget to allocate to acquisition and retention by estimating the total revenue a customer will generate over their relationship with the brand.

Question 4

In a Customer Journey Map, which stage focuses on the customer's first awareness of a brand?

Accepted Answer

Awareness

Answer

The Awareness stage is where a prospect first discovers the brand, typically through advertising, word-of-mouth, or organic search.

Question 5

Which CRM strategy segment targets customers who have purchased frequently and recently with high spend?

Accepted Answer

RFM segmentation — High segment

Answer

RFM (Recency, Frequency, Monetary) segmentation identifies high-value customers based on their most recent purchase, how often they buy, and how much they spend.

CMD - Certified Marketing Director Practice Test

CMD - Certified Marketing Director Practice Test

CMD Customer Experience and Relationship Management 1