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CRM & Customer Lifecycle Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 CRM & Customer Lifecycle flashcards as text

  1. The 'moments of truth' concept in CRM refers to:

    Answer: Key interactions that significantly shape a customer's perception of a brand

    Moments of truth are critical touchpoints—such as first purchase, complaint resolution, or product failure—that disproportionately influence customer perception.

  2. In RFM analysis, a customer scored high on Frequency but low on Monetary value is BEST described as:

    Answer: A frequent but low-spend customer who may respond to upsell or bundle offers

    Frequent low-spend customers are engaged but not maximizing value, making them prime candidates for upselling or bundling strategies.

  3. Which of the following BEST illustrates 'customer lifetime value optimization' in a CRM context?

    Answer: Developing personalized retention offers for customers showing early churn signals

    Proactively retaining at-risk customers extends their relationship duration, which is a primary driver of lifetime value.

  4. A retail brand tracks that customers who join its loyalty program spend 2.5x more annually. This finding is BEST used to:

    Answer: Prioritize loyalty program enrollment as a post-purchase CRM trigger

    Using post-purchase automation to enroll customers in the loyalty program capitalizes on the proven spend-lift the program delivers.

  5. The concept of 'share of wallet' in CRM refers to:

    Answer: The percentage of a customer's total category spending captured by your brand

    Share of wallet measures how much of a customer's spending within a product category goes to your company versus competitors.

  6. Which CRM strategy is MOST appropriate for customers in the 'advocacy' stage of the lifecycle?

    Answer: Referral programs and co-creation opportunities that leverage their enthusiasm

    Advocates are highly satisfied customers best engaged through referral incentives and co-creation, turning their loyalty into brand growth.

  7. A company's CRM data shows that customers who contact support more than 3 times in 90 days have a 45% higher churn rate. The BEST CRM response is to:

    Answer: Flag multi-contact customers for proactive outreach from a customer success team

    Proactive customer success outreach to struggling customers addresses root causes before dissatisfaction leads to churn.