CPM CRM & Customer Lifecycle 2 — Questions and Answers
Question 1: A company notices that customers who purchase within 30 days of signing up have a 70% higher lifetime value. Which CRM strategy best capitalizes on this insight?
- Increase email frequency for all customers
- Trigger an onboarding incentive campaign targeting new sign-ups within the first 30 days (Correct answer)
- Offer loyalty points after the first year of membership
- Focus retention efforts exclusively on high-spend segments
Correct answer: Trigger an onboarding incentive campaign targeting new sign-ups within the first 30 days
Targeting new sign-ups with an onboarding incentive within 30 days directly leverages the finding that early purchasers have significantly higher LTV.
Question 2: In the context of the customer lifecycle, 'churn' most specifically refers to:
- A decline in average order value among active customers
- The rate at which customers stop doing business with a company (Correct answer)
- Seasonal fluctuations in purchase frequency
- The process of upselling existing customers to premium tiers
Correct answer: The rate at which customers stop doing business with a company
Churn is defined as the rate at which customers disengage or stop purchasing from a business over a given period.
Question 3: Which metric is MOST useful for measuring the effectiveness of a win-back campaign targeting lapsed customers?
- Net Promoter Score (NPS)
- Reactivation rate (Correct answer)
- Cost per acquisition (CPA)
- Share of wallet
Correct answer: Reactivation rate
Reactivation rate measures the percentage of lapsed customers who return and make a purchase, directly reflecting win-back campaign success.
Question 4: A B2B company's CRM shows that 60% of deals stall after the demo stage. The BEST CRM-driven response is to:
- Eliminate the demo stage from the sales funnel
- Create an automated follow-up sequence with tailored case studies triggered after demo completion (Correct answer)
- Increase the sales team headcount immediately
- Shorten the demo to reduce prospect commitment required
Correct answer: Create an automated follow-up sequence with tailored case studies triggered after demo completion
Automated post-demo follow-ups with relevant social proof directly address the friction point where prospects disengage.
Question 5: Customer Effort Score (CES) is MOST closely associated with which stage of the customer lifecycle?
- Acquisition
- Awareness
- Retention and service interactions (Correct answer)
- Referral and advocacy
Correct answer: Retention and service interactions
CES measures how easy it is for customers to resolve issues or complete interactions, making it most relevant during retention and service touchpoints.
Question 6: Which CRM segmentation approach groups customers based on their position in the buying journey rather than demographics?
- Firmographic segmentation
- Psychographic segmentation
- Lifecycle stage segmentation (Correct answer)
- Geographic segmentation
Correct answer: Lifecycle stage segmentation
Lifecycle stage segmentation categorizes customers by where they are in their relationship with the brand, such as prospect, first-time buyer, or loyal customer.
Question 7: A SaaS company wants to predict which customers are likely to cancel before their renewal date. Which CRM capability is MOST relevant?
- Campaign management module
- Predictive churn scoring using behavioral data (Correct answer)
- Social media listening integration
- Invoice automation
Correct answer: Predictive churn scoring using behavioral data
Predictive churn scoring uses behavioral signals like login frequency and feature usage to identify at-risk customers before cancellation.
CPM CRM & Customer Lifecycle 2
A company notices that customers who purchase within 30 days of signing up have a 70% higher lifetime value.
Which CRM strategy best capitalizes on this insight?