CRA Customer Analytics & Consumer Behavior Flashcards

Which metric measures the percentage of shoppers who make a purchase after entering a store?

Answer: Conversion rate

Conversion rate is the ratio of transactions to total store visitors, indicating how effectively traffic is turned into sales.

What does 'shopper basket size' refer to in retail analytics?

Answer: Average number of items or dollar value per transaction

Basket size measures the average quantity or dollar value of items a shopper purchases in a single transaction.

A retail analyst notices a high browse-to-buy ratio online. What does this indicate?

Answer: Shoppers visit but do not complete purchases

A high browse-to-buy ratio signals friction in the purchase funnel, such as price, UX issues, or lack of trust signals.

Which customer segmentation model divides shoppers based on Recency, Frequency, and Monetary value?

Answer: RFM analysis

RFM analysis segments customers by how recently they purchased, how often, and how much they spend to identify high-value shoppers.

What is 'share of wallet' in consumer behavior analysis?

Answer: Percentage of category spending a customer gives to one retailer

Share of wallet measures what portion of a customer's total category spend is captured by a specific retailer versus competitors.

In heatmap analysis of store layouts, what does a 'cold zone' represent?

Answer: Areas with very low shopper traffic or dwell time

Cold zones are store areas that receive minimal foot traffic, signaling opportunities to reposition products or improve signage.