CRA CRA Customer Analytics & Consumer Behavior 2 — Questions and Answers
Question 1: Which analysis technique compares purchasing behavior of customers grouped by their first purchase date?
- RFM analysis
- Cohort analysis (Correct answer)
- SWOT analysis
- Pareto analysis
Correct answer: Cohort analysis
Cohort analysis tracks groups of customers who share a common characteristic over time, such as their acquisition date.
Question 2: What does a Net Promoter Score (NPS) measure in retail?
- Product return likelihood
- Customer willingness to recommend the retailer (Correct answer)
- Average transaction frequency
- Inventory accuracy rate
Correct answer: Customer willingness to recommend the retailer
NPS gauges customer loyalty by asking how likely shoppers are to recommend the retailer to others, on a 0–10 scale.
Question 3: A retailer's loyalty program data shows 20% of customers generate 80% of revenue. This reflects which principle?
- Law of large numbers
- Pareto principle (Correct answer)
- Regression to the mean
- Central limit theorem
Correct answer: Pareto principle
The Pareto principle (80/20 rule) commonly appears in retail where a small share of customers drives the majority of sales.
Question 4: Which metric tracks the total revenue a customer generates throughout their relationship with a retailer?
- Customer acquisition cost
- Customer lifetime value (CLV) (Correct answer)
- Churn rate
- Cost per click
Correct answer: Customer lifetime value (CLV)
Customer lifetime value (CLV) estimates the total net revenue a retailer can expect from a customer over the entire relationship.
Question 5: What is 'market basket analysis' used for in retail?
- Measuring store square footage efficiency
- Identifying products frequently purchased together (Correct answer)
- Forecasting seasonal demand peaks
- Evaluating supplier performance
Correct answer: Identifying products frequently purchased together
Market basket analysis mines transaction data to find product associations, informing cross-merchandising and promotional bundling strategies.
Question 6: A CRA analyst is asked to reduce customer churn. Which leading indicator is most useful to monitor?
- Gross margin percentage
- Purchase frequency decline among active loyalty members (Correct answer)
- Total SKU count
- Vendor fill rate
Correct answer: Purchase frequency decline among active loyalty members
Declining purchase frequency among loyalty members is an early warning sign that customers are disengaging before fully churning.
CRA CRA Customer Analytics & Consumer Behavior 2
Which analysis technique compares purchasing behavior of customers grouped by their first purchase date?