CRA CRA Customer Analytics & Consumer Behavior 2

Question 1

Which analysis technique compares purchasing behavior of customers grouped by their first purchase date?

Accepted Answer

Cohort analysis

Answer

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?

Accepted Answer

Customer willingness to recommend the retailer

Answer

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?

Accepted Answer

Pareto principle

Answer

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?

Accepted Answer

Customer lifetime value (CLV)

Answer

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?

Accepted Answer

Identifying products frequently purchased together

Answer

Market basket analysis mines transaction data to find product associations, informing cross-merchandising and promotional bundling strategies.

(CRA) Certified Retail Analyst Practice Test