CSM Customer Relationship Management 2

Question 1

Which metric best estimates the total net profit a business expects from the entire future relationship with a customer?

Accepted Answer

Customer Lifetime Value

Answer

Customer Lifetime Value projects the net profit attributable to a customer over the whole relationship.

Question 2

A service manager segments customers by purchase frequency, recency, and spend. Which model is this?

Accepted Answer

RFM analysis

Answer

RFM stands for Recency, Frequency, and Monetary value, a common CRM segmentation approach.

Question 3

What is the primary purpose of a single customer view in a CRM system?

Accepted Answer

Consolidate all interactions and data about a customer in one record

Answer

A single customer view unifies data from all touchpoints so every team sees the same history.

Question 4

A customer who has not purchased in 18 months and ignores emails is best described as which lifecycle stage?

Accepted Answer

Lapsed or churned customer

Answer

Extended inactivity and non-engagement indicate a lapsed customer suited to win-back efforts.

Question 5

Which action most directly supports customer retention rather than acquisition?

Accepted Answer

Launching a loyalty program with tiered rewards

Answer

Loyalty programs reward repeat behavior and encourage existing customers to stay.

CSM - Certified Service Manager Practice Test