CSM Customer Relationship Management & Retention 2 — Questions and Answers
Question 1: A sales manager notices that customers who interact with the company on three or more channels have a 30% higher retention rate. This insight best illustrates which CRM principle?
- Single-channel dominance
- Omnichannel engagement drives loyalty (Correct answer)
- Reducing touchpoints lowers churn
- Social media is the primary retention tool
Correct answer: Omnichannel engagement drives loyalty
Omnichannel engagement connects customers across multiple touchpoints, deepening relationships and increasing retention.
Question 2: Which metric directly measures the average revenue generated per customer over the entire business relationship?
- Customer Acquisition Cost (CAC)
- Net Promoter Score (NPS)
- Customer Lifetime Value (CLV) (Correct answer)
- Monthly Recurring Revenue (MRR)
Correct answer: Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) quantifies the total revenue a business can expect from a single customer throughout the relationship.
Question 3: A B2B sales team is implementing a tiered account management program. What is the PRIMARY benefit of segmenting customers into tiers?
- Eliminating the need for CRM software
- Allocating resources proportionally to customer value (Correct answer)
- Standardizing all customer interactions
- Reducing the sales team headcount
Correct answer: Allocating resources proportionally to customer value
Tiered account management ensures high-value customers receive more intensive support while resources are efficiently distributed.
Question 4: During a quarterly business review (QBR), a sales manager should primarily focus on:
- Promoting new products to increase upsell revenue
- Reviewing mutual goals, progress, and strategic alignment with the customer (Correct answer)
- Renegotiating contract pricing downward
- Introducing new account team members
Correct answer: Reviewing mutual goals, progress, and strategic alignment with the customer
QBRs are strategic touchpoints designed to assess progress toward shared goals and reinforce the customer partnership.
Question 5: Which of the following is the BEST early indicator that a customer may be at risk of churning?
- The customer submits a feature request
- Declining product usage or login frequency (Correct answer)
- The customer negotiates a multi-year contract
- An increase in support tickets for new features
Correct answer: Declining product usage or login frequency
Declining engagement with the product is a leading behavioral signal that a customer may be disengaging and considering leaving.
Question 6: A customer success framework that maps the steps a customer takes from onboarding to advocacy is called a:
- Sales funnel
- Customer journey map (Correct answer)
- Revenue forecast model
- Competitive analysis matrix
Correct answer: Customer journey map
A customer journey map visualizes the complete experience from initial onboarding through renewal and advocacy stages.
Question 7: What is the primary goal of a win-back campaign in CRM?
- Converting cold prospects into new customers
- Re-engaging former customers who have churned (Correct answer)
- Upselling premium features to active customers
- Training the sales team on new products
Correct answer: Re-engaging former customers who have churned
Win-back campaigns target lapsed customers with tailored outreach to re-establish the relationship and regain their business.
CSM Customer Relationship Management & Retention 2
A sales manager notices that customers who interact with the company on three or more channels have a 30% higher retention rate.
This insight best illustrates which CRM principle?