Practice Test GeeksCSS - Customer Service Situations Practice Test
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Customer Retention Techniques Flashcards

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  1. What is a 'save offer' in a customer retention context?

    Answer: A special incentive offered to a customer who is about to cancel to encourage them to stay

    A 'save offer' is a targeted incentive—such as a discount, upgrade, or added benefit—given to a customer actively considering leaving to persuade them to remain.

  2. Which metric BEST measures the success of customer retention efforts?

    Answer: Customer churn rate

    Customer churn rate—the percentage of customers who stop doing business with a company—directly reflects how well retention efforts are working.

  3. During a retention call, when is it MOST appropriate to escalate to a supervisor?

    Answer: When the customer's issue or demands exceed your authority to resolve

    Escalation is appropriate when a customer's needs or demands exceed what you are authorized to offer, ensuring the customer receives the best possible resolution.

  4. A customer informs you they found the same service at 20% lower cost from a competitor. What is the BEST response?

    Answer: 'I understand your concern. Let me review what options we have to offer you the best value.'

    Acknowledging the concern and exploring available options shows the customer you value their business and are committed to finding a solution.

  5. What does 'churn rate' measure in a customer service context?

    Answer: The percentage of customers who stop using a product or service in a given period

    Churn rate measures how many customers leave or stop doing business with a company within a specific timeframe, directly reflecting retention effectiveness.

  6. Retaining existing customers is generally more cost-effective than acquiring new ones because:

    Answer: Acquiring a new customer can cost five to seven times more than retaining a current one

    Research consistently shows that acquiring a new customer costs significantly more than retaining an existing one, making retention a high-return strategy.

  7. Which of the following is LEAST likely to support effective customer retention?

    Answer: Changing company policies frequently without notifying customers

    Frequently changing policies without notice erodes customer trust and creates frustration, making customers more likely to leave rather than stay.