CSS Customer Retention Techniques 2

Question 1

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

Accepted Answer

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

Answer

A promotional offer sent to attract new customers

Answer

A discount applied automatically to a customer's first purchase

Answer

A referral bonus given to existing customers

Question 2

Which metric BEST measures the success of customer retention efforts?

Accepted Answer

Customer churn rate

Answer

Number of new customer sign-ups per month

Answer

Total number of customer service calls received

Answer

Average call handle time

Question 3

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

Accepted Answer

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

Answer

When the customer requests any type of refund

Answer

When you have successfully resolved the customer's concern

Answer

At the start of every call to make a good impression

Question 4

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

Accepted Answer

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

Answer

'Our pricing is fixed and cannot be changed under any circumstances.'

Answer

'That competitor is unreliable — I would not recommend them.'

Answer

'You should go with the competitor if the price is better for you.'

Question 5

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

Accepted Answer

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

Answer

The speed at which customer service calls are resolved

Answer

The number of new customers acquired each month

Answer

The average time a customer spends on hold

Question 6

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

Accepted Answer

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

Answer

Existing customers spend less per transaction than new customers

Answer

New customers always require more customer service support

Answer

Existing customers never raise pricing concerns

Question 7

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

Accepted Answer

Changing company policies frequently without notifying customers

Answer

Personalizing communication based on the customer's history

Answer

Following up with customers after resolving a complaint

Answer

Offering a loyalty rewards program to long-term customers