CSS Customer Retention Techniques 2 — Questions and Answers
Question 1: What is a 'save offer' in a customer retention context?
- A promotional offer sent to attract new customers
- A special incentive offered to a customer who is about to cancel to encourage them to stay (Correct answer)
- A discount applied automatically to a customer's first purchase
- A referral bonus given to existing customers
Correct 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.
Question 2: Which metric BEST measures the success of customer retention efforts?
- Number of new customer sign-ups per month
- Customer churn rate (Correct answer)
- Total number of customer service calls received
- Average call handle time
Correct 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.
Question 3: During a retention call, when is it MOST appropriate to escalate to a supervisor?
- When the customer requests any type of refund
- When you have successfully resolved the customer's concern
- When the customer's issue or demands exceed your authority to resolve (Correct answer)
- At the start of every call to make a good impression
Correct 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.
Question 4: A customer informs you they found the same service at 20% lower cost from a competitor. What is the BEST response?
- 'Our pricing is fixed and cannot be changed under any circumstances.'
- 'That competitor is unreliable — I would not recommend them.'
- 'I understand your concern. Let me review what options we have to offer you the best value.' (Correct answer)
- 'You should go with the competitor if the price is better for you.'
Correct 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.
Question 5: What does 'churn rate' measure in a customer service context?
- The speed at which customer service calls are resolved
- The percentage of customers who stop using a product or service in a given period (Correct answer)
- The number of new customers acquired each month
- The average time a customer spends on hold
Correct 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.
Question 6: Retaining existing customers is generally more cost-effective than acquiring new ones because:
- Existing customers spend less per transaction than new customers
- Acquiring a new customer can cost five to seven times more than retaining a current one (Correct answer)
- New customers always require more customer service support
- Existing customers never raise pricing concerns
Correct 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.
Question 7: Which of the following is LEAST likely to support effective customer retention?
- Personalizing communication based on the customer's history
- Following up with customers after resolving a complaint
- Changing company policies frequently without notifying customers (Correct answer)
- Offering a loyalty rewards program to long-term customers
Correct 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.
CSS Customer Retention Techniques 2
What is a 'save offer' in a customer retention context?