eCommerce Marketing Customer Retention and Loyalty Programs for eCommerce

Question 1

What metric measures the percentage of customers who return to make a repeat purchase within a specific period?

Accepted Answer

Repeat Purchase Rate

Answer

Customer Acquisition Cost

Answer

Bounce Rate

Answer

Return on Ad Spend

Question 2

Which type of loyalty program segments customers into levels based on their cumulative spending thresholds?

Accepted Answer

Tiered loyalty program

Answer

Points-based program

Answer

Cashback program

Answer

Coalition loyalty program

Question 3

What is the primary goal of a post-purchase email sequence in an eCommerce retention strategy?

Accepted Answer

Nurturing customer relationships to encourage repeat purchases

Answer

Acquiring new customers through paid referrals

Answer

Promoting flash sales to general audiences

Answer

Collecting payment data for future one-click orders

Question 4

Which formula correctly calculates Customer Lifetime Value (CLV)?

Accepted Answer

CLV = (Average Order Value × Purchase Frequency) / Churn Rate

Answer

CLV = Total Revenue / Number of Customers

Answer

CLV = Customer Acquisition Cost × Retention Rate

Answer

CLV = Average Order Value / Customer Acquisition Cost

Question 5

What does 'customer churn rate' measure in eCommerce?

Accepted Answer

The percentage of customers who stop purchasing during a given period

Answer

The rate at which new customers are acquired

Answer

The average number of items returned per order

Answer

The speed at which customers complete the checkout process

Question 6

Which retention strategy involves identifying and providing exclusive benefits to a store's highest-spending customers?

Accepted Answer

VIP or tiered loyalty programs

Answer

Affiliate marketing

Answer

Retargeting ad campaigns

Answer

Cold email outreach

Question 7

According to email marketing best practices, when should a 'win-back' email campaign begin for lapsed eCommerce customers?

Accepted Answer

30-90 days after last purchase

Answer

1-7 days after last purchase

Answer

6-12 months after last purchase

Answer

Immediately after account creation