eCommerce Marketing Customer Retention and Loyalty Programs for eCommerce 2

Question 1

What does Net Promoter Score (NPS) measure in eCommerce?

Accepted Answer

Customer likelihood to recommend a brand to others

Answer

Number of products recommended on the homepage

Answer

Average revenue generated per customer referral

Answer

Percentage of orders fulfilled without errors

Question 2

In a points-based loyalty program, what typically happens once a customer accumulates enough points?

Accepted Answer

They can redeem points for discounts, free products, or other rewards

Answer

They are automatically upgraded to a premium subscription tier

Answer

Their account is flagged for a fraud review

Answer

They receive a physical loyalty card mailed to their address

Question 3

What is the primary retention benefit of personalized product recommendations in eCommerce?

Accepted Answer

They help customers discover relevant products, increasing likelihood of repeat purchases

Answer

They reduce website page load time

Answer

They automatically apply discount codes at checkout

Answer

They enable one-click checkout for all returning customers

Question 4

What does 'Purchase Frequency' measure in the context of eCommerce customer retention?

Accepted Answer

How often a customer buys from a store within a given time period

Answer

The number of unique visitors who make at least one purchase

Answer

The speed at which customer orders are processed and shipped

Answer

The number of products available in each category

Question 5

What is subscription commerce (e.g., subscription boxes) primarily designed to achieve for eCommerce businesses?

Accepted Answer

Generating predictable recurring revenue and increasing customer retention

Answer

Reducing product inventory and warehousing costs

Answer

Enabling free shipping on all orders sitewide

Answer

Automating customer service ticket responses

Question 6

Which retention tactic involves sending customers an unexpected gift, upgrade, or discount that was not previously announced?

Accepted Answer

Surprise and delight

Answer

Scheduled promotional campaign

Answer

Referral incentive program

Answer

Abandoned cart recovery sequence

Question 7

What does RFM analysis stand for in eCommerce customer segmentation?

Accepted Answer

Recency, Frequency, Monetary value

Answer

Revenue, Frequency, Margin

Answer

Reach, Funnel, Metrics

Answer

Retention, Fulfillment, Marketing