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

NPS measures customer loyalty by asking how likely customers are to recommend your brand on a 0-10 scale, segmenting them into Promoters, Passives, and Detractors.

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

Points-based programs let customers earn points per purchase and redeem them for tangible rewards like discounts or free products, directly incentivizing repeat purchases.

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

Personalized recommendations surface products relevant to each customer's preferences and history, making shopping more engaging and convenient, which drives repeat visits and purchases.

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

Purchase Frequency measures how many times an average customer buys from your store within a set period, serving as a direct indicator of customer loyalty and retention health.

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

Subscription commerce creates predictable recurring revenue while dramatically improving retention, as customers commit to regular purchases and develop strong habitual buying patterns.

eCommerce Marketing Practice Test

eCommerce Marketing Practice Test

eCommerce Marketing Customer Retention and Loyalty Programs for eCommerce 2