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

Repeat Purchase Rate tracks what percentage of customers come back to buy again, directly measuring how well a store retains its customer base.

Question 2

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

Accepted Answer

Tiered loyalty program

Answer

Tiered loyalty programs (e.g., Silver, Gold, Platinum) reward customers at different benefit levels based on how much they've spent in total, incentivizing higher spending.

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

Post-purchase email sequences nurture the customer relationship after a sale — providing order updates, product tips, and related suggestions — to drive repeat business.

Question 4

Which formula correctly calculates Customer Lifetime Value (CLV)?

Accepted Answer

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

Answer

CLV is calculated by dividing the product of Average Order Value and Purchase Frequency by the Churn Rate, representing total expected revenue from a customer over their lifetime.

Question 5

What does 'customer churn rate' measure in eCommerce?

Accepted Answer

The percentage of customers who stop purchasing during a given period

Answer

Churn rate measures the percentage of customers who stop buying from you during a specific timeframe, indicating how well you're retaining your existing customer base.

eCommerce Marketing Practice Test

eCommerce Marketing Practice Test

eCommerce Marketing Customer Retention and Loyalty Programs for eCommerce