Customer Insights Flashcards

Which technique segments customers based on their most recent purchase, purchase frequency, and total spend?

Answer: RFM analysis

RFM (Recency, Frequency, Monetary) analysis segments customers using three behavioral dimensions to identify high-value segments.

A company finds that customers who buy product A also tend to buy product B. Which analytical method uncovered this relationship?

Answer: Market basket analysis

Market basket analysis (association rule mining) identifies products frequently purchased together to reveal cross-sell opportunities.

What is the primary purpose of a customer journey map in marketing analytics?

Answer: To visualize touchpoints and pain points across the customer experience

Customer journey maps document each interaction a customer has with a brand, highlighting friction points and opportunities for improvement.

Voice of the Customer (VoC) programs primarily collect data through which method?

Answer: Surveys, interviews, and feedback forms

VoC programs capture customer opinions, expectations, and preferences directly through surveys, interviews, focus groups, and feedback channels.

Which metric measures the percentage of customers who continue using a product or service over a given period?

Answer: Retention rate

Retention rate measures the proportion of customers who remain active customers from one period to the next.

A marketer wants to understand the emotional drivers behind customer purchases. Which research approach is most appropriate?

Answer: Ethnographic research

Ethnographic research observes customers in their natural environment to uncover deep emotional and behavioral motivations that surveys may miss.

What does 'share of wallet' measure in customer insight analysis?

Answer: The percentage of a customer's total spending in a category that goes to your brand

Share of wallet quantifies how much of a customer's total category spending is captured by your brand versus competitors.