Marketing Advice Customer Acquisition and Retention 2

Question 1

What does NPS (Net Promoter Score) measure?

Accepted Answer

The likelihood that customers will recommend your brand to others

Answer

NPS measures customer loyalty by asking how likely customers are to recommend your brand on a scale of 0–10, categorizing them as Promoters, Passives, or Detractors.

Question 2

A loyalty program that rewards customers with points for each purchase is an example of which retention strategy?

Accepted Answer

Transactional loyalty program

Answer

Transactional loyalty programs reward customers with points or discounts based on purchase behavior, encouraging repeat buying and long-term retention.

Question 3

Which customer retention tactic involves reaching out to customers who have stopped engaging with a brand?

Accepted Answer

Win-back campaign

Answer

Win-back (or re-engagement) campaigns target lapsed customers with special offers or personalized messages to revive their interest in the brand.

Question 4

What is the relationship between CLV and CAC that indicates a healthy business model?

Accepted Answer

CLV should be at least 3x the CAC

Answer

A CLV to CAC ratio of 3:1 or higher is considered a healthy benchmark, meaning the long-term revenue from a customer significantly outweighs the cost to acquire them.

Question 5

Which marketing approach segments customers based on how recently they purchased, how often they buy, and how much they spend?

Accepted Answer

RFM analysis

Answer

RFM (Recency, Frequency, Monetary) analysis segments customers based on three dimensions to identify high-value customers and target retention efforts effectively.

Marketing Advice Practice Test

Marketing Advice Practice Test

Marketing Advice Customer Acquisition and Retention 2