← All NCSA Flashcard Decks

Customer Loyalty & Retention Flashcards

7 cards from real NCSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Customer Loyalty & Retention flashcards as text
  1. A customer who has made a purchase, had a positive service experience, and now actively recommends the company is best classified as a:

    Answer: Brand advocate

    A brand advocate goes beyond repeat purchasing to actively promote the company, representing the highest rung on the customer loyalty ladder.

  2. What is customer 'share of wallet'?

    Answer: The proportion of a customer's spending in a category that goes to your company

    Share of wallet measures how much of a customer's total category spending is directed to your company versus competitors.

  3. Which of the following is the strongest predictor of long-term customer loyalty according to customer service research?

    Answer: Consistent delivery of effortless, reliable experiences

    Research, including CEB/Gartner studies, shows that reducing customer effort and delivering reliable experiences is the strongest driver of sustained loyalty.

  4. A 'customer win-back program' is designed to:

    Answer: Re-engage former customers who have stopped doing business with the company

    Win-back programs specifically target lapsed customers with tailored offers or outreach to revive the relationship and recover lost revenue.

  5. The 'loyalty ladder' model in customer relationship management describes:

    Answer: A sequential progression from prospect to advocate as trust and engagement deepen

    The loyalty ladder maps stages—suspect, prospect, customer, client, supporter, advocate—reflecting deepening commitment and relationship quality.

  6. Which customer segment is typically most valuable to focus retention efforts on?

    Answer: High-frequency, high-spend customers with long tenure

    Long-tenure, high-frequency, high-spend customers generate the most revenue and CLV, making them the highest-priority retention targets.

  7. What is the relationship between employee satisfaction and customer loyalty?

    Answer: Higher employee satisfaction generally leads to better service quality, which in turn drives higher customer loyalty

    The Service-Profit Chain framework demonstrates that engaged, satisfied employees deliver higher-quality service, which increases customer satisfaction and loyalty.