SBA Marketing Techniques & Customer Relations 2 — Questions and Answers
Question 1: A small business wants to re-engage customers who haven't purchased in 6 months. Which strategy is most appropriate?
- Launch a broad TV advertising campaign
- Send a win-back email with a personalized discount offer (Correct answer)
- Increase prices to improve perceived value
- Remove inactive customers from the database permanently
Correct answer: Send a win-back email with a personalized discount offer
Win-back email campaigns with personalized incentives are a cost-effective way to re-engage lapsed customers by reminding them of value they previously found.
Question 2: Which metric best measures the long-term value of a customer relationship?
- Average transaction size
- Customer Lifetime Value (CLV) (Correct answer)
- Gross margin percentage
- Website bounce rate
Correct answer: Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) calculates the total revenue a business can expect from a single customer throughout their entire relationship.
Question 3: A business owner notices that 20% of customers generate 80% of revenue. This observation is best described as the:
- Law of diminishing returns
- Pareto Principle (Correct answer)
- Break-even analysis
- Market segmentation rule
Correct answer: Pareto Principle
The Pareto Principle (80/20 rule) states that roughly 80% of effects come from 20% of causes, commonly observed in customer revenue distribution.
Question 4: Which type of marketing focuses on building relationships with a small number of high-value business clients?
- Mass marketing
- Account-based marketing (ABM) (Correct answer)
- Guerrilla marketing
- Viral marketing
Correct answer: Account-based marketing (ABM)
Account-based marketing (ABM) targets specific high-value accounts with personalized campaigns rather than casting a wide net.
Question 5: A customer complains publicly on social media about a product defect. The best first response is to:
- Ignore the post to avoid drawing attention to it
- Delete the customer's comment
- Respond publicly with empathy and invite private resolution (Correct answer)
- Offer a full refund immediately in the public post
Correct answer: Respond publicly with empathy and invite private resolution
Publicly acknowledging the complaint with empathy and moving the resolution to a private channel demonstrates responsiveness while protecting customer privacy.
Question 6: Which pricing strategy involves setting a high initial price and lowering it over time as competition increases?
- Penetration pricing
- Cost-plus pricing
- Price skimming (Correct answer)
- Bundle pricing
Correct answer: Price skimming
Price skimming starts with a high price to capture early adopters and maximize revenue before reducing prices to attract more price-sensitive customers.
Question 7: A Net Promoter Score (NPS) survey asks customers to rate their likelihood to recommend a business on a scale of 0-10. Customers who score 9-10 are called:
- Passives
- Detractors
- Neutrals
- Promoters (Correct answer)
Correct answer: Promoters
NPS classifies respondents scoring 9-10 as Promoters, 7-8 as Passives, and 0-6 as Detractors; NPS is calculated as % Promoters minus % Detractors.
SBA Marketing Techniques & Customer Relations 2
A small business wants to re-engage customers who haven't purchased in 6 months.
Which strategy is most appropriate?