Managing the customer journey_customer retention & development

Which of the following best defines customer retention?

• Acquiring new customers through marketing campaigns.

• Keeping existing customers engaged and loyal over time.

• Increasing the number of products sold to new customers.

• Reducing the cost of customer acquisition.

Why is customer retention more cost-effective than customer acquisition?

• Retained customers require no further marketing efforts.

• Retained customers are less likely to complain.

• Retained customers tend to spend more and refer others.

• Acquisition costs are negligible compared to retention costs.

Which customers should a business prioritize for retention efforts?

• All customers, regardless of profitability.

• Customers who frequently complain but still purchase.

• Only new customers with high acquisition costs.

• High-value, loyal customers who contribute significantly to revenue.

Which of the following is an example of a positive customer retention strategy?

• Charging a fee for early contract termination.

• Reducing customer service hours to cut costs.

• Offering exclusive rewards to loyal customers.

• Ignoring customer feedback to save time.

Which metric is most commonly used to measure the success of customer retention programs?

• Customer acquisition cost (CAC)

• Net Promoter Score (NPS).

• Gross profit margin.

• Customer churn rate.

A software company wants to implement a positive customer retention strategy. Which of the following is an example of creating "social and structural bonds"?

• Offering a discount on the next subscription renewal.

• Providing 24/7 technical support through a chatbot.

• Sending personalized emails with product updates.

• Creating an online community forum for customers to share tips and best practices.

How can research help reduce customer churn?

• By increasing marketing budgets for new customer acquisition.

• By focusing solely on acquiring new customers.

• By ignoring customer feedback to save time.

• By identifying reasons why customers leave and addressing those issues.

Which of the following is a strategy for customer development?

• Upselling or cross-selling products to existing customers.

• Offering discounts to new customers only.

• Terminating relationships with unprofitable customers.

• Reducing customer service quality to cut costs.

When should a business consider terminating a customer relationship?

• When the customer shows no signs of becoming profitable or strategically significant.

• When the customer is highly profitable and loyal.

• When the customer provides positive feedback.

• When the customer refers others to the business.

Which statement accurately reflects the economics of customer retention?

• Acquiring new customers is generally more cost-effective than retaining existing ones.

• Customer retention leads to reduced customer lifetime value (CLTV).

• Customer referrals have minimal impact on overall profitability.

• Retaining customers typically results in lower customer management costs over time.