CMD Customer Experience and Relationship Management 1 — Questions and Answers
Question 1: Which metric best measures a customer's likelihood to recommend a brand to others?
- Net Promoter Score (NPS) (Correct answer)
- Customer Effort Score (CES)
- Customer Satisfaction Score (CSAT)
- Churn Rate
Correct answer: Net Promoter Score (NPS)
NPS measures customer loyalty by asking how likely they are to recommend the brand on a 0–10 scale.
Question 2: A marketing director wants to reduce customer churn. Which strategy is most proactive?
- Offering win-back discounts after cancellation
- Implementing predictive churn modeling to identify at-risk customers (Correct answer)
- Increasing ad spend to replace lost customers
- Reducing product prices across the board
Correct answer: Implementing predictive churn modeling to identify at-risk customers
Predictive churn modeling uses behavioral data to identify at-risk customers before they leave, enabling proactive retention efforts.
Question 3: Customer Lifetime Value (CLV) is primarily used to:
- Measure quarterly revenue growth
- Determine how much to invest in acquiring and retaining a customer segment (Correct answer)
- Calculate the cost of a single transaction
- Forecast annual market share
Correct answer: Determine how much to invest in acquiring and retaining a customer segment
CLV helps marketers decide how much budget to allocate to acquisition and retention by estimating the total revenue a customer will generate over their relationship with the brand.
Question 4: In a Customer Journey Map, which stage focuses on the customer's first awareness of a brand?
- Retention
- Consideration
- Awareness (Correct answer)
- Advocacy
Correct answer: Awareness
The Awareness stage is where a prospect first discovers the brand, typically through advertising, word-of-mouth, or organic search.
Question 5: Which CRM strategy segment targets customers who have purchased frequently and recently with high spend?
- RFM segmentation — High segment (Correct answer)
- Persona-based targeting
- Geographic clustering
- Behavioral lookalike modeling
Correct answer: RFM segmentation — High segment
RFM (Recency, Frequency, Monetary) segmentation identifies high-value customers based on their most recent purchase, how often they buy, and how much they spend.
Question 6: An omnichannel CX strategy differs from a multichannel strategy primarily because:
- It uses more advertising platforms
- It integrates all channels so the customer experience is seamless and consistent (Correct answer)
- It eliminates offline channels
- It focuses solely on digital touchpoints
Correct answer: It integrates all channels so the customer experience is seamless and consistent
Omnichannel integrates data and messaging across every channel so customers receive a consistent, connected experience regardless of where they engage.
CMD Customer Experience and Relationship Management 1
Which metric best measures a customer's likelihood to recommend a brand to others?