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Customer Retention & Loyalty Programs Flashcards

7 cards from real CEC 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 Retention & Loyalty Programs flashcards as text

  1. What is 'purchase frequency' and why is it a key loyalty program KPI?

    Answer: The number of times a customer buys within a defined time period, indicating program engagement effectiveness

    Purchase frequency directly reflects how well a loyalty program is motivating repeat buying behavior beyond what would occur organically.

  2. A beauty ecommerce brand allows loyalty points to be donated to charity. Which customer motivation does this primarily appeal to?

    Answer: Desire for social identity expression and values alignment

    Cause-linked loyalty options appeal to customers who want their spending to reflect their values, strengthening emotional brand connection.

  3. Which type of personalization in post-purchase retention is considered MOST effective for driving repeat purchases?

    Answer: Sending product recommendations based on individual purchase history and browsing behavior

    Behavioral personalization based on actual purchase and browse data produces highly relevant recommendations that directly address individual customer needs.

  4. An ecommerce company calculates its repeat customer rate at 28%. Industry benchmark is 35%. What should be the FIRST action?

    Answer: Audit the post-purchase experience to identify friction points and gaps in follow-up communication

    Auditing the existing post-purchase journey reveals the specific breakdown points before investing in new programs that may not address root causes.

  5. What is 'omnichannel loyalty' and why is it increasingly important for ecommerce brands with physical retail presence?

    Answer: A unified loyalty experience where customers earn and redeem rewards seamlessly across online and offline touchpoints

    Omnichannel loyalty removes the friction of siloed programs, creating a cohesive brand experience that recognizes customers however and wherever they shop.

  6. Which retention metric measures the percentage of revenue generated by returning customers versus new customers?

    Answer: Revenue Retention Rate (or Repeat Revenue Rate)

    Repeat Revenue Rate shows the financial weight of existing customer relationships, directly tying retention performance to business revenue health.

  7. A subscription ecommerce brand offers customers the option to 'pause' their subscription instead of canceling. What retention principle does this implement?

    Answer: Reducing perceived commitment to lower cancellation intent

    Offering a pause option reduces the irreversibility of cancellation decisions, keeping customers in the program during temporary low-intent periods.