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
What is the primary goal of a customer loyalty program?
Answer: To incentivize repeat purchases and deepen customer commitment
Loyalty programs are designed to reward repeat behavior and strengthen the emotional and transactional bond between customers and the brand.
Which metric is most commonly used to measure the likelihood that a customer will recommend a company to others?
Answer: Net Promoter Score (NPS)
NPS asks customers how likely they are to recommend the company on a scale of 0–10, categorizing them as Promoters, Passives, or Detractors.
Customer Lifetime Value (CLV) is best described as:
Answer: The projected total revenue a customer will generate over the entire relationship
CLV represents the total net profit attributed to the entire future relationship with a customer, helping businesses prioritize retention investment.
Which of the following is most effective at reducing customer churn?
Answer: Proactively identifying and engaging at-risk customers before they leave
Proactive outreach to at-risk customers—based on behavioral signals—addresses dissatisfaction before it leads to defection.
What distinguishes attitudinal loyalty from behavioral loyalty?
Answer: Attitudinal loyalty reflects emotional commitment; behavioral loyalty reflects repeat purchasing patterns
Attitudinal loyalty is about how customers feel about a brand, while behavioral loyalty refers to their observable purchasing actions.
Why is customer retention generally considered more cost-effective than customer acquisition?
Answer: Existing customers already trust the brand, reducing the cost and effort needed to generate repeat sales
Research consistently shows it costs 5–7 times more to acquire a new customer than to retain an existing one due to established trust and familiarity.
Which of the following best describes the role of personalization in building customer loyalty?
Answer: It demonstrates that the company values and understands the individual customer's needs
Personalization signals to customers that their preferences and history are recognized, which fosters emotional connection and repeat engagement.