Dom. Reg. Evening -Prelim Exam Customer Analytics

Your company launches a loyalty program to improve customer retention. During a review meeting, two department heads argue about whether to focus on improving user experience on the app or offering more discounts. What approach would best align with the goals of customer analytics?

• Conduct a survey to gauge customer preferences

• Prioritize app improvements based on user behavior data

• Increase discount offers to attract more customers

• Focus on both app improvements and discounts equally

A business analyst finds that the sales of a specific product increased after a new campaign, but overall customer satisfaction decreased. How should this be interpreted to align with customer analytics goals?

• Continue the campaign because it boosts sales

• Identify dissatisfied customers and investigate their concerns

• Introduce discounts on other products to offset dissatisfaction

• Disregard satisfaction metrics as long as profits grow

A grocery chain uses customer analytics to identify buying patterns. After launching a healthy food section, the data shows mixed reviews from customers. What should be the next step to achieve the long-term goal of building customer loyalty?

• Focus only on loyal customers' feedback

• Stop the campaign if it doesn't yield immediate profit

• Refine the offering based on detailed segment analysis

• Prioritize other sections with guaranteed higher sales

A company is experiencing declining sales despite high customer engagement on its website. Which action should the leadership take to align with customer analytics objectives?

• Investigate the purchasing journey and identify pain points

• Increase advertising to drive more traffic to the site

• Launch new products based on competitors' offerings

• Offer loyalty points to improve sales numbers

A marketing team uses analytics to improve email campaigns. They discover that the open rate has improved, but the click-through rate remains low. Which goal should guide their next move?

• Improve subject line engagement further

• Optimize the content within emails for conversions

• Increase email frequency to reinforce brand recall

• Focus on another channel since email is underperforming

A subscription-based streaming service has identified that customers who watch a diverse range of content are more likely to remain subscribed. Which action aligns best with using lifetime value prediction to reduce churn?

• Increase the marketing budget to acquire new customers.

• Develop personalized recommendations to encourage diverse viewing habits.

• Focus on retaining high-paying customers through exclusive content offers.

• Reduce subscription fees to attract price-sensitive customers.

A telecom company observes that customers with high data usage are less likely to switch providers. However, a subset of these customers has started reducing usage. What approach should the company take based on churn analysis?

• Offer these customers free data add-ons to restore usage patterns.

• Focus on upselling higher-tier plans to compensate for reduced usage.

• Ignore the trend as long as overall churn rates are stable.

• Conduct surveys to identify reasons for decreased usage and act accordingly.

An e-commerce platform uses predictive modeling to segment customers by their lifetime value. They find that 20% of customers generate 80% of the revenue. What is the most effective strategy to retain these high-value customers?

• Focus all resources on acquiring more customers like them.

• Offer personalized loyalty programs and exclusive deals.

• Increase overall ad spending to drive traffic to the platform.

• Monitor competitors to ensure pricing remains competitive.

A gym notices that members who attend fewer than three sessions a month are at higher risk of canceling their memberships. Which proactive step best leverages churn analysis?

• Send motivational emails to these members emphasizing the benefits of regular attendance.

• Increase the price of membership for all users to offset potential revenue loss.

• Reduce membership fees for those identified as at-risk of churn.

• Focus marketing efforts on acquiring new members to replace churned ones.

A SaaS company uses customer data to predict lifetime value and churn rates. They discover that customers with frequent support interactions are less likely to churn but costlier to retain. What is the best course of action?

• Automate customer support to reduce costs while maintaining frequent interactions.

• Prioritize support for high-value customers and reduce support for others.

• Increase support staffing to handle more interactions.

• Focus on acquiring customers who require minimal support.