Customer Focus, Customer Performance, and Profit Impact - Customer loyalty

11 important questions on Customer Focus, Customer Performance, and Profit Impact - Customer loyalty

How do loyal customers (70-100) need to be managed differently? Give an example.

They should be rewarded for their loyalty with special offers and services that are not offered to other customers. For example, a loyalty program.

Repeat customers (50-69) are big spenders. What does this mean?

It means that they buy at above-average levels and frequently purchase products for others.

What is the difference between loyal customers and repeat customers?

  • Loyal customers and repeat customers are both very satisfied or satisfied customers with an excellent retention rate.
  • However, repeat customers are less likely than loyal customers to recommend the product of a specific business.
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Why are repeat customers at risk of becoming lost customers?

Because competitors can easily lure them away.

How can you transform repeat customers into loyal customers?

Offer them benefits that are designed to increase their satisfaction and retention.

What are captive customers (20-40)?

Captive customers are customers that are locked into their next purchase or simply cannot switch.

What can companies whose marketing efforts include the early detection of captive customers?

They can manage the dissatisfaction of its captive customers and thereby reduce the possibility that they will switch to a competitor when they are able to do so.

Why do new customers require critical care?

Because these customers have high expectations that need to be carefully managed in order to lift them to a higher level of customers loyalty.

What should a company do about unprofitable customers (0-40)?

Identify them and help them leave.

What is the calculation of net present score (NPS)?



For example:
  • Promoters: 60
  • Passively satisfied: 39
  • Detractors: 16
Total respondents to the survey: 115
(60/115)x100 - (16/115)x100 = 38% 

What are the three customer types of the NPS?

  1. Promoters
  2. Passives
  3. Detractors

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