Customer Service Practice Test 2025 – The Complete Guide to Mastering Your Certification!

Question: 1 / 400

What does customer retention refer to?

The process of acquiring new customers

The ability to keep customers over time

Customer retention refers to the ability to keep customers over time. This concept is crucial for businesses because retaining existing customers often costs less than acquiring new ones. It involves ensuring customer satisfaction and loyalty, which can lead to repeat purchases and long-term relationships.

When a business focuses on customer retention, it typically invests in providing excellent service, understanding customer needs, and creating positive experiences. This proactive approach not only helps in maintaining a steady revenue stream but also encourages customers to advocate for the brand, further enhancing the company's reputation and reach.

In contrast, customer acquisition, which involves gaining new customers, is not the same as retention, nor are strategies aimed at reducing costs or increasing visibility directly linked to keeping customers satisfied and engaged over a longer period.

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The strategy of reducing customer service costs

The method of increasing product visibility

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