Customer Service and CRM in E-Commerce: Support Channels, Service Quality, Retention and Loyalty Programs Questions

Question 1

Explain retention and loyalty programs in e-commerce (exam-style) with headings and a table.

Accepted Answer

### Retention (meaning)
**Retention** means keeping customers and encouraging repeat purchases (concept). It improves **LTV** and reduces dependence on high acquisition spend.

### Loyalty programs (meaning)
Loyalty programs reward repeat behavior (points, tiers, cashback, memberships) (concept).

| Type | Example benefit (concept) |
|---|---|
| **Points-based** | earn points per order; redeem later |
| **Tier-based** | higher tier = faster delivery/extra offers |
| Cashback/credits | store credit on next purchase |
| Membership | free delivery/early access (overview) |

Conclusion: Good loyalty design improves repeat purchase rate and long-term profitability (concept).

Question 2

Discuss key CRM metrics (CSAT, NPS, FCR, AHT) and why they matter (exam-style) with a table.

Accepted Answer

### Key metrics

| Metric | Meaning (concept) | Why it matters (concept) |
|---|---|---|
| **CSAT** | satisfaction after interaction/order | indicates service quality |
| **NPS** | likelihood to recommend | measures loyalty/brand advocacy |
| **FCR** | solved in first contact | reduces cost and improves CSAT |
| **AHT** | time to handle case | efficiency and staffing planning |

Conclusion: Improving FCR and resolution time typically improves CSAT and retention (concept).

Question 3

Explain how e-commerce companies can reduce churn (customer loss) and improve retention (exam-style) using a table.

Accepted Answer

### Reducing churn and improving retention
Retention improves when customers get reliable delivery, easy returns/refunds, and personalized value (concept).

| Cause of churn (concept) | Retention action (concept) |
|---|---|
| late delivery/poor tracking | proactive updates + reliable SLA |
| refund delays | faster refund processing + transparency |
| product mismatch | better catalogue + reviews + size guidance |
| poor support | omnichannel support + higher **FCR** |
| low engagement | personalized offers + loyalty points |

Conclusion: Better service + CRM-driven personalization increases repeat purchases and LTV (concept).

Question 4

Define CRM.

Accepted Answer

**CRM (Customer Relationship Management)** is a process/system for managing customer information and interactions to improve customer experience, retention and sales (concept).

Question 5

What is CSAT?

Accepted Answer

**CSAT** is a customer satisfaction score collected after an order or support interaction (concept).

Question 6

NPS measures likelihood to recommend. (True/False)

Accepted Answer

True. **NPS** measures likelihood to recommend (promoters vs detractors) (concept).

Question 7

FCR stands for First Contact Resolution. (True/False)

Accepted Answer

True. **FCR** is the % of issues resolved in the first customer interaction (concept).

Question 8

State any one support channel used in e-commerce.

Accepted Answer

Any one: **chat**, email tickets, phone/call center, help center/FAQs, or social media support (concept).

Question 9

Loyalty programs aim to increase repeat purchases. (True/False)

Accepted Answer

True. Loyalty programs encourage repeat purchases and improve **retention** (concept).

Question 10

Explain omnichannel support (any three points) using a table.

Accepted Answer

**Omnichannel support** provides a consistent customer experience across multiple channels (concept).

| Point | Meaning (concept) |
|---|---|
| Channel continuity | customer can switch chat → email → phone smoothly |
| Unified history | agent can see past tickets/orders |
| Consistent policies | same refund/return rules across channels |

Any three points are sufficient.

Question 11

List key support channels in e-commerce and one advantage of each (use a table).

Accepted Answer

Channels and advantages (concept):

| Channel | Advantage |
|---|---|
| **Chat** | fast responses; can combine bot + human |
| **Email tickets** | documented trail; good for non-urgent issues |
| Phone/call center | urgent/complex issues resolved quickly |
| **Self-service (FAQs/tracking)** | reduces effort and support load |

Write any three rows.

Question 12

Explain service quality dimensions in e-commerce (any three) using a table.

Accepted Answer

Service quality dimensions (concept):

| Dimension | Meaning (concept) |
|---|---|
| **Reliability** | correct product + on-time delivery + accurate tracking |
| **Responsiveness** | quick replies and fast resolution |
| **Assurance** | secure refunds, trained agents, confidence |
| Empathy | polite and understanding support |

Write any three.

Question 13

Write basic complaint handling steps (any five) and draw a simple flowchart.

Accepted Answer

Any five steps (concept):
- acknowledge and create ticket
- verify order details/evidence
- classify issue (delivery/return/payment)
- resolve (refund/replacement/info)
- escalate if needed
- close ticket + collect **CSAT** (concept)

Flowchart:

```text
Issue -> Ticket -> Verify -> Resolve/Escalate -> Close -> Feedback
```

Question 14

Differentiate CSAT and NPS (any three points) using a table.

Accepted Answer

Difference (concept):

| Basis | **CSAT** | **NPS** |
|---|---|---|
| What it measures | satisfaction after interaction/order | likelihood to recommend |
| Timing | usually after a ticket/order | periodic relationship metric |
| Scale/output | satisfaction score | promoters vs detractors score |

Any three points are sufficient.

Question 15

Explain any three ways CRM helps improve retention in e-commerce (use a table).

Accepted Answer

CRM improves retention by using customer data to personalize and solve issues faster (concept).

| CRM use | How it improves retention (concept) |
|---|---|
| **Segmentation** | different offers for new vs repeat customers |
| Ticket history | faster resolution and higher **FCR** |
| Personalization | recommendations based on past purchases |
| Campaign automation | reminders, loyalty points, win-back messages |

Write any three points.

Type	Example benefit (concept)
Points-based	earn points per order; redeem later
Tier-based	higher tier = faster delivery/extra offers
Cashback/credits	store credit on next purchase
Membership	free delivery/early access (overview)

Metric	Meaning (concept)	Why it matters (concept)
CSAT	satisfaction after interaction/order	indicates service quality
NPS	likelihood to recommend	measures loyalty/brand advocacy
FCR	solved in first contact	reduces cost and improves CSAT
AHT	time to handle case	efficiency and staffing planning

Cause of churn (concept)	Retention action (concept)
late delivery/poor tracking	proactive updates + reliable SLA
refund delays	faster refund processing + transparency
product mismatch	better catalogue + reviews + size guidance
poor support	omnichannel support + higher FCR
low engagement	personalized offers + loyalty points

Customer Service and CRM in E-Commerce: Support Channels, Service Quality, Retention and Loyalty Programs

Retention (meaning)

Loyalty programs (meaning)

Key metrics

Reducing churn and improving retention

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