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Retention Strategies Flashcards

7 cards from real GMC practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

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  1. A SaaS company notices users who complete onboarding in under 10 minutes have 3x higher 90-day retention. What should they prioritize?

    Answer: Streamline onboarding to help all users reach the key milestone faster

    Accelerating time-to-value by optimizing onboarding for speed directly correlates with higher retention based on observed behavioral data.

  2. Which metric best measures whether users are deriving ongoing value from a product?

    Answer: Feature adoption rate among active users

    Feature adoption rate reveals whether active users are engaging with core product capabilities, indicating ongoing value realization.

  3. What is 'expansion revenue' in the context of retention strategy?

    Answer: Additional revenue generated from existing customers through upsells or cross-sells

    Expansion revenue comes from growing the value of existing customer relationships through upgrades, add-ons, or cross-sell products.

  4. A mobile app's 7-day retention drops sharply on Day 3. What is the most likely cause to investigate first?

    Answer: Users hit a friction point or fail to discover core value by Day 3

    A Day 3 drop-off typically signals users haven't experienced the product's core value proposition, causing disengagement before habit formation.

  5. Which segmentation approach is most useful for designing targeted win-back campaigns?

    Answer: Segment churned users by reason for leaving and recency of churn

    Segmenting by churn reason and recency allows you to craft relevant messages addressing specific barriers and prioritize the most recoverable users.

  6. What is the primary purpose of a customer health score?

    Answer: To predict churn risk by aggregating behavioral and engagement signals

    A health score aggregates signals like login frequency, feature usage, and support history to predict which accounts are at risk of churning.

  7. A subscription box company wants to reduce involuntary churn. Which tactic directly addresses this?

    Answer: Implementing automated failed payment recovery and card-update reminders

    Involuntary churn from failed payments is reduced by dunning management systems that retry charges and prompt customers to update payment details.