Sample interview questions: How do you assess the effectiveness of retail marketing campaigns in driving customer acquisition and retention?
Sample answer:
Assessing the Effectiveness of Retail Marketing Campaigns for Customer Acquisition and Retention
1. Customer Acquisition Metrics:
- New Customer Acquisition Rate: Percentage of new customers acquired during the campaign period.
- Cost per Acquisition (CPA): Total marketing spend divided by the number of new customers acquired.
- Response Rate: Percentage of potential customers who took a desired action (e.g., purchase, subscription).
2. Customer Retention Metrics:
- Repeat Purchase Rate: Percentage of customers who make multiple purchases during the campaign period.
- Customer Lifetime Value (CLTV): Estimated revenue generated by a customer over their lifetime.
- Churn Rate: Percentage of customers who stop doing business with the company during the campaign period.
3. Customer Satisfaction and Engagement Metrics:
- Customer Satisfaction Score (CSAT): Surveys or feedback mechanisms to measure customer satisfaction with products/services.
- Net Promoter Score (NPS): Metrics to measure customer loyalty and willingness to recommend.
- Social Media Engagement: Number of interactions (likes, comments, shares) on social media platforms.
4. Financial Metrics: