What is ... a propensity model?

A propensity model is a statistical scorecard that is used to predict the behaviour of your customer or prospect base.

Propensity models are often used to identify those most likely to respond to an offer, or to focus retention activity on those most likely to churn.

The model may be applied to your database to score all your customers or prospects. You can then select only those who are most likely to exhibit the predicted behaviour, for example response, and focus your mailing activity appropriately.

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