Propensity Model

Propensity modeling is employing a statistical approach that identifies who in your audience or customer base is most likely to take a certain action such as making a purchase, unsubscribing from an email or signing up for something. The propensity is the probability that someone in your audience will do something. From there, marketing efforts can be focused on those leads or customers where engagement could affect a change in behavior (i.e. help them make a purchase). Propensity modelling dates back to 1983, according to OpenJawtech.com, but it’s only recently with the evolution of machine learning that its potential for marketers has really been unleashed.