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Propensity Model

Propensity Model

Propensity Model

A propensity model estimates how likely a specific customer is to take a specific action, such as purchasing, churning, clicking, or converting.

Category

AI

Also known as

propensity score

It is used to prioritize segments and campaigns: contact the people most likely to respond, suppress those unlikely to respond, or prioritize the next best action.

In practice

Propensity is a probability, not a certainty. Use it to prioritize and size audiences, and validate it against real outcomes rather than trusting it blindly.

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