Propensity Modeling

Advanced 📣 Marketing / Advertising

Definition

Using data science to predict which users are most likely to take a desired action—basically treating humans like a statistical model and hoping they cooperate.

Example Usage

Our propensity model identified 100,000 users with an 8% likelihood of purchasing, which we targeted with a special offer.

Origin

Statistical modeling adapted from credit scoring into marketing analytics in the 2010s.

Fun Fact

Machine learning propensity models can be 30-50% more accurate than human prediction, but they need continuous retraining to stay relevant.

Source: Marketing Data Science and Machine Learning

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