Propensity Modelling

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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

Propensity modelling includes several approaches and techniques with the following techniques:

  • Propensity Score Matching (PSM)
  • Propensity Score Stratification (PSS)
  • Propensity Score Weighting (PSW)