Category: Thoughts On

During some interview preparation, I learned about this type of modeling called “propensity modeling”. The premise is pretty cool. For companies trying to understand the “true” value of a customer, propensity modeling helps inform where attention should be focused. This is done in three often-connected ways, finding out who is most likely to become a customer, determining which of my customers hold most risk of churn, and determining which of my customers offer the most long term value.