Propensity to Buy

Propensity to buy is the estimated likelihood that a customer will purchase a specific product or service. It is based on historical data, behavior patterns, preferences, and other relevant factors. Businesses use this estimate to refine marketing, improve customer engagement, and allocate resources more efficiently.

Example

As an illustration, a lender estimates a 30% likelihood that an existing borrower will take up a card offer, based on past responses and account activity. It may use that estimate to choose whom to contact; its credit policy and application checks still determine whether an applicant receives credit.