Purchase propensity refers to the propensity of customer segments to purchase a particular product. Organisations that have an in-depth understanding of their customer's purchase propensity will be far more effective in their up-sell, cross-sell and retention strategies than those who do not apply statistical analysis to their efforts. Lightstone's unique methodology for determining when, what and in which order a customer will purchase is market tested and supported by tangible results.
"Lightstone provides us with valuable insight into many 'grey' areas of our business,
and has truly assisted us in understanding our customers purchasing behaviour
and the overall effectiveness of our dealers within their primary marketing areas."
- Warren Olsen Honda Divisional Manager: Automobiles
Purchase Propensity Modeling Process
Effective purchase propensity modeling is reliant on a comprehensive, relevant data-set. Lightstone's proprietary framework - together with internal client data - provides a significant advantage in this respect.
Amongst the variables typically considered are the customer's:
- Demographic Profile
- Credit Profile
- Home Loan Profile
- Location Profile
- Purchase Behaviour in the last 12 month period across relevant categories
- Product Holding of all relevant products
The outcome of the purchase propensity modeling process is that clients have explicit insight into which customer segments are more or less likely to take up specific products, including which events are likely to trigger this behaviour. This allows more effective, focussed strategies to maximise profit to be developed and implemented.
Contact us for more information and pricing of Purchase Propensity Modeling.