Customer Insights

Propensity to Purchase

The Propensity to Purchase-model classifies customers by their likelihood to purchase in the future - based on historical data. This insight can be integrated into marketing and sales strategies.

To understand the chart here is an explanation:

• Each customer is grouped based on number of orders (O = 1, O = 2, O = 3, etc), and the chart displays a colored line for each group.
• For each group the propensity (y-axis) specifies the probability of another purchase for a customer within the group
  • For an example, see the group hovered in the below image. Here we can see that it's 24,3% probability that a customer that has one order and has been inactive 1 month, will perform another purchase before the specified inactive period (6 months)

Below the image you can add more groups with customers that have more orders (in the image we show groups with customers having 1-5 orders). You can also edit the parameter that specifies the number of months until user becomes inactive. By specifying this to 1 month you can get an idea of how money customers will move from having 1 order to 2 orders, from 2 orders to 3 orders, etc within the coming month.

The "Months of inactivity to show"-bar only changes the number of months shown in the chart.