Leveraging Propensity Scoring to Elevate Customer Retention and Acquisition

Leveraging Propensity Scoring to Elevate Customer Retention and Acquisition

The ability to pinpoint which customers to target and how to effectively engage them is the key to survival in the competitive retail industry – and the key to that survival lies in propensity scoring. Propensity scoring helps brands address two major challenges: improving customer retention and acquiring new customers who resemble their best ones.  

Challenge #1: Improving Customer Retention 

Retention is a significant concern for many brands, as maintaining existing customers is often more cost-effective than acquiring new ones. However, identifying which customers have the highest potential to spend more and stay loyal can be challenging. Propensity scoring addresses this by analyzing vast amounts of customer data to predict future behavior and spending potential. 

Phillip Crow, SVP of Product at Buxton, emphasized the importance of understanding customer value during the Elevar Summit 2024: "Buxton’s propensity scoring helps you get more customers, and it helps you get more out of your existing customers. The goal of propensity scoring is to unlock the full revenue potential in your database to maximize customer lifetime value." By using propensity scores, brands can focus their marketing efforts on high-potential customers, ensuring that resources are allocated efficiently and effectively. 

Furthermore, propensity scoring enables brands to create personalized marketing strategies tailored to individual customer profiles. This personalization can significantly enhance customer engagement and loyalty. As Crow noted, "Being able to tailor the offers, the messaging, the imagery, and speaking to individuals in the channels they want to be spoken to improves marketing results." 

Challenge #2: Finding More Customers Like Your Best Ones 

Acquiring new customers who resemble a brand's best customers is another critical challenge. Traditional lead scoring methods often fall short in capturing the complete picture of potential customers, leaving many sales opportunities untapped. Propensity scoring overcomes this limitation by using AI to analyze patterns in customer data and identify individuals who exhibit similar behaviors and attributes to a brand's top customers. 

Crow highlighted the effectiveness of this approach: "Buxton uses all AI technology to analyze literally billions of patterns of data to figure out what is that unique thumbprint that makes a best customer for your specific brand." By understanding these patterns, brands can create lookalike audiences to target potential customers who are likely to convert and become valuable assets. 

This targeted approach not only enhances customer acquisition efforts but also optimizes marketing spend by focusing on high-propensity individuals. Crow explained, "We consistently see unique patterns that tell us there's a much deeper science behind understanding a brand's customers. If you don't understand those differences, it's hard to improve conversations with the customer.” 


Propensity scoring is revolutionizing the way brands approach customer retention and acquisition. By leveraging advanced data analytics and AI, brands can accurately identify high-potential customers and create personalized marketing strategies that drive engagement and loyalty. This approach not only maximizes customer lifetime value but also enhances marketing efficiency and effectiveness. 

To learn more about how propensity scoring can transform your marketing strategy, watch this year’s Elevar Summit: https://youtu.be/tU1Zv3e3Ghg?si=uP95rZfSfkyvlGBs