Definition of Predictive Scoring
The use of predictive models to assign a score that indicates the likelihood of a future outcome.
Explanation of Predictive Scoring
Predictive scoring is a technique used to assign a score or value to leads, customers, or prospects based on their likelihood of taking a desired action, such as making a purchase or becoming a loyal customer. This scoring is achieved through predictive modeling, which analyzes historical data and identifies patterns that correlate with the desired outcome. Businesses use predictive scoring to prioritize leads, tailor marketing efforts, and allocate resources more effectively. For example, a company might use predictive scoring to rank leads based on their potential to convert into paying customers, allowing sales teams to focus on the most promising prospects. Predictive scoring can also be applied to customer retention, identifying which customers are at risk of churn and implementing targeted retention strategies. By using predictive scoring, businesses can improve their decision-making, increase efficiency, and achieve better results.