Propensity modeling is a statistical technique used to predict the likelihood of a certain event occurring.
For example, a retailer might use propensity modeling to predict the likelihood of a customer making a purchase, or a bank might use it to predict the likelihood of a loan being repaid.
Propensity models are typically built using historical data, and the predictions they make are based on the relationships between different variables in that data. For example, a model might use a customer's past purchase history to see if the person is likely to make a purchase in the future again.