Scoring Model Excel Template

Description
Based on the score they obtain, scoring models help you to decide what elements to prioritize in your business. E.g. a scoring model can be created to prevent employees from leaving the company. This works by creating a score that depends on both the performance of the employee and the probability of them leaving. The aim is to act first on the employees identified that have a high performance but also a high probability of leaving. Scoring models can also be very useful when it comes to marketing. E.g. customers can be scored based on the probability of them responding positively a marketing phone call. Based on the company's resources, you can then decide to call only the first X customers.

This particular model proposes scoring customer's value based on how likely they are to purchase a product and how much money they are likely to spend. This is the result of 2 sub-models:

-Purchase probability: A logistic regression is used to estimate the purchase probability of a client in the next period.

-Amount: A linear regression is used to estimate the amount of money that a client could potentially spend on his/her next purchase.