FICO Optimization Solutions for Retail

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FICO Optimization Solutions for Retail

To be successful, retailers need to prepare for what they don’t expect, from the impacts of new payment options, to disruptive new entrants and innovations, increasingly complex global supply chains, and digitally empowered customers directing their own shopping journeys. While many retailers continue to keep brick-and-mortar and digital interactions separate, the leaders know that all channels must be seamlessly integrated to help ensure success — including optimizing logistics, managing or sourcing online inventory, striking the right balance between customer satisfaction and profitable inventory, and space optimization in the store itself.  FICO® Optimization Solutions for Retail has helped businesses:

  • Generate 90 million predictive models from 380 billion possible offers, choose best 20 for each customer
  • Increase response rates by 200%
  • Optimize up to hundreds of millions of SKU-level inventory decisions every day
  • Increase decision accuracy by between 5% and 40%
  • Reduce develop/deploy time by 80%

Make faster, smarter decisions

across the entire retail life cycle

FICO® Optimization Solutions for Retail helps businesses substantially reduce the time to develop and deploy optimized retail solutions by as much as 80%, while providing dashboards and other visualization tools for easy reporting and additional insights.

Real retailers, real results


Whether you are seeking to expand organically or through acquisition, drive a

wedge between you and your competitors, or simply seek new opportunities to

balance growth and cost, FICO can help. Available on-premises or in the cloud, FICO® Optimization Solutions for Retail delivers rapid, easy and powerful creation, customization, deployment and management of optimized applications for retailers of all sizes.

Optimize the full range of your retail business


The solution’s easy-to-learn, browser-based user interface can have you up and running in minutes. Its industry-leading visualization and reporting capabilities can help your analysts and other users quickly and easily compare results, show progress and review historical or other data. The analytic tool import/export ability helps maximize collaboration, as models created by research teams can easily be consumed by the solution and immediately used by business analysts.

CASE STUDY: Leading Grocery Chain

A leading grocer launched a new, differentiated loyalty program in a very saturated market. For more than nine million members, they turned to a solution using FICO optimization to deliver a unique set of relevant offers every week, with the heavy lifting provided by more than 4,000 time-to-event (TTE) predictive models, generated and updated every four months by a FICO-built analytic “factory.” As shown in the graphic right, each TTE model predicts the propensity of a customer to purchase a particular product — within a specific timeframe.


Together these models output over 90 million offers per week — metrics that tell the grocer the likelihood, for every loyalty member, of buying each of some 60,000 products in the next seven days. From those 90 million, FICO’s optimization engine returns a maximum of 20 offers per customer, while adhering to the grocer’s constraints that include concentrating a significant amount of incentive investment on its best customers.


Other constraints are imposed by company investment targets and vendor trade marketing budgets. Optimization also enables the grocer to balance relevancy — a key driver for share-of-wallet growth — with other offer features that drive incremental sales. The bottom line: 200% growth in response rates, with increased basket size and overall customer satisfaction and loyalty to the brand.

Retail Figure.PNG

Areas covered by FICO Optimization Solutions for Retail include:

  • Pricing
  • Sourcing
  • Purchasing
  • Marketing Mix
  • Promotions
  • Channel/Media Mix
  • On-boarding
  • Marketing Offer
  • Assortments
  • Availability
  • Returns
  • Store Location
  • Layout/Spacing
  • Stocking
  • Picking
  • Customer Lifecycle
  • Basket Analysis
  • Loyalty Programs
  • Inventory Planning
  • Capacity Planning
  • Logistics Planning
  • Digital/B&M Mix
For more information on how one grocer used FICO optimization to supercharge their loyalty program through true offer personalization, download the case study.