Shift to "Intimate" Customer Relationships Will Drive Investment in Decision Automation and Analytics, According to Independent Survey Commissioned by FICO

SAN JOSE, Calif. – January 15, 2013 – FICO (NYSE: FICO), the leading provider of predictive analytics and decision management technology, today announced the results of a survey it commissioned from Forrester Consulting to better understand how companies are investing in improved customer interactions. The survey found that a major shift is underway in how enterprises interact with their customers, yet the respondents see gaps in their ability to understand customer behavior and put these insights to work.

For the study, "The Era of Intimate Customer Decisioning is at Hand," Forrester surveyed 266 decision-makers from enterprises with USD 1 billion or more in annual revenue. According to respondents, the biggest challenge of the next two years will involve advancing from decisions based on big customer segments to decisions targeted to microsegments and ultimately to segments of one. Meeting this challenge will require new customer analysis techniques and automated decision-making.

"Customer experience matters - it is how enterprises will differentiate themselves and compete in the 'instant economy,' " said Stuart Wells, chief technology officer at FICO. "It is no longer adequate to blindly blast marketing messages to millions of consumers, or to take months to incorporate insights. Customers expect instant, relevant interactions from the companies they do business with, or else they will take their business elsewhere. This is driving a wave of investment in not only analytics but the decision management platforms needed to foster an intimate customer relationship."

Strikingly, more than half of enterprises surveyed take at least three months to change their operational procedures and systems to incorporate new insights about customers gained from analysis. At the same time, only 20 percent are able to target a message to an individual consumer today. As a result, enterprises are prioritizing decision automation technology to enable them to react faster to customer life-changes (such as a marriage, a new job, or the birth of a child), increase profitability, make better decisions, and increase customer relevance in 2013.

Fifty percent of the respondents are investing in decision automation technology today, and an additional 48 percent plan to adopt it in the next 12 months. The survey also found a rising investment in analytic and decision modeling tools (94 percent of companies surveyed will adopt within the next 12 months), decision optimization (88 percent) and predictive analytics (86 percent).

Based on these investments, 60 percent of respondents believe that by 2015 their organizations will move to at least monthly revisions of operational procedures and systems to incorporate new insights about customers gained from analysis. The survey also found that, by 2015, 84 percent of respondents plan to use data analysis to inform at least half of their customer decisions, and over half plan to target messages to individual consumers.

Methodology
Forrester conducted an online survey of 266 retail, high-tech, insurance, banking and healthcare organizations in Brazil, Canada, China, Germany, India, South Korea, the UK and the US to evaluate the challenges that businesses face in using IT to improve their interactions with customers. Survey participants included decision-makers in the executive suite, application development, marketing, customer experience, business intelligence, master data management, eCommerce and eBusiness. The study began in July 2012 and was completed in August 2012.

Sobre FICO
FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company’s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO’s innovative solutions include the FICO^® Score — the standard measure of consumer credit risk in the United States — along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world’s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com.

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Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2012. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

FICO and “Make every decision count” are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.