# LCM-Promo: An LLM-Based Uplift Model for Promotion Allocation

DevFeed: [LCM-Promo: An LLM-Based Uplift Model for Promotion Allocation](<https://devfeed.tech/articles/lcm-promo-an-llm-based-uplift-model-for-promotion-allocation-104104.md>)

Original publisher: [Read original article](<https://arxiv.org/abs/2610.37570>)

Author: Nesta Midavaine, Floris Fok, Paulo Mendes, Joao Silva, \\"Onder Aka\\c{c}{\\i}k, Dimas Lima, Z\\"ulk\\"uf Gen\\c{c}

Published: 2026-10-28T04:00:00Z

Content type: article

Language: en

Sources: [arXiv: Machine Learning](<https://devfeed.tech/sources/arxiv-machine-learning.md>)

Topics: [Large Language Model](<https://devfeed.tech/topics/llm.md>), [Fine-tuning](<https://devfeed.tech/topics/fine-tuning.md>)

Tags: [abstract](<https://devfeed.tech/tags/abstract.md>), [arxiv](<https://devfeed.tech/tags/arxiv.md>), [based](<https://devfeed.tech/tags/based.md>), [churn](<https://devfeed.tech/tags/churn.md>), [commerce](<https://devfeed.tech/tags/commerce.md>), [context](<https://devfeed.tech/tags/context.md>), [conversion](<https://devfeed.tech/tags/conversion.md>), [cost](<https://devfeed.tech/tags/cost.md>), [cs-ir](<https://devfeed.tech/tags/cs-ir.md>), [cs-lg](<https://devfeed.tech/tags/cs-lg.md>), [data](<https://devfeed.tech/tags/data.md>), [delivery](<https://devfeed.tech/tags/delivery.md>), [large](<https://devfeed.tech/tags/large.md>), [llm](<https://devfeed.tech/tags/llm.md>), [logs](<https://devfeed.tech/tags/logs.md>), [model](<https://devfeed.tech/tags/model.md>), [production](<https://devfeed.tech/tags/production.md>), [promotion](<https://devfeed.tech/tags/promotion.md>), [shift](<https://devfeed.tech/tags/shift.md>), [test](<https://devfeed.tech/tags/test.md>), [token](<https://devfeed.tech/tags/token.md>), [user](<https://devfeed.tech/tags/user.md>)

## AI overview

LCM-Promo is a task-specific Large Commerce Model fine-tuned on transactional data to predict user intent and promotion response. It learns monotonic promotion-response curves from production logs by interpreting single-token outputs as conversion-threshold probabilities and conditioning on session context, including day and delivery shift. In a production A/B test for churn reactivation, it increased conversion by 1% and reduced promotion cost by 6% compared with the Segment-EMA production baseline.

## Source excerpt

arXiv:2610.37570v1 Announce Type: new Abstract: We present LCM-Promo, an LLM-based uplift model for promotion allocation. LCM-Promo is a task-specific Large Commerce Model (LCM): a finetuned LLM trained on transactional commerce data to predict user intent and promotion response. It learns monotonic promotion-response curves from production logs by interpreting single-token outputs as conversion-threshold probabilities, while conditioning on session context such as day and delivery shift. In a production A/B test on churn reactivation, LCM-Promo increased conversion by 1% and reduced promotion cost by 6% relative to the Segment-EMA production baseline.