Product Spotlight: Programmatic Loyalty

Marketers today face increasing pressure to stretch every ad dollar while proving strong return on ad spend (ROAS). With acquisition costs rising in channels like search and social – and brands competing for the same shoppers – profitable customer acquisition is more challenging than ever. At the same time, the demand for measurable, efficient marketing strategies has never been higher.

To thrive in this landscape, brands need a more strategic approach — one that aligns marketing investment with shopper behavior rather than relying on broad, undifferentiated tactics. Programmatic Loyalty offers a data-driven solution to today’s marketing challenges, using AI and first-party data to achieve predictable, guaranteed ROAS in an increasingly complex digital landscape.

How Programmatic Loyalty Works

Programmatic Loyalty leverages AI technology and Rakuten’s first-party data to connect brands with the right audience through effective, personalized Cash Back offers. Instead of a static, one-size-fits-all approach, the system tailors Cash Back rates for different audience segments based on shopper behavior, sales trends, and ongoing campaign performance.

Here’s how it works.

1. It starts with data.Before a campaign launches, the system analyzes historical sales, shopper behavior trends, historical sales and spend levels, current sales trends, seasonality, cash back elevations and elasticity, promotional calendars, media and promotion participation. This analysis forecasts various spend scenarios:

• • Lower budget, lower cost per activation → Higher ROAS, but lower total estimated sales volume
  • Higher budget, higher cost per activation → Lower ROAS, but greater estimated total sales

2. Brands and Rakuten align on a goal.We set an estimated gross merchandise value (GMV) target and a guaranteed ROAS to hit each month.

3. Programmatic optimization kicks in.Once the campaign is live, Cash Back rates and media placements adjust dynamically to meet the ROAS goal:

• If sales need acceleration to hit the ROAS goal, the system increases Cash Back rates, exposing a higher rate to a broader audience to drive conversions.
• If the campaign is pacing ahead of its ROAS goal, the system lowers Cash Back rates, optimizing spend and maintaining efficiency.

Programmatic Loyalty empowers brands to meet today’s value-conscious shoppers where they’re at

Programmatic Loyalty ensures brands engage shoppers at the right time with the right reward. This personalized approach ensures brands don’t over-discount to shoppers who need less incentive while effectively motivating new or lapsed customers with targeted offers that resonate. By dynamically tailoring incentives, brands can foster stronger customer relationships, building greater loyalty and lifetime value over time.

The results: Home & Garden brand sees YoY growth

Programmatic Loyalty has already demonstrated strong results for participating brands. One Home & Garden retailer achieved a return to positive year-over-year growth across key metrics in H2 2024, including an increase in sales (reversing a previous YoY decline), an 81% increase in trips, and a 5% increase in average order value — all while consistently meeting its monthly ROAS goals. For more details, read the full case study here.

Take control of your ROAS performance

Navigating rising ad costs and evolving privacy regulations demands smart, data-driven strategies to maximize ROAS. Programmatic Loyalty provides precisely that: a smarter, more effective approach to performance marketing. By aligning marketing investments with customer behavior, brands can maintain efficiency, drive incremental growth, and confidently achieve their business objectives.

Get in touch learn more about Programmatic Loyalty.