Loyalty programs have become a cornerstone for retailers in Australia. With the release of the "For Love or Money" latest 2025 edition, you can access the latest insights on loyalty initiatives. This article distils the key findings and practical, actionable advice. You can get a copy here of the report; you will need to pay for it, but it comes with a free executive summary of the report, which you can download for free. If you are interested in loyalty programs for your shop, it's well worth a read.
"A loyalty program, also known as a rewards program, is a marketing strategy designed to encourage customers to make repeat purchases by offering them discounts, rewards, or other incentives. Businesses implement these programs to foster customer retention, boost customer engagement, and ultimately increase profitability."
Why Loyalty Programs Matter for Australian Retailers
Well-designed loyalty programs help you increase your business. According to this loyalty research, the number of Australians participating in loyalty programs is rising.
During COVID, you can see that it dropped, but now it is growing steadily.
Key Insights from this report
Customer loyalty id not just discounts.
- Consumers appreciate programs that are easy to join, understand, and use.
- Personalisation fosters engagement.
- Value is essential, but it doesn't only mean money.
Designing a Loyalty Program That Works
Our POS systems, tailored for Australian SMBs, include free and built-in loyalty modules, making it easier than ever for you to implement and manage these programs without any upfront investment.
A successful loyalty program for your shop does not require a large budget or complex technology.
You need to concentrate on a few points of what the report calls the nine currencies. Very few retailers can offer all of them, so you need to focus on two or three that your business can deliver.
The Nine "Currencies"
They are what people want. Don't worry if you cannot provide some of these; few can offer all of them:
Money
Not surprisingly, many are looking at discounts, points, etc.
Memory
Experiences that stick in your customers' minds: I have a customer whose wife is an art teacher, so he runs a free art course. This experience sticks in his customers' minds.
Time
Making things quicker or easier, e.g., offering digital receipts. Something that saves them time.
Me (Personalisation)
People want to feel recognised as individuals, so they may request that you send a birthday card or offer or suggest products based on past purchases.
Flexibility (Choice)
Customers want to choose their reward. Instead of offering 100 points = $1, offer a scale, say 500 points = $7.50, or a free birthday card at 400 points.
Us (Community)
Make an offer for a local school, organisation, business, etc. members to join your loyalty program. People like to be given the option to donate their rewards.
Joy
Offer an unexpected delight, a free treat, or say thanks with a handwritten note.
Access
I think it's very difficult to implement exclusive perks, such as early access to sales or new products for loyalty members.
Status
People want to feel special or recognised.
Next Steps for Your Shop
- Your loyalty program doesn't need a big budget or advanced tech to work. Here's how to keep it simple and effective: Our POS system has free software for running a loyalty program.
- Pick two or three "currencies" to focus on.** Money, memory, and joy are great starting points.
- Keep it simple.
- Promote your program. There is no point in having something that people do not know about.
- I will make some key performance indicators (KPIs) to measure effectiveness. The ones I suggest are repeat purchase rate, average transaction value, program participation rates, etc.
- Get customer feedback as it provides valuable insights for your loyalty program.
If you'd like help setting up a loyalty program, contact us for a chat.
Written by:
Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
