How To Create A Successful Loyalty Program In Australia

November 1, 2023


In the contemporary business environment, attracting and retaining customers is more challenging than ever before. In a developed country like Australia, where competition is extremely high and customers have a plethora of options, focusing on customer retention is all the more important.

How to create a successful loyalty program in austrralia

Are you a manufacturer or a business owner in Australia who is looking to retain a majority of your existing customers? If the answer to the question is a resounding “Yes,” then designing and running a successful loyalty program can make all the difference.

As per the latest study, more than 62 percent of Australian customers use a loyalty program regularly (with significant industry variation). That’s a good number and it also means that a majority of customers expect brands to run loyalty programs.

This blog post discusses the key steps to creating a successful loyalty program tailored to the Australian market. So let’s dive right into the article without wasting any time and find out what are those steps.

1. Understand your target audience

To create a successful loyalty program in Australia, you need to determine your target customers and what motivates them.

A majority of Australians are not price-conscious but they value quality, utility, and experiences more than anything. So while creating your loyalty program, you must take that into account.

2. Choose the right type of loyalty program

There are various types of loyalty programs such as:

  • Points-based loyalty programs
  • Tiered loyalty programs
  • Cashback loyalty programs
  • Value-based loyalty programs

Each has its advantages and disadvantages. Every one of them is suited to different businesses and customer bases. So you must ensure that you handpick the right type of loyalty program that aligns with your business goals.

3. Offer attractive rewards

We already know that a majority of Australians, especially the younger population, value and prefer experiential and non-transactional over monetary rewards. So rewards such as cashbacks, discounts, free products or services, and other transactional ones are not very popular in Australia.

Popular rewards include early access to sales, exclusive member-only events, and tiered benefits, to name a few. Ensure that the rewards provide genuine value to your target customers.

4. Make it user-friendly

Until and unless a loyalty program is user-friendly, it cannot provide the desired customer experience, which matters a lot in Australia. That’s because as per a report by EY, Australian businesses lose $720 per negative customer experience. What’s more disturbing is that it amounts to $122 billion every year!

To create a user-friendly loyalty program, make sure customers can track their progress, receive personalized offers, and redeem rewards.

5. Deliver exceptional customer service

Did you know that seven out of every ten Australians believe that a business is as good (or bad) as its customer service? Excellent customer service is critical to building loyalty in Australia and you can never go wrong by providing high-quality service to your loyalty program members.

Make sure that your customer service team is empathetic, responsive, and knowledgeable. As per recent study, 84 percent of Australians want customer service executives to listen to them. So make sure that your agents give your customers a patient hearing and make them feel valued.

6. Analyze data and tailor offers

As per a study by Adobe, two-thirds of Australians expect personalization for sharing data with brands. Now that customers have provided you with all relevant data you must make sure to leverage the data to tailor offers and rewards for them.

When it comes to customizing offers, make sure that you offer a variety of rewards to choose from as that would make customers feel that they have plenty of choices. That would also make customers feel that providing data was totally worth it.

7. Measure and improve

Evaluate the performance of your loyalty program regularly. Monitor key metrics of your loyalty program such as customer retention, engagement, and ROI. Use the data to make necessary improvements.

Adjust and iterate your loyalty program from time to time based on customer feedback and market trends.


Creating a successful loyalty program in Australia can be extremely easy when you have a partner with the right expertise, years of experience, and a proven track record. As a business owner and manufacturer, you would be better off by joining hands with a reliable and reputable loyalty solution provider.


Urban Splatter

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