1 in 2 Aussies shop using loyalty programs as a result of the cost of living crisis
With the cost of living in Australia continuing to rise, more consumers are looking for ways to stretch their budgets. One popular strategy is participating in loyalty programs, with research showing that nearly half of all Australians use these programs to save money. While large retailers have long benefited from customer rewards schemes, small businesses can also leverage loyalty programs to increase sales, build customer relationships, and stay competitive in a challenging market.
The benefits for your small business
Small businesses often face tough competition from major retailers, but loyalty programs can help level the playing field. Here are the benefits for your biz:

Encourage repeat business
Customers are more likely to return when they know they’re earning rewards. Whether it’s a coffee shop offering a free drink after ten purchases or a boutique providing discounts for repeat buyers, loyalty programs give customers a reason to come back instead of opting for big chains.
Boost customer engagement
Loyalty programs help small businesses connect with their customers in meaningful ways. By tracking customer purchases and preferences, businesses can offer personalised deals, exclusive discounts, or birthday rewards, creating a stronger emotional connection with their brand.
Increase sales without offering huge discounts
Rather than relying on constant price cuts, loyalty programs allow businesses to reward frequent customers while maintaining profitability. Offering a free product after multiple purchases, or a promo-code that offers 10% off when spending over $100, encourages spending without eroding margins.
Word-of-mouth marketing
Happy customers love sharing good deals. A well-structured loyalty program can encourage word-of-mouth marketing, leading to organic customer growth. Some businesses even introduce referral bonuses where existing customers get extra points for bringing in new customers.
Collect valuable customer data
Loyalty programs provide insights into customer buying habits, allowing businesses to tailor promotions and improve their offerings. Understanding what customers want can help small businesses optimise stock, plan marketing campaigns, and improve overall service.
Rewarding your customer's loyalty in Little Big Shop
When you’re subscribed to a “Big” plan, you can provide exclusive memberships to your most loyal customers:
- Member-only pricing: This includes discounts on select items, exclusive access to certain products, for those you assign with a member number.
- Loyalty program: Members can progress through different membership levels, unlocking further discounts and special offers as they move up. This structure helps businesses incentivise repeat purchases while providing customers with tangible rewards for their loyalty.
If you’re subscribed to “Startup” or “Little” you can still reward your most loyal customers with promo codes. Such codes can be shared via email or social media, to encourage more sales on your Little Big Shop.
As the cost of living in Australia continues to put pressure on household budgets, customers are actively seeking ways to get more value from their purchases. For small businesses, loyalty programs offer a cost-effective way to increase retention, boost sales and build a strong community of repeat customers.
To discover more about Little Big Shop and building a well-designed loyalty program through memberships, click here.