7 Loyalty Programs That Work in 2025 (With Fresh Data and Australian Examples)

There’s nothing like the rush of winning new business. For a long time, marketing departments poured energy into messaging and product positioning to attract new people to their brands. However, while creating new sales leads will always be part of the job, it’s equally important to convert existing customers into repeat customers.

We found that 84% of loyalty program members say these programs make them more likely to repurchase. That’s why investing in customer loyalty programmes and the platforms to support them is appealing to businesses looking to grow.

In this article, we’ll explore how these loyalty programs work and the current trends shaping 2025, along with real examples of Australian businesses that are using them. We'll also share insights from our latest Connected Shoppers Report, Sixth Edition , which encompasses research from 8,350 shoppers and 1,700 retail decision-makers worldwide.

1. What is a customer loyalty program?
2. How do loyalty programs work?
3. Current loyalty program trends
4. 7 standout loyalty programs in Australia
5. The benefits of customer loyalty programs
6. How do you start a customer loyalty program?
7. How to build loyalty in every phase of the customer journey
8. Turning loyalty into long-term growth

A customer loyalty program is a marketing strategy designed to retain customers and increase repeat sales by offering rewards to those who keep buying from a brand.

These programs often include a point system, discounts, exclusive offers, or any other perks that give customers a reason to stay engaged and continue purchasing from your brand.

They can help businesses build stronger relationships with their most valued customers, boost their lifetime value, and stand out in competitive markets.

For example, if your product is priced the same as a competitor’s (or even slightly higher), a rewards program could tip the decision in your favour. Eighty-eight per cent of customers say they want personalised offers and experiences, and are more likely to choose the brand that offers them some added value.

Considering that 74% of shoppers switched brands in the past year, with Gen Z and Millennials switching 1.3 times more often than Baby Boomers, brands now need to work harder to earn repeat business.

Loyalty programs are one way businesses are rising to that challenge. Today, 77% of shoppers belong to at least one program. If you're thinking about launching your own, here's how they typically work:

• Enrollment: Customers join the program online, through an app, or in-store, often in exchange for a small incentive like a sign-up discount.
• Earning rewards: Members earn points or perks by making purchases or engaging with the brand, such as writing reviews or referring friends.
• Tracking activity: Progress is tracked through an online dashboard or mobile app, giving customers visibility into their points and rewards.
• Redeeming rewards: Points can be exchanged for discounts, free products, early access, or exclusive offers.
• Optimisation: Brands use data and AI to personalise rewards and keep customers coming back. Currently, 84% of retailers say that AI is restructuring how they operate, including how they manage their loyalty programs.

Today’s most effective programs are more personalised, connected, and aligned with what each individual customer actually values. Here are some of the top trends we found are shaping the programs businesses are offering in 2025.

• Hyper-personalisation: AI-driven offers tailored to each customer’s behaviour and preferences. For example, a supermarket's online platform might offer deals based on past purchases.
• Experiential rewards: Unique experiences can work over discounts, especially for Gen Z shoppers who are 3x more likely than Baby Boomers to value things like in-store classes or events.

• Omnichannel integration: A seamless experience across apps, in-store, and online. For example, points earned from in-store purchases automatically sync with your online profile.
• Gamification: Interactive, game-like elements that boost engagement. This could look like a coffee chain rewarding customers for completing a digital punch card.
• Sustainability and ethical loyalty: Consumers want brands that align with their values and look for programs that reflect social and environmental values. For example, customers might earn rewards for bringing their package back in-store for recycling.

We found that, in 2025, the average shopper now belongs to four programs, with the most popular including points-based offers, partner points, free shipping, and discounted services.

With that in mind, if your brand doesn’t offer a way to reward loyal customers, there’s a good chance they’ll take their business to one that does. Starting a program now can help you stay competitive, drive repeat purchases, and create more value for your top customers.

For more insights and practical strategies to get started, watch our loyalty strategy webinar.

To inspire your own strategy, here are seven successful Australian loyalty programs.

1. Flybuys: A popular points-based program with lots of brand partnerships.
2. Everyday Rewards (Woolworths): A connected in-store and online experience.
3. Qantas Frequent Flyer: A tiered and experience-led travel rewards program.
4. Velocity Frequent Flyer (Virgin Australia): Airline rewards with partner flexibility.
5. MECCA Beauty Loop: Beauty rewards with personalised perks and exclusive rewards.
6. Myer One: The retail-focused program with amount spent rewards.
7. CommBank Awards: A flexible points program tied to everyday banking.

Now, let’s go into a little more detail and examine how each of these reward programs works and what has made them so effective.

Flybuys is one of the most widely used loyalty programs in Australia. It allows members to earn points across a network of partner brands like Coles, Kmart, and Target. With so many ways to earn and redeem, it’s a strong example of how partner networks and flexible rewards can drive long-term engagement.

Everyday Rewards connects digital and physical shopping by giving customers points for every dollar spent, both online and in-store. The program uses customer data to deliver highly personalised offers based on shopping habits, making it a strong example of AI-driven personalisation in action.

The Qantas Frequent Flyer program is built around offering travel and experiences in exchange for points. Members earn points through flights, hotels, and everyday spending with partner brands, and can redeem them for upgrades, lounge access, or exclusive deals. It’s designed to reward loyalty with the kind of comfort and access that frequent travellers value.

Velocity allows members to earn and redeem points not only on flights, but also through their partners in fuel, hotels, and everyday purchases. It offers a tier system and bonus challenges that bring in gamified elements to keep members engaged and motivate them to reach the next level.

MECCA has a loyal and engaged customer base that expects a personalised experience. One of MECCA’s goals in transforming has been to better harness customer data to tailor each interaction, whether it’s an email, a conversation with the Customer Care team, or a visit to the store or website. This level of personalisation keeps customers coming back time and time again.

Beauty Loop is built for MECCA’s loyal beauty customers. Members earn points from their purchases and get access to exclusive giveaways, experiences, and rewards, including Beauty Loop Boxes, must-have favourites, and access to members-only events.

“Our vision for Beauty Loop has always been to reward and surprise our loyal customers with the most amazing experiences and products. Implementing Loyalty Management means we now have the strong foundations for our plans for the future so that we can remain as Australia's favourite loyalty program,” said Rosie McFarlane, Head of Loyalty, MECCA.

Myer One rewards customers with quarterly vouchers based on how much they spend in their stores. It also offers members access to exclusive deals, both online and in-store. The program also uses past purchase behaviour to tailor what is offered to each customer.

CommBank Awards links to eligible credit cards, giving customers points on everyday spending that can be redeemed across tech, travel, gift cards, and more. The flexibility and integration with customers' regular financial activity show how loyalty can be embedded within the customer journey.

Loyalty programs are a way to turn casual buyers into long-term brand advocates. When customers feel recognised and rewarded, they’re more likely to come back, spend more, and share their experience with others.

Here's a look at all the benefits of customer loyalty programs for both businesses and consumers.

• Tangible rewards: Discounts, free products, and exclusive offers.
• Recognition: Feeling valued and appreciated through status or perks.
• Personalisation: Tailored rewards and offers based on preferences.
• Exclusive access: Early entry to sales, events, or product launches.

• Better customer retention: Customers are more likely to stay loyal when they feel engaged and rewarded.
• More referrals: Happy members often recommend the program to friends and family.
• Cost efficiency: Retaining loyal customers is more cost-effective than acquiring new ones.
• User-generated content: Programmes that encourage happy customers to publish reviews and ratings on websites and social media create authentic ambassadors for your brand.
• Valuable data: Loyalty programs provide insight into behaviour, helping improve all your targeting and messaging

Here are some steps to help your organisation begin its own customer loyalty programme.

Allowing frequent customers to earn points that convert into rewards is the basic building block of a loyalty programme. It’s important to make the relationship between points and tangible rewards as simple and intuitive as possible.

The name of your loyalty programme should stand out from the crowd to draw interest. For example, Sephora’s Beauty Insider Programme took a clever spin on VIP; they include a level named VIB (Very Important Beauty Insider).

A tiered loyalty programme typically offers a small incentive for making an initial purchase. The value of the rewards increases as the customer moves up the loyalty ladder. This type of programme tends to work better for higher-commitment and price-point businesses such as airlines, hotels and insurance companies.

It can be a good strategy to ask customers to pay a one-time fee that allows them to bypass common purchase barriers later on. Amazon Prime’s upfront membership fee, for example, allows subscribers to make frequent, repeat purchases without worrying about inconveniences such as taxes and delivery.

Think of other companies that would be a good fit. For example, if you sell hiking backpacks, consider forming a loyalty programme with a maker of hiking boots. When customers receive value that’s relevant to them but goes beyond what your company alone can offer, it shows that your business really cares and understands their needs.

Loyalty rewards don’t always need to be discounts. Think tickets to events, gift subscriptions, or charity donations. You can also align rewards with your brand value, as many customers are more loyal to brands that support causes they care about.

Loyalty doesn’t just come from rewards; it’s shaped by every interaction a customer has with your brand. From first contact to long-term engagement, each step is an opportunity to build trust and value.

Here’s how to strengthen loyalty across the customer journey:

• Offer consistent service across channels: Make it easy for customers to reach you through contact centres, social media, live chat, or in-store, and ensure the experience feels connected.
• Personalise the experience: Use customer data to tailor offers, emails, and support. This shows your customers that you remember their preferences and value their history with your brand.
• Keep rewards going after checkout: Give customers ongoing chances to earn and redeem points, so loyalty feels like part of the journey, not simply a one-time perk.
• Recognise key milestones: Celebrate customer anniversaries, birthdays, or major spend milestones to show appreciation and keep them engaged.
• Use AI to enhance support: Shoppers are most interested in AI agents that help optimise loyalty points, complete returns, and answer service questions. Use this to strengthen your service for loyal customers.

When loyalty is embedded into the full experience, customers are more likely to stick with your brand in the long run.

Customer loyalty in 2025 is powered by personalisation, seamless experiences, and rewards that reflect what shoppers truly value. From exclusive perks to values-based programs, the best strategies use data and AI to deliver smarter offers, build trust, and strengthen relationships at every stage. When done well, loyalty can be a key driver of long-term growth.

Ready to elevate your loyalty strategy? Discover what’s possible with Salesforce Marketing Cloud.

For more insights on how shopper expectations are evolving, download our latest Connected Shoppers Report .