The Buy Broseley loyalty card scheme was launched this week, with almost all the stores on the high street reported to be taking part.
Caroline Bagnall, a town and Shropshire councillor for Broseley said: "Broseley is proud of the range of stores that it offers to shoppers.
"The friendly staff, along with free parking in the town, make it an attractive place to shop.
"However, the cost of living crisis, a recent road closure and a temporary one way system have made times hard, so the town council is supporting a loyalty card scheme which will operate throughout the High Street, in an effort to encourage people to shop locally."
Councillor Bagnall said shoppers simply pick up a card from a participating store and, each time they visit one of the shops to make a purchase, they receive a stamp on their card.
Once 10 stamps have been earned, they enter their contact details on the card and hand it in to the store.
Once a month, the completed cards are collected and they are then entered into a prize draw. The prizes are £20, £10 or £5 in vouchers to spend on the High Street.
"That way, the money goes back into our town,” said Councillor Bagnall.
She added that she was keen for the scheme to cost nothing traders – especially in these challenging times, and funding has been found to support the six month trial.
However, some shops are already keen to offer extra prizes for the draw.
The councillor added: “We hope that this scheme will encourage people to think twice before shopping out of town.
"By supporting our local shops and stores we can help to preserve our High Street.
"Broseley is a wonderful community, but without the support of shoppers, our High Street – the very heart of our town, will die. We cannot just sit back and let that happen!”
Loyalty cards are available to all those visiting the High Street shops, hairdressers and food outlets.
Broseley Town Council agreed at its meeting on January 10 that the scheme would be advertised via Facebook and within the Spring edition of town talk with a photograph of the first prize winner.
Councillor Bagnall reported that letters and posters were being distributed to shops along with loyalty cards and stamps.
She told the meeting: "We hope that this will encourage residents to shop locally. The new hardware store had offered to contribute towards the prize, which is really kind."