The Welshman is close to a first-team comeback after spending seven weeks on the sidelines with a hamstring problem suffered against Notts County in the Capital One Cup.
During his enforced lay-off, Jordan Henderson has established himself as a regular in Brendan Rodgers' line-up, while attacker Victor Moses joined the club on loan.
Those developments followed the signing of Luis Alberto in the summer, all of which has increased the level of competition in Allen's area of the pitch - something the No.24 welcomes.
He told Liverpoolfc.com: "When you sign for a club like Liverpool, that's the first thing you realise. When you sign for a club like this, you can't rest on any laurels.
"There are people who will fight for your place inside the club and also outside the club; there are so many people who want to join a massive club like this.
"You've always got to make sure that you give your best every single day to stake a claim. Nothing has changed there, that's the same as far as anyone is concerned.
"The team's goal is an obvious one - this is a club with such a rich history and Champions League football is what every supporter wants to see this club competing in.
"That's the goal for the team. For me, the big one is to get into the team and stay there, and play consistently well. And try to offer as much as I can to help the team get into those top places."
Rodgers has also switched to a 3-5-2 formation since Allen last featured in the team, opting for the alternative system in each of the Reds' three most recent fixtures.
The 23-year-old admits he has little previous experience of the set-up but is happy to embrace a style which has been rewarded with consecutive victories over Sunderland and Crystal Palace.
"I haven't got great experience of playing it, to be honest, but you can see how well it has worked for the team," he added.
"We've got the players that can adapt to many different formations, which is a great thing.
"At the moment, to have Daniel Sturridge and Luis Suarez both up top, we look a massive threat at all times during the games.
"It's a formation that's working great for us at the moment. There are a couple of slots in midfield, where there is a lot of competition for it; my job now is to work as hard as I can to try to get one."