Is your loyalty program rewarding the wrong behaviour?

Today, we are looking at the gamification strategy used by haircare brand OUAI and how they are shifting their loyalty programs away from purely rewarding spend, and moving toward rewarding genuine engagement.

Before that, a quick heads up: we only have a handful of tickets remaining for our London summit next month.

Connect LDN: Last call for tickets

15th October 2026 | London | 9AM - 5PM

We are officially in the final countdown for Connect LDN, and we only have a few complimentary seats left before we close registration.

We are bringing together a hand-picked group of founders and senior operators for an intensive day of strategy, specifically focused on navigating the complexities of Q4 and setting up for a profitable 2027.

Here is a reminder of what you get:

• Lightning Panels: Unfiltered strategies from leaders at Saucony, Escentual.com, MINISO UK, and more.
• Peer Networking: Connect directly with other e-commerce founders navigating the same bottlenecks.
• Premium Hospitality: Breakfast, lunch, and evening drinks are entirely on us.

Once these final tickets are gone, the guest list is locked. Grab yours here.

Your loyalty program is rewarding the wrong thing

If a customer only returns because they finally accumulated enough points to unlock a £10 discount, are they actually loyal to the brand, or just loyal to the savings?

The traditional "earn and burn" points model is expensive for the brand, and uninspiring for the consumer. At our recent panels, a massive shift has become clear: modern loyalty isn't about rewarding spend, it is about rewarding engagement.

A great example of this pivot is the haircare brand QUAI. Instead of just handing out points at checkout, they have successfully gamified the relationship.

Here is how you can adapt their approach to move your community away from discount-hunting and toward genuine brand affinity:

1. Reward the actions that grow your brand

Ouai doesn't just give points for buying shampoo. They give points for actions that benefit the brand's ecosystem: reading a blog post, taking a hair quiz, leaving a detailed review, or following them on social media.

They are rewarding the behaviours that lead to long-term retention and organic marketing, rather than just taxing their own profit margin on a sale.

2. Replace blanket discounts with exclusive access

When a customer accumulates points, the instinct is to let them trade it for money off their next cart. But true community members often value access over a minor discount.

Try introducing rewards that cost you very little but feel highly exclusive. Give your top tier early access to a new product drop, an exclusive shade, or a piece of branded merch that isn't available for sale. Exclusivity builds far deeper emotional loyalty than a 10% off code.

3. Build a sense of progression

Gamification works because it taps into the human desire for progression. Instead of a flat points system, create clear, attainable tiers. When a customer knows they are only two purchases (or three reviews) away from unlocking "VIP" status or free shipping for a year, they are much more likely to consolidate their category spending with you rather than shopping around.

The Takeaway

Review your loyalty app settings this week. If 100% of your rewards are tied strictly to revenue, you are missing an opportunity to build a community.

Start small by adding point values to two non-purchase actions, like completing a preference quiz or joining your SMS list. Reward the relationship, and the revenue usually follows.

Podcast: Scaling Avery Row through Product Focus

Can you scale a premium brand without aggressive discounting?

In our latest episode, we sit down with the founder of Avery Row to discuss the reality of building an organic, highly engaged community in the competitive nursery and lifestyle space.

We break down:

• How they built deep trust with parents without massive ad budgets.
• How to maintain premium positioning and resist the urge to discount during peak promotional seasons.

If you are trying to build a brand that relies on lifetime value rather than cheap acquisition, this is a must-listen.

Listen on Spotify

In Other News…

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What this means for you: Social commerce is now a primary sales channel. With major heritage brands normalising in-app purchasing, consumer expectations for frictionless buying are rising.

Shein profits plunge 67% in Europe: Fast-fashion giant Shein reported a 67% drop in Q2 profits, driven by a slump in European sales following price hikes and surging air freight costs linked to Middle East tensions.

What this means for you: The era of ultra-cheap, air-freighted cross-border models is facing severe headwinds from new border taxes and global logistics volatility.