Hugo Boss Launches Customer Loyalty Program in Bid to Enhance Engagement – But is it a Token gesture?

Fashion pioneer Hugo Boss has announced the release of its new customer loyalty program, promising its members “a new world of engagement.”

Christened Hugo Boss XP, the company has confirmed that its latest loyalty program will be tied to the Hugo Boss customer app, where it will provide users with a range of loyalty features, including levels and points.

Slated for an initial UK release in June, the fashion behemoth has described the program as part of its “ambitious multiyear roadmap” to boost engagement by focusing on customer experience and lifetime value.

Arguably, the standout feature of the new program is its blockchain and Web3 capabilities. Hugo Boss XP will fully embrace digital tokens, allowing users to collect and redeem NFTs, with tokens also acting as “keys to unlock” exclusive products, unique brand experiences, and additional offers.

While not scheduled to be available in its first iteration, the company has also confirmed plans to allow customers to trade their tokens with one another in the future.

Oliver Timm, Chief Sales Officer of Hugo Boss, praised the new program’s “bold, customer-centric approach,” commenting:

“With our new membership program, we are taking customer engagement to a new level, further enhancing, and expanding interactions with our brands. By deepening the relationship with our customers, we are driving a higher lifetime value thereby further advancing with our profitable growth journey.”

Hugo Boss XP has a bold, customer-centric approach and clearly plays into our vision to become the leading, premium tech-driven fashion platform worldwide.

Let’s take a closer look at some of Hugo Boss XP’s features and analyze whether it will deliver on its customer engagement promise.

Customer Engagement Game-Changer or Token Gesture?

While tokens are undoubtedly at the heart of Hugo Boss XP, the program is also supported by “innovative” customer data and touchpoints, which are leveraged to provide a hyper-personalized and localized omnichannel experience.

The program also aligns with Hugo Boss’ existing two-brand strategy, allowing members to access it via Hugo XP or Boss XP – resulting in improved brand discovery and engagement, according to the company.

However, despite these functions, Hugo Boss XP is still primarily a token program.

Outside of the generic NFT capabilities discussed above, the company also outlined the following two token examples:

Frequent Visitor Token

This token is earned by members who check in by tapping their mobile phone at various touchpoints in a Boss store.

In doing so, users gain access to special Boss products, as well as a more personalized service due to store employees having access to specific customer information.

Hugo Blue Token

The token rewards customers of Hugo Blue (a specific brand line) with unique digital wearables, and offers brand-specific tokens for co-creation opportunities.

With the likes of Louis Vuitton, Gucci, and Prada implementing blockchain and Web3 technologies into their loyalty programs in recent times it is unsurprising to see Hugo Boss following suit (pun a little bit intended).

Yet, while the company talks a good game on personalization and customer engagement, these ideals are entirely dependent on its token system.

And although that system clearly offers customer benefits, is it enough to bring about the drastic customer engagement changes the company is targeting?