It is Kogan’s price leadership, product range and ability to scale that has elevated the company to a level where they are genuine competitors in the Australian eCommerce space. With the likes of Amazon, eBay, JB Hi-Fi, Harvey Norman and others all vying for market share, loyalty programs can help a brand differentiate themselves, continue to engage existing customers, and attract new ones.
Operational and digital efficiency has been a core component of Kogan’s success, however a major focus going forward will be the Kogan First subscription. The member benefits subscription program boasts some appealing offers across Kogan’s breadth of products and services.
How do I subscribe?
Firstly, create an account on Kogan.com. Only an email and password are required to do so.
Once an account is created a user can subscribe to Kogan First. A two-week free trial of the program is automatically applied and the member is charged after the free trial ends.
The current price of the program is $5.99 a month (was $11.99) or $49 annually (was $99).
What do I get?
Earn 1% of every purchase in Kogan Rewards Credits. These can be redeemed on future purchases. The relatively small amount of credit may not seem like much, but it could stack up quickly if a member is using Kogan as their “go-to” eCommerce destination.
Free shipping – and if a product already offers free shipping, members are upgraded to express shipping automatically.
Exclusive member only offers – a section of the website dedicated to special pricing for members only. There is a good range of products on this list across numerous categories and the offers seem to be quite appealing compared to what a standard customer is paying.
Everyday discounts – receive a further 5% off Pantry and Beverage items at checkout.
Priority customer service – when members contact customer service through the “Customer Care” section of the website, they are placed in a priority queue. Having said this, the only customer service option is to submit an online support form.
For each Kogan “Essential Service” the member joins, they will receive $20 Kogan credit every year – this includes mobile, internet, energy, insurance, credit cards, home loans, super, and cars. Switching to the 11 advertised essential services Kogan offers provides a hefty upfront amount of credit (depending on the service) and a yearly credit amount of $220.
Is it a good deal?
Having focused on operational efficiency to deliver low prices and developing partnerships to increase the product range, now, Kogan is pushing to attract, retain and persuade customers to buy more. The Kogan First program provides great value for regular users. Now that anyone can buy almost anything from Kogan (not just tech), members may shift their purchasing habits to buy all sorts of products and services from Kogan, even their pantry grocery items!
With free shipping on all orders, discounted everyday items, and credit on every purchase, why not give it a try?
It will be interesting to observe the evolution of this program. Ruslan Kogan (CEO and Founder) is aiming for 1 million Kogan First subscribers, which is a hefty feat. Could the program really offer “priority” customer service to everyone? If the program’s popularity begins to grow, it will be very interesting to see whether tiering is introduced or even some elements of gamification.
If you’re jumping on to Kogan.com, check out our very own Loyalty Programs: The Complete Guide while you’re at it (which, like everything else, Kogan sells at a small discount).
Hunter Murray is a Loyalty Account Executive at Loyalty & Reward Co, Australia’s leading loyalty consulting agency. He has worked in several roles across the financial services, strategy consulting, and customer service industries. As a Loyalty Account Executive, Hunter applies his skills across all aspects of the business, including loyalty program design, member engagement and client management, and underpins the implementation and operation across a range of B2C and B2B projects.
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