Australian online retailer Kogan is driving a medium-term goal to reach 1 million subscribers to its Kogan First loyalty program.
Kogan reported a 209.7% year-on-year increase in subscribers to 372,000 members as of June 30, 2022, since launching in 2019. This excludes Kogan First customers who are in a trial period, and includes only non‑trial subscribers.
Founder and CEO Ruslan Kogan welcomed the rapid growth, saying the program rewards its most loyal shoppers by providing free shipping, exclusive deals, everyday discounts, Kogan First Rewards Credits and priority customer care.
“In FY22, our loyalty program delivered over $20.5 million in subscriber benefits,” Kogan said. “Kogan First Subscribers have stronger loyalty and repeat purchase behaviour because they get such great deals.”
These new benefits include the doubling of Kogan Rewards Credits and expanding the program’s reach to the Dick Smith platform.
"We are working hard to continue delighting our Kogan First Subscribers with the ongoing increase and evolution of subscriber benefits," Kogan continued. "Owing to this, along with inflationary pressures, the price of Kogan First is increasing to $79.00/year. The price increase will allow Kogan.com to continue to deliver the best experience for Kogan First Subscribers4 and offer even greater rewards to our loyal customers."
Chairman Greg Ridder said revenues generated from Kogan First subscriptions increased by 73.4% year-on-year to $15.5 million.
“We were also delighted to have achieved an improving renewal rate of 84.7% in FY22.”
The loyalty program is currently contributing 8.4% of overall gross profit for Kogan.