“We are continuing to increase the benefits that Kogan FIRST members get,and in order to keep the program sustainable and providing that huge amount of value to those customers,we have had to make a difficult decision of a price rise,” Kogan said.
“Yes,it’s better to not have a price rise,but they’re still making huge,huge savings across the board.”
More than 60 per cent of Kogan.com’s sales now come from Kogan FIRST members,or approximately 466,000 people among the online retailer’s 3 million customers. Kogan said the program was being continually expanded and had to be funded by a price rise as a result.
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“We’re giving away free shipping,express shipping,credits to those customers,they get 2 per cent cashback on exclusive brands,they’re getting double Qantas points,and we’re also giving away hundreds of thousands of dollars of prizes to Kogan FIRST customers,” he said.
“We haven’t had anyone be able to show us a better loyalty program than this.”
In November,consumer advocateCHOICE awarded Kogan FIRST a “Shonky Award”,accusing the $758.3 million company of tricking customers into signing up to the subscription without intending to.