Kogan First Growth Amid Legal Concerns
Kogan.com's loyalty program, Kogan First, grows to 472,000 members, now accounting for 60% of sales with a fee increase to $129. Concerns rise over automatic opt-in practices.
May 27, 2024
Kogan First: A Rapidly Growing Loyalty Program
Kogan.com refers to its loyalty program, Kogan First, as "the north star of the business" aiming to boost profits. The program's membership has seen significant growth, starting from 100,000 in 2020. The membership numbers accelerated from 2021 following an initiative that automatically enrolled customers into a Kogan First trial during checkout.
As of now, the program boasts 472,000 members and has also increased the annual subscription fee from $99 to $129. These members contribute to 60% of Kogan's sales and represent a quarter of all active Kogan shoppers, defined as customers who have made a purchase within the last 12 months.
Concerns Over Automatic Opt-In Practice
However, this growth tactic has attracted scrutiny. Blackwattle Investment Partners has criticized the automatic opt-in feature used during checkout. They argue that it may be categorized as a dark pattern, which could potentially be outlawed under new consumer protection laws currently under consideration.
