One of Australia’s largest multi-million-dollar online retailers has shared the secrets behind the data strategy that has catapulted them into success.
Australian online retail giant Kogan is one of the nation’s biggest online retailers, turning a profit of $ 3 million in its third year into a profit of more than $40 million in its seventh year.
It’s the retailer’s use of data to enable complex insights into its customers that has spearheaded this growth, seeing the retailer grow exponentially in just 12 years.
The brand, who was the 2018 winner of the Australia post ORIAS People’s Choice Award for best large online retailer, said it is this commitment to embracing data-driven insights to improve its customer service capability that has sparked its success.
Daniel Beahan, Director of Customer Care, said Kogan.com considers itself a statistics business masquerading as an eCommerce company.
“Data is key to unlocking our customer expectations and it is our mission to understand the wants and needs of our customers better than any other online retailer,” Mr Beahan said.
“Listening to our customers has taken Kogan.com from garage to global success in just 12 years.”
The brand’s mission, to provide the most in-demand products at an affordable price, is enhanced through data, he says.
“Our business runs off harnessing data-driven insights to understand what our customers want and what products are in high demand.”
Data has always been “at the heart” of Kogan, Mr Beahan told Retailbiz.
“At Kogan.com, data mining and streamlined systems are what keeps our customers happy. Our strategic business vision has always included harnessing data-driven insights to understand what customers want and which products are in high demand.”
Over the past 12 months, Kogan has continued to use innovative technologies to make significant investments to improve their customer offering, Mr Beahan said.
“We now have a nationwide logistics network, which enables us to provide customers with faster and more cost efficient delivery options. We operate in more industries than ever before and continue to invest in growing our portfolio.”
Just a few weeks ago, the brand launched a Marketplace, and has signalled more “exciting announcements” in the near future.
It’s this customer-centric, data-driven approach to retail that saw Kogan.com take gold at last year’s ORIAS, according to Andrew Chamberlain, Australia Post General Manager of Enterprise.
“In considering potential winners of the Australia Post ORIAS People’s Choice Award, one of the key things consumers look at is a personalised experience that supports ease of purchase – an area in which both Koh and Kogan.com are excelling,” Mr Chamberlain said.
Registrations for the Australia Post ORIAS People’s Choice Award for 2019 are open, with applications to close 31 May. Consumer voting takes place from 1 May-31 May: auspost.com.au/orias