Five ways to replicate Kogan’s online success

Written on 15 October, 2013 by TPP Wholesale
Categories: Domains, General Wholesale, Online Marketing | Tags: online business, small business

Every small business owner can learn a lesson or two from digital entrepreneur Ruslan Kogan. Kogan took on the major retailers directly, growing his online electronics company from a backyard business in 2006, to a one turning over $300 million in 20131. His success is largely due to a savvy understanding of digital analytics and social media. Here are five lessons from Kogan that you can put to work in your business to ensure online success.

  1. Make it happen. Get out there and build your business, take calculated risks and don't sit on your ideas.

    Initially Kogan started out by making his own connections with Asian manufacturing, bypassing the major bricks-and-mortar sellers to bring seriously reduced consumer electronics to Australian consumers. In building an online only business he took full advantage of the lack of overhead to pass on savings.

  2. Pay close attention to the data and optimise your offering.

    Kogan’s real power comes from an intense scrutiny of online analytics. The exact information about every customer and browser of the online store lets him see where people are coming from, what they look at and for how long, what pages are likely to make a customer leave the site and what products they eventually buy. It also allows him to see exactly how and where his advertising dollars are working. With this detailed information, Kogan is able to tailor its online shop, making changes to streamline the user experience and improve conversion rates leading to online success.

  3. Use keyword analytics to stay abreast of trends.

    A regular analysis of tools like Google Analytics helps Kogan stay on top of trends and adjust the website accordingly. This level of insight into customer behaviour allows the business to take full advantage of the agility of a purely online company.

    “We knew that we wanted to sell notebooks about a year ago because we saw a huge spike in Google search traffic to notebooks,” says Kogan. “So we set up a blog on our website and asked our customers exactly what type of notebook they wanted. In a week we had over 1000 people post in the blog saying exactly what they wanted.”

  4. Engage customers directly on social media, building a community around your business.

    But Ruslan Kogan didn’t stop there. He took to social media in a very big way, involving himself personally in commenting, blog posting and interviews, and spending a great deal of time interacting with customers via Twitter and other online platforms. The company not only listened to customer wishes and complaints, but engaged in genuine conversation with them to better the business and bring people what they wanted.In an interview with mybusiness.com.au Kogan said, “The most effective marketing technique has been building and fostering a loyal online community around the Kogan brand. We have hundreds of thousands of loyal fans around the world that we are in constant conversation with over email, through the Kogan blog, Facebook and Twitter.”

  5. Be agile, adapt to change and be ready to reshape your business to customer demands.

    The ability to react quickly and respond to customer demand has been a hallmark of Kogan’s success. Whether it’s tracking site visitors, using analytics tools to keep abreast of trends, or engaging on social media, Kogan makes the most of its agility and flexibility.

With the availability of these analytic and social media tools to any would be entrepreneur, anyone willing to put in the effort can achieve the business success. Online business has never been more viable, with such deep insight into what your customers genuinely want and are doing online. By following the above you may be on your way to online success.

TPP Wholesale's Whitelabel solution is a a great way to start or expand your domain business online.  Contact us on (02) 9215 6001 to speak to one of our Wholesale consultants today.

1 http://blogs.wsj.com/moneybeat/2013/09/11/kogan-dick-smith-explore-options/