Freelancer.com helps talent go global with Adyen
Listed on the ASX in 2016, Kogan is Australia’s number one purely online retailer with more than 2.4 million active customers. Its popularity continues to boom with August 2020 marking the biggest growth month on record for the company. In August 2020, Kogan saw year-on-year gross sales increase more than 117% and gross profit up more than 165%.
Kogan.com’s portfolio of retail and services businesses includes retail (the Kogan.com and DickSmith.com.au retail websites), marketplace, mobile, internet, insurance, travel and furniture business Matt Blatt. The Kogan.com brand is renowned for price leadership through digital efficiency. By keeping business processes lean, it offers shoppers the best value and helps maximise customer savings.
Managing the large Kogan.com portfolio is an opportunity to add to this efficiency. The myriad of payment systems at the backend of its six websites and two apps meant considerable resources could be required to deal with the different systems.
Kogan.com was looking to integrate, improve and streamline payment management systems. In 2016, it turned to Adyen to integrate and simplify its payment processes.
“We had to integrate reporting and revenue collection for the various websites. Adyen’s full payment stack meant that we could integrate the various systems and be ready to serve customers within a week with no operational downtime. We allocated a set number of hours for the implementation but it was done in half the time.”
Switching to Adyen’s single stack platform also enabled a myriad of other benefits that translated into higher conversions and operational efficiencies.
For example, by leveraging Adyen’s local acquiring capabilities in Australia and New Zealand, Kogan.com was able to connect directly to all major card schemes, get a strong understanding of payment performance and create tailored risk profiles to specifically address fraud where it arose.
“Having one platform has been extremely effective. Adyen offers acquiring, risk management and gateway services, meaning we leverage a full payment solution as opposed to having one piece of software to process transactions and then having to manage multiple payment providers,” Beahan says.
Adyen’s risk management tool, RevenueProtect, which includes Dynamic 3DS2 (an authentication solution), allowed Kogan.com to easily protect itself from unauthorised payments while ensuring both compliance with regulation and a frictionless user experience.
“The simplicity that Adyen’s platform enables is the biggest thing. It’s saving us a fortune by saving us time and keeping our user experience consistent as we move to 3DS2,” Beahan adds.
In 2019, Adyen added an “experiment” feature to its RevenueProtect solution. Leveraging retail concepts like A/B testing, the feature allowed Kogan.com to leverage the power of payment data provided to them by Adyen. By collating the data in a single place and enabling unprecedented merchant access, Adyen allows Kogan.com to experiment with various factors to test, learn, and optimize its payment flow.
By using RevenueProtect Experiment, Kogan.com was able to improve revenue by 6%.
“We’ve had huge victories and Adyen has been excellent to work with. They proactively contact us with ideas on how to manage customer experience while improving authorisation and conversion rates,” Beahan says.
Ultimately, this means it’s easier than ever for customers to place orders seamlessly in their preferred way.
Network Token Optimization is one of Adyen’s RevenueAccelerate features that helps drive increases in authorization rates for Card On File transactions. Unlike regular card tokens, Network Tokens are provisioned by the card schemes and help avoid churn because they never expire.
Adyen’s Network Token Optimization relies on machine learning to ensure that network tokens are only used when they improve authorization performance. The feature requires no integration effort, and with greater issuer trust and real-time updates, boosts approval rates.
Kogan and Adyen piloted Network Tokenisation Optimization across Kogan and Dick Smith Australia and New Zealand, as well as Kogan Mobile New Zealand from mid July to the end of August.
The pilot achieved promising results for Kogan, in particular in Australia, where the technology is now enabled with proven benefits. “Adyen's Network Token Optimization engine increased authorization rates on eligible transactions just under 6% on relevant cards and overall 1.95%,” said Daniel Taft, Director of Operations.
“Prior to Adyen, trying to do simple things like searching for a transaction from months ago would cause the system to go into meltdown. Now all of our brands are searchable under one combined system and we get results almost instantaneously,” Beahan says.
With Adyen’s custom dashboard, each Kogan.com team member can quickly access specific information that’s relevant to them. "We assessed a range of different payment providers and found that while some of the functionalities were similar, Adyen's dashboard provided exactly what we wanted. It was simple to use, while providing sophisticated insights,” he adds.
Adyen is helping Kogan.com keep processes lean in order to continue delivering low prices for its customers.
“I’m also impressed with our dedicated Adyen account manager. In addition to our account performance reviews, we have regular catch-ups and we’re constantly being sent useful information on platform updates and business insights,” he says.
“Adyen regularly shares ideas on how we can improve business and how we can reduce costs to maximise customer savings. We appreciate this attention to detail, and it’s important that we work with a payments partner who believes in and supports what we do,” Beahan says.
Kogan.com is keen to build upon its Adyen relationship. It has been able to explore ways of delivering more convenience and personalisation, particularly for international customers who expect local payment options.
“There’s a whole untapped market of customers who have their preferred payment options. At the flip of a switch we could enable Alipay, UnionPay or WeChat Pay. It’s all built into the Adyen platform and requires minimal effort,” Beahan says.
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