Fabletics and other successful brands understand that when it comes to the purchasing decisions of the average consumers, the power of the crowd leads the way. So brands are leveraging this power to increase their sales and improve their image in the minds of consumers. Modern consumers often decide what to buy and which companies to buy it from based on crowd-sourced reviews. These reviews inform their choices as much as personal recommendations from people they know. Companies like Fabletics are using this information to make their brand and their products more popular.
Fabletics’ annual revenue has grown by 200% and the company now has over a million paying members since the brand was launched in 2013. A major reason for this is their effective use of consumer reviews. The brands use of positive user reviews in their marketing efforts has increased customer purchases, improved brand loyalty and helped with customer retention. Consumers today usually read online reviews before making purchases. To them the opinion of the crowd is more trustworthy than traditional marketing.
They read these reviews regularly to see if there’s positive or negative information about the products or companies they are considering and make buying decisions based on them. Fabletics and most other top consumer brands increasingly include consumer reviews on their websites because consumers find reviews more valuable than price comparison when they visit the sites. Great reviews that are authentic and genuine equals increased revenues for companies like Fabletics. They also produce better returns on the company’s customer acquisition investment and improves their search ranking.
At Fabletics they respond to online customer reviews by the thousands because they’ve found about 85% of the sales are from repeat customers and a large percentage of new customers come from referrals. They use the information from these reviews to refine their products and their brand. It has made the company more transparent and customer focused and helps them improve the lives of their customers. With the help of Kate Hudson and crowd-power, Fabletics’ fashion-forward athleisure brand is seen by women as being inclusive, inspiring and empowering and helping women of every age, size and shape look and feel their best.
Even though she is an actress with no business background, Kate Hudson is deeply involved with the growth and development of Fabletics. She’s involved in the styles and designs of the clothing and knows what’s selling, what’s hot and what isn’t. Hudson has helped the company overcome their early challenges and keep the quality of Fabletics products high and the prices low. She has worked to ensure clear communications between the brand and consumers is maintained.
Working with an experienced team using a data-driven business approach has led to a 644% growth in 2016 and $250 million in revenue. Kate Hudson and Fabletics listens to their customers and use customer data and reviews collected from multiple points to stock their stores and their website with the stylish, versatile clothing their customers want and need. The company embraces crowd-power.