“The power of the crowd” is increasingly determining consumer purchases. Today, customers turn to crowd-sourced reviews to decide their final purchase. They trust the reviews they read and view them as personal recommendations from people they know. This trend has led savvy brands to capitalize on this consumer behavior shift using review-centric marketing approaches.
One such brand is Fabletics. Since its launch in 2013, Fabletics has achieved a growth of over 200 percent to a revenue of more than $235 million not to mention over a million paying members. According to TechStyle Fashion Group’s Corporate Marketing Officer, Shawn Gold, much of Fabletics success can be attributed to embracing the crowd or user reviews.
Fabletics was able to power such speedy growth by leveraging the significance of reviews in the customer journey of today. Consumer reviews are in a position to directly influence increased customer acquisition, customer retention, and improved loyalty for brands across all fields.
The consumers of today increasingly lead digital lives making online reviews important factors when it comes to the process of decision making. People have the tendency of researching businesses prior making any purchases. Additionally, they read reviews to help them make their decisions. According to the latest BrightLocal study, around 84 percent of customers view online reviews as personal recommendations from people they know. Since the survey was conducted, this stat has been increasing every year.
According to the CEO and Founder of Trustpilot, Holten Muhlmann, trust is presently in an all-time law, and people have no trust on traditional advertising and marketing strategies like before. However, there is safety, power, and trust in the feedbacks and opinions of the crowd. The smartest brands are fully aware of this, and they have begun leveraging it.
When TechStyle Fashion Group’s founders Adam Goldenberg and Ressler were starting an athleisure brand, there wasn’t quality, reasonably priced and stylish athleisure brand on the market. Only grey and black overpriced women workout gears. They needed to change this, but first, they needed a partner. The first person they thought of was Kate Hudson. Because of her approachable nature, active lifestyle, and failure to take herself overly-seriously, she represented what they needed Fabletics to become.
Since day one, Kate was heavily involved. Be it picking social media strategies or reviewing budgets; she was hands-on. Until now, Kate actively participates in the design process. Additionally, she closely works with the team to make sure that the styles remain fresh.