The power of the crowd has new meaning for business today. There has been a decided shift in power from the seller to the buyer, as customers have discovered the use of reviews in making purchasing decisions. Surveys note that 84% of customers value real reviews even over recommendations from people they know. Customers have become savvy in finding real-time feedback from fellow customers. Reviews have become the most prevalent part of online shopping, even more, important than price.
One company that has folded seamlessly into leveraging the crowd is Fabletics. This is a relatively new activewear company, created by Adam Sandburg, Don Ressler and actress Kate Hudson. Their goal from the very beginning was to fill a fashion gap in active wear. People had the choice of buying quality clothes or buying affordable work out gear. Not to mention the drab and mostly functional style of active wear that was being offered. Hudson has helped to create vibrant and fashionable clothes at an affordable price.
Fabletics is almost obsessed with its customers which is the perfect attitude for today’s business. This company emphasizes the importance of positive reviews and customer feedback. Not only do they collect information, they respond to the reviews and make changes based on them. Fabletics was started in 2013 and because of their unique business model has grown over 200% and over one million members. Membership is another unique aspect of the company as people can join and get meaningful perks such as customized style consultation and monthly shipments. Shoppers are encouraged to take the style survey on the website to help pinpoint their personal likes and dislikes.
As Fabletics is proving, more and more shoppers research products and companies before making purchases. Half of the shoppers say that research businesses at least once a month and 50% of buyers read reviews regularly. Companies like Walmart, Target, and Amazon have begun paying attention to reviews because they know this drives purchase. Positive reviews ensure a higher place in search engines such as Google which means more traffic to the page. 74% of customers say that positive reviews would ensure the next step toward purchasing product.
Kate Hudson is an actress and a mom. She was the perfect spokeswoman for Fabletics because her fans know that she will not support things she doesn’t believe in. She influenced the company to rethink their communication styles and to enhance the review section of the website. 85% of sales at Fabletics come from return customers so reviews play an important part in the success of a company.
Shawn Gold, who is the CMO for Fabletics, says that it is no longer the company who defines who they are; it is the customer who tells other customers who the company is. If you ignore positive or negative reviews, your chances of succeeding have diminished. The unique strategy of leveraging the crowd is what makes Fabletics different and he says that a customer-focused company keeps it accountable and transparent. It is all about the customers and their feedback at this point, he explains. It is a different business world.
Fabletics has been among the United States’ leading athleisure wear companies for the past four years that it has been in business. TechStyle partnered with Kate Hudson in establishing the firm in 2013, and it has currently attracted millions of clients. Fabletics is now in a position to compete with old e-commerce companies such as the Amazon. The firm has been capitalizing on the power of the crowdsourced reviews to offer top-notch activewear products to women across the United States. It has managed to make over $235 million from selling products, and its value also increases by more than 35 percent every year.
The power of the client reviews has enabled Fabletics to become one of the most successful e-commerce companies. The business sells most of its products online through a subscription plan that has more than one million loyal customers. Fabletics has become successful due to the robust relationships that it has developed with its customers. It has made sure that all products and services satisfy the needs of its clients, and this has enabled it to be offered positive reviews. The websites of the most successful e-commerce enterprises allow customers to write reviews about products that they have used. The comments are beneficial to other consumers since they inform them on the quality of goods. Many people tend to be attracted to buy products from brands that have an excellent reputation.
According to recent studies, a company’s crowdsourced reviews have a great impact on the sales that it makes. More than 80 percent of internet users trust the online comments that have been written by consumers. They consider them as personal recommendations and believe in them more than the traditional advertisements. The positive reviews that Fabletics gets from people who have used its products has enabled to retain over 85 percent of its customers. Consumers who have used its products also refer new clients to the company. The athleisure wear enterprise has been using the feedback that it gets from the customers to make its goods and services better. According to Kate Hudson, Fabletics has penetrated the online fashion market due to its determination to leverage the power of empathy, data, and technology.
Most of the world’s leading search engines have rated Fabletics well, and this makes it appear on the first page when it is looked up by clients. Consumers are also referred to the company whenever they search for anything about athleisure wear. Information that is offered on leading review websites portrays Fabletics as a reliable company that is committed to providing the best products to the clients.
Kate Hudson has been overseeing the production, marketing, and customer service strategies of the firm. She is also the face of the company and has been ensuring that its activewear products make women feel comfortable. The company utilizes a technique that is known as reverse showrooming to increase sales in its brick-and-mortar stores. The enterprise has established over 30 stores in various regions of the United States.
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