Increasingly, companies are taking advantage of the power of the crowd. Savvy brands know that most of their customers are looking at product reviews written by others and rely upon them to make purchase decisions. Some companies, such as Fabletics, are pursuing marketing strategies where these consumer reviews are presented front and center.
Due to taking advantage of the power of the crowd, Fabletics in its first four years has had explosive growth. It now has more than $235 million in annual revenues and over one million members that pay a monthly fee. Their website features customer reviews prominently which executive at the company gives a lot of credit for their success.
A study recently completed by BrightLocal focused on the customer reviews. Their findings show that 84% of people trust the reviews they read online to a great extent. The study also showed that more than 50% of study participants research a company at least once a month. Due to this 76% of brands now have user reviews on their website and that area of their websites have had the largest growth.
Trustpilot in one of the biggest review sites on the internet. They now have 30 million reviews and 20,000 new reviewers join the website every day. This shows a new truth which is that a brand can no longer be defined by the company behind it. Instead, the brand is now what the customers and online reviewers say it is.
As a company that strives to operate transparently and with a focus on their members, Fabletics approaches customer engagement in a number of ways. One of the ways they do so is prompting new members to complete a Lifestyle Quiz. By taking the quick Fabletics is able to find out more about their members such as what type of fashion they find appealing and their clothing sizes. This information is used to make the members online shopping experience better as they then see clothing that matches their interests.
Fabletics was started as a partnership between Techstyle Group and the actress Kate Hudson. A known fitness buff, she was the perfect person for Techstyle Group to partner with. This is especially true because she is very hands-on at Fabletics. She reviews sales numbers, the clothing for sale, and all other areas of running the company.
Under Kate Hudson’s leadership, Fabletics has shot to the top of brands that offer women’s activewear. She has said that in addition to offering quality clothing that is fashionable and can be worn all day, another thing she wanted at Fabletics was for the clothing to be affordably priced. She has said that when buying activewear she couldn’t believe the prices of most options, and this was a problem that she wanted to solve at Fabletics.