Kate Hudson and her new company Fabletics is quickly out distancing its competitors and becoming one of the top brands in its industry. One of the reasons they’ve been able to do this is their smart use of the power of the information they get from the crowd. Consumers today are increasingly having their purchasing decisions heavily influenced by crowd-sourced reviews. Savvy brands like Kate Hudson’s Fabletics are leveraging this change in consumer behavior by making consumer reviews of their products a major part of their marketing strategy.
Since they launched the Fabletics brand in 2013, Kate Hudson and the team at TechStyle Fashion Group have seen their sales skyrocket to more than $235 million because of the positive reviews they have received from consumers worldwide. This is the perfect example of the power the crowd wields. And the Fabletics team has been very adept at using reviews from sites like Trustpilot and other online review sites to drive sales. A growing number of people base their buying decisions on information they get online. Recent research shows almost 90% of consumers put as much trust in online reviews as they do recommendations from people they know.
The tech savvy staff at Fabletics is mining these online reviews for information about what modern consumers are looking for in their clothing and accessories and making a point to include that in the products they offer. Using the opinions, feedback and power of the crowd, Fabletics is emerging a one of today’s most beloved brands when it comes to customer satisfaction. About half of consumers regularly read online reviews and a majority say it influences what they buy and where they shop. As a result, Fabletics and many other top brands now make crowd-sourced consumer reviews a major feature on their website as part of their marketing efforts.
Positive, authentic, customer reviews improve search ranking and increase the bottom lines for businesses like Fabletics. Research shows reviews can improve traffic and sales as much as 17%. According to BrightLocal, about 74% of people surveyed said positive user reviews on a company’s product or landing page increase their decision to make a purchase there. Yelp also reports positive customer reviews increases sales by almost 20%. Fabletics recognizes the power of online customer reviews and responds to, collects and manages thousands of them. The company says repeat customers account for 85% of their sales and referrals bring in 17% of their new customers.
Fabletics uses customer reviews to refine their products and address customer issues. And the number of customer reviews are growing exponentially. Smart companies are using the reviews to create an economic boost. Trustpilot has more than 30 million reviews. For customer focused brands like Fabletics, the benefits of crowdsourcing are many and diverse. Consumers define what the brand is and decide if it will succeed. Fabletics uses the online data they collect to understand what consumers want and how the brand can improve their lives. This has helped make them very successful.