Consumers are shifting attention from what the seller says the product is to what the customer means. Crowd-sourced reviews tend to influence the decision of the buyer and again make them feel comfortable with the product as if it has been recommended by someone close to them. Fabletics has experienced the effect of the crowd or user review. Fabletics was launched in 2013 and has grown by over 200% making more $235 million in revenue. Reports are a powerful marketing tool and can both attract customers, retain, or even improve their loyalty to a given product.
Trust: most customers crowdsource their purchase decision, they spend time researching the product and going through the review. BrightLocal Study in their recent research found out that 84% of consumers trust online review and they no longer consider old marketing strategies to be effective. Peter Holten Trustpilot CEO and Founder said that the crowd feedbacks are now safer, trusted and influential and one can rely on them for authentic information.
Regular use: The percentage of customers who research business monthly has gone up by at least 23%. The other 50% frequently read reviews and with 60% saying that negative reviews have caused them not to buy a given product. Businesses with an excellent reputation tend to make more sales than the ones without.
There has been an increase of 70% on the brands that include user review on their websites since 2014. User review has experienced drastic growth. Many consumers click on a product to compare the reviews as opposed to comparing the price.
How Powerful is Authentic Review?
Positive, authentic reviews help a brand to move up the Google search rank quickly. Research done by Firm L2 found out that those businesses with numerous reviews on several e-tail sites tend to get higher ranking as opposed to those with fewer reviews. Many consumers will decide to buy a product after reading the reviews hence leading to more revenue. Businesses with reviews are 17% likelihood of making sales as opposed to those without.
Fabletics collects and responds to thousands of customers reviews and even make some part of their forum. Fabletics understand the theory that review leads to repeat customers. Roughly 85% of their customers are repeat customers with only 17% being new customers. Crowdsourcing dictates businesses to be transparent and customer-centered.
About Kate Hudson
Kate Hudson significantly contributed to the success of Fabletics. Fabletics as established in 2013 as a fashion-forward athleisure brand. The company that started so little has for four years grown, and its current worth is $250 million. Kate was the first person that was brought in the company because she represented the real picture of what the shareholders wanted the company to be.
Fabletics president Gregg Throgmartin said that Kate was involved in establishing the company from the beginning. Kate is a celebrity who used the product that she endorsed and promoted. Kate could use the work out right from the Fabletics as a way of promoting the business. Kate later collaborated with a company that had enough experience on online fashion a move that positively contributed to the growth of Fabletics.