In the modern business environment, consumer purchases are largely influenced by the crowd power. Most modern customers rely on reviews sourced from the crowd religiously before making up their mind on making a purchase. This has seen tech-savvy brands like Fabletics exploit this consumer behavior shift to their advantage. Fabletics has experienced tremendous growth from 2013 when it was officially launched. It has managed to push its revenue to more than $235 million and has membership subscribers that surpass the million-mark. This huge growth is largely attributed to the company’s embracing of the crowd or user reviews. Here are some of the reasons why savvy brands are embracing user reviews and the power of the crowd.
Modern consumers lead a digital life and thus trust online reviews more as they influence their final decisions. According to a research conducted by BrightLocal, about 84% of the people today believe online reviews just as much as they would from somebody they fully trust. The feedback and opinions from the crowd are now trustworthy, safe and powerful. This is the main reason why brands that understand this fact leverage this power.
Common Feature and Frequent Use
A huge number of surveyed customers often research various businesses often like once monthly. A high number of consumer brands include user reviews on their product pages and website to boost sales. From 2014, this number has shot upwards by more than 70%. Studies show that the modern consumer is searching for more information and reviews about a particular product than even its price.
Great Reviews Mean More Revenue
Genuine and authentic reviews have the ability of boosting the bottom lines of businesses due to the improved rankings on search engines and capturing more customers, which signal revenue increase. The business strategy of incorporating reviews on websites begets loyal repeat customers. This means higher returns on investment.
Positive Reviews Spur Revenue
According to findings by BrightLocal, about 74% of consumers are ready to pursue the purchase option after reading positive reviews. Any slight increase in the rankings of a website or product consequently leads to an increase in revenue. Positive reviews keep the loyal and valuable customers coming back signifying a steady and increasing income stream. Fabletics benefits a lot from the high number of repeat customers and referrals. Crowdsourcing helps businesses to become more customer -focused and transparent.
Kate Hudson’s Efforts on Growing the Fabletics Brand
Adam Goldenberg and Don Ressler, founders of TechStyle Fashion Group, came up with the idea of launching an athleisure brand. There was no brand offering quality athleisure that were reasonably priced and stylish at that moment. The duo picked on Kate Hudson to be their partner due to her approachable and easy personality as well as her leading an active lifestyle.
Kate Hudson is actively involved in making budgets, choosing social media strategies and in designing the outfits. She came up with a fresh data system that ensures they have accurate inventory levels. This was after customers complained that the best outfits at Fabletics were getting sold out fast. Fabletics got a better customer satisfaction score and top ratings from the Better Business Bureau in only 18 months thanks to her efforts.