The power of the crowd is what determines the success of a brand in today’s market. The 21-century consumer first looks at crowd-sourced reviews before deciding whether to purchase a certain brand finally. The reviews to customers’ acts like personal recommendations from people they know or can associate with. As a result, firms today are shifting their marketing strategies and are now more focused on consumer behaviors. The use of reviews is becoming a more popular marketing model. Savvy brands such as Fabletics have realized the impact customers reviews have on a brand and have capitalized on using it in marketing their products. Fabletics was launched in the year 2013 and a growth rate of 200%.The company’s revenues have risen to over $235 million dollars in less than four years and have more than one million paying members. The reason behind the company success according to Shawn Gold a Corporate Marketing Officer is the use of reviews or the crowd.
The use of reviews as a marketing tool has helped Fabletics to increase customer acquisition, improved loyalty, and retention of customers’ thus rapid growth.
Today’s consumer trust reviews more than anything else. This is so because there have been advancements made in technology which has made the world a global village thus consumers from different parts of the world can share information and experiences online. People today before making a purchase have to research on that particular item, read the reviews and make final determinations from those reviews. If your products have positive reviews, then the chances of the consumer purchasing your products are very high. Trust and power are developed from others opinions and feedbacks. Brands such as Fabletics understand this concept and have leveraged it.
The more positive reviews you get, the more the power or revenue to your business. Positive reviews help improves the search rankings of a firms products leading to more customers which translate to more revenues. Business should try incorporating the use of reviews into product offering or customer service. According to Gold customer reviews has helped Fabletics retain close to 85 % of its customers and get 17% new customers from referrals. Fabletics have been able to use reviews to capture new customers and at the same time refine its products.
Crowd sourcing has helped build Fabletics as a brand as it has forced it to be more transparent and customer-focused. Businesses should be run with empathy and be data-driven. They ought to first understand their customer’s needs and act on them. Brands products should be based on customers opinions.
In 2013 TechStyle Fashion Group Founders wanted to start an athleisure brand and were looking for a partner. The person who came to their mind was none other than Kate Hudson. They settled on Kate Hudson because she’s approachable, has a very active lifestyle and doesn’t take herself too seriously, a typical representation of what they wanted Fabletics to be. Kate agreed to the partnership and from day one has been actively involved in the business.