The “Power of the Crowd” is a key element that determines the success of consumer brands. This power comes from consumer reviews. Consumers trust and use reviews in making online buying decisions almost as much as they trust a personal recommendation from a friend. A survey by BrightLocal concluded that 84% of consumers trust reviews and that number increases each year.
Reviews Increase Sales
If the reviews are honest and mostly positive, they increase sales. BrightLocal found that having reviews on an online product page increases the chance by 17% that consumers will take the next step in buying a product.
Fabletics is an example of a brand that takes consumer reviews seriously and benefits from managing them. Since the company launched in 2013, revenues grew more than 200% to $235 million annually.
In less than five years, the company attracted over one million paid subscription members with its unique marketing program and subscription service. Marketing Officer, Shawn Gold, of the parent company TechStyle Fashion Group attributes the success to embracing the crowd and responding to the user reviews they make.
The rapid growth of Fabletics came about by following the customer journey and leveraging the consumer reviews by making them a prominent part of the marketing strategy. This increased the rate of customer acquisition, improved customer retention, and encouraged customer loyalty.
Online Reputation Management
Managing a brand’s online reputation is taking a proactive stance to improve the consumer experience and keep the brand name in high regard. Even if a few reviews are negative, this increases consumer confidence that the reviews are honest. If the company has dealt with any public criticisms promptly, fairly, and in a way that would satisfy most people; a negative review actually has a positive effect on the readers.
A proper response to a negative review may be as simple as the company saying, “We are sorry you had a problem. We would like to offer you a full refund and a discount coupon for your next purchase.” This indicates the company cares about their customers and encourages an upset customer to continue to have a relationship with the company and the brand.
Why Kate Hudson Loves the Winning Fabletics Athleisure Brand
In 2013, Adam Goldenberg and Don Ressler, the founders of the TechStyle Fashion Group, approached Kate Hudson with the idea to start the Fabletics brand and wanted her to be a partner in the effort. They chose her because she is authentic, active, and does not take herself too seriously. At the time, there were no successful brands of modestly-priced athletic clothes for women, just expensive offerings in the dull colors of black and gray.
Kate Hudson agreed to help build the Fabletics brand of athletic leisure clothes, which uses the word “athleisure” to describe the fashion line. The motivation behind the company’s success has been to fully empower women of all shapes, ages, and sizes. Kate dove right in, learning everything she could about the sports-clothing fashion industry and participated in all the details of launching the brand. Fabletics has a unique subscription membership program that regularly delivers new products to its customer.
Kate’s friend Demi Lovato says that she loves Fabletics because of its focus on female empowerment. Over a million other women, who are Fabletics subscribers, agree with her. Demi now supports Kate by being a brand spokesperson for Fabletics. Kate went from her starring role in the movie Almost Famous to create great achievements for Fabletics. With Kate’s involvement, the brand has become a tremendous success.
Have some fun and take the Fabletics Lifestyle Quiz to learn what gear, footwear, and exercise apparel are right for you and your workouts.
Why Successful Brands Like Fabletics Leverage the Power of the Crowd
Kate Hudson: From ‘Almost Famous’ To Fabletics Greatness