The world is changing and so is technology, businesses, and ways of marketing. The traditional methods of marketing relied heavily on products campaign, road shows and use of posters. Modern marketing methods include the use of digital advertising through the mass media and the social media platforms. However, there is one unique new marketing technique that is gaining popularity and is customer-centric, and that is the use of the power of the crowd or crowd-sourced reviews.
Consumer Purchases today are determined by crowd-sourced reviews. Before a customer purchases, a product they first look for crowdsourced reviews, and the more a product has positive reviews, the more the likelihood that the customer is going to buy the product and vice versa. Reviews act as personal recommendations from other clients who have previously bought the product and have the first-hand experience with the product.
Savvy brands such as Fabletics are capitalizing on this concept and for this reasons they have been able to outdo their competitors within less than five years. Fabletics was established in the year 2013 by two friends Don Ressler and Adam Goldenberg. The duo later brought on board Kate Hudson as a partner and brand ambassador of the company’s products. Fabletics boast of rapid growth and has recorded over 235 million in revenue indicating a 200% growth rate since the firm was launched. Fabletics, in addition, has more than one million paying members. Shawn Gold who is TechStyle’s Corporate Marketing Officer attributes Fabletics rapid growth on embracing the use of reviews or power of the crowd.
The company has leveraged on the power of the crowd, and as a result, they have been able to increase customer acquisition, improved loyalty and increase customer retention all of which have contributed to the rise in revenues. Today consumers trust reviews more than anything else, and because of increased digital awareness, online reviews have become a significant part of a consumer’s decision-making process. Customers before making purchases they first research about a business read a couple of reviews and then make their final determination on a product. According to research conducted by BrightLocal Study, about 84% of people trust online reviews and regard them as personal recommendations. The number has always increased every year the research has been conducted. According to Peter Holten the founder and CEO of Trustpilot, people no longer trust the traditional marketing and advertising methods nowadays. There are power, safety, and trust in the opinion and feedbacks from reviews and companies that understand this concept have been successful.
Reviews that are authentic and genuine help boost businesses. They also help improve a company or a product search ranking which in turn captures more customers leading to increased revenues. Business should try to incorporate reviews into product or service offering, and as a result, there will be more repeat loyal customers. Fabletics understands this marketing strategy and does take their customers seriously. They respond to thousands of its customer’s reviews. Reviews have helped Fabletics gain new customers through referrals and more fundamentally has helped them refined their products.
Hudson has played a key role in marketing Fabletics product as she models the clothes and loves being the brand ambassador. For customized athleisure product just visit the Fabletics website sign up and take a lifestyle quiz.