Fabletic’s Key to Success is Leveraging the Crowd

The business world has changed immensely over the past few years, and to succeed you must recognize and utilize new strategies. Online shopping has made the retail landscape smaller in some ways but more far-reaching in others. Power has shifted from the company to the customer. The concept of crowdsourcing has become one of the most important aspects of business.

 

One company that has capitalized on leveraging the crowd is Fabletics, an activewear company co-owned by Kate Hudson. Fabletics has a successful strategy of focusing on customers by acknowledging and encouraging their feedback. Hudson, along with co-owners, Don Ressler and Adam Goldberg wanted to elevate activewear to a new level of color and fit for the average woman. While keeping their clothes affordable and paying close attention to product reviews, Fabletics has grown a staggering 200% since they first appeared in 2013.

 

This company started with the idea of offering memberships that benefit from custom items being chosen each month for them. New members take a quiz that helps Fabletic consultants choose things to fit the customer’s lifestyle. The company now has more than $1 million members and growing. Shawn Gold, the CMO for Fabletics, credits much of this success to their focus on customer reviews and feedback. The website highlights reviews and each one is addressed.

 

Customers today are not easily influenced by marketing or branding. What shoppers are looking for today are honest reviews by real people. Research shows that half of the customers investigate reviews at least once a month. 84% trust online reviews more than even personal recommendations from someone they know. 50% of online customers read reviews on a regular basis which is an increase of 51%.

 

The options for buyers to leave reviews has grown impressively too as such sites as Trustpilot have seen a dramatic number of over 30 million reviews. Also, 76% of brands feature review options because they understand that positive reviews drive revenue up and create customer loyalty. A positive review is more likely to appear near the top on Google and other search engines which send new customers to the website. Even such retail sites as Target and Walmart have recognized the importance of review centered websites.

 

Fabletics is most interested in its customers. This company understands that reviews can break or make a company. Hudson, an actress, and real-life mom who works out, is the perfect spokesperson for this company. She believes in what she is saying, says Goldberg. Hudson has influenced the company by demanding up to date communication and attention to feedback. 85% of sales at Fabletics comes from repeat customers who appreciate the focus on buyers. Shawn Gold agrees with the numbers. He feels that the review centered atmosphere makes a company more transparent and accountable to its members.

 

The increase of review driven websites shows the relevance of shopper’s feedback. Any business that wants to succeed like Fabletics, must master the art of emphasizing and encouraging feedback. Not only do companies need to highlight the reviews, they also need to respond to them.

Fabletics: Introducing an Innovative Website

In 2013, a new online retail company was established by Katie Hudson: Fabletics. This company instantly grew, from being a small startup to a multi-million dollar business. Fabletics has also partnered with Amazon recently, to become an unbeatable business in the world of online retail. But what made them so successful in just a short amount of time? One word: reviews.

 

When Fabletics was relatively new, no one knows about it, aside from the fans of Katie Hudson who have heard her plug, and a few who were informed about it. Then, after the website was launched, people enjoyed how the experience went through, and have seen that the quality of products being sold by the company is better compared to other online stores. It fueled word of mouth advertising, with the old customers bringing in new ones because of their positive experience shopping with Fabletics. Others would write down an online review, saying that Fabletics is the place to go. These form of indirect advertising helped Fabletics become one of the most formidable entities in the world of online retail.

 

First-time customers who visit the website at www.fabletics.com will usually be greeted by deals from the company. These deals require answering one of their quizzes so that the system will determine which kind of style suits their customer. This information is fed to the system will also be used for future visits. Quizzes are part of the website, and one should answer them for them to access the shop itself. The questions are not difficult, and there are no wrong answers. It is like a survey wherein the answers depends on the person who is responding.

 

After the quiz, customers can access thousands of collections available on their website, and the clothes are organized in different categories – outfits, tops, bottoms, accessories, signature, and featured. Once the selection of clothes concluded, customers can check it out. There are two types of customer checkouts: one for regular customers, and another one for VIP customers. VIP customers receive discounts and more perks compared to regular customers, and it is recommended to become a VIP to save more. After the checkout, customers would have to wait for the item to be delivered.

 

Many clients who are receiving their item post reviews about their experience with using the Fabletics website. Many of them are satisfied with the experience and recommend other people to try shopping at the site too. Fabletics did not expect the customer’s review to drive their company forward, and they are very thankful to those who are writing positive feedbacks about the enterprise. As a result, Fabletics included a review feature on their website for customers to write down what they think about the company, the product, and the whole experience. Fabletics is anticipating for higher revenues since they are receiving a lot of positive feedback lately from satisfied repeat customers, coupled with new customers who have heard about their friends or family members’ experience about shopping at the Fabletics website.