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.