“Crowd power” is often used to determine the purchases that consumers make. Most consumers these days look at what other customers are saying about a brand and read reviews and recommendations from both personal friends and social media contacts. Brands that are especially savvy are using this trend to their advantage and coming up with effective marketing tactics that utilize the power of “the crowd.”
Fabletics is a great example of this. The brand launched in 2013, and has grown over 200% and accumulated over $235 million in revenue. There are over 1 million paying members who have a Fabletics subscription. TechStyle (the parent company of Fabletics) CMO Shawn Gold says that much of the brand’s success is due to taking customer reviews into serious consideration. Gold knows that reviews from customers can directly impact sales, and can appeal to individuals who will be convinced to become consumers due to positive reviews. Positive feedback from customers can also lead to higher consumer retention, which is the goal for virtually all successful businesses.
Consumers are living lives that are closely tied to the digital world these days, which means that an online review can make a huge difference. Most customers will research a business before making a purchasing, and commentary about the company from those who have done business with a brand can affect a consumer’s perception of the brand. It has also been proven that people tend to trust online reviews. A study conducted by BrightLocal reveals that 84% of online shoppers trust reviews the same way they would trust a recommendation from a friend or family member. Fabletics is well aware of this, and the company has seen significant growth, since more positive reviews lead to more revenue, both from repeat and new customers.
Actress Kate Hudson, the cofounder of Fabletics, announced in the summer of 2017 that she would embark upon the brand’s first collaboration, with singer and actress Demi Lovato. Lovato says that she’s happy to be working with the brand, because Fabletics is all about empowering women and encouraging them to embrace their bodies. Hudson has been hands-on with the organization and success of Fabletics from day one, when the founders of TechStyle Fashion Group asked her to be the face of Fabletics. The founders chose Kate because of her approachable nature and active lifestyle, and Lovato embodies these qualities as well.
Consumers who are interested in becoming Fabletics customers can take a short quiz to find the workout or athleisure gear that is best for them, and the Fabletics website provides information about subscriptions and style recommendations as well. For more information, visit www.fabletics.com.