The purchases that are made by consumers are greatly affected by the power of the crowd. In the current market, most people look at the crowd-sourced reviews to know the products that they purchase. Customers trust the reviews that they read just like personal recommendations that they get from people that they know. Informed brands are currently capitalizing on the new consumer behavior and have based their marketing strategies on reviews. Fabletics is one of the firms that utilize this tactic. The company was established in 2013, and it has had a 200 percent growth. It has over one million subscribers, and its annual revenue is about $235 million. Techstyle Fashion Group’s corporate marketing officer, Shawn Gold, believes that the success of the company can be attributed to its user reviews.
Fabletics has managed to leverage the importance of having excellent reviews to facilitate its growth. It understands that consumer reviews have a direct impact on customer acquisition, clients’ retention, and loyalty. Most people currently leave digital lives, and therefore, online reviews significantly influence an individual’s decision. Customers research about a business before they decide to buy its products. According to a study that was conducted by BrightLocal, 84 percent of consumers trust online reviews just like personal recommendations that they get from friends and relatives. People do not trust the traditional advertising and marketing, and they instead believe in the feedback and opinion of the crowd.
According to a research firm that is known as L2, 76 percent of leading consumer brands feature customer reviews on their websites to improve purchases. Sites that have user reviews have experienced rapid growth in their businesses. Vibes recently conducted a holiday shopping study that showed only 33 percent of store mobile searches were done to compare the price of products. About 65 percent of the searches were to view consumer reviews and various information about a product. Clients also value reviews about the pricing of a product.
Businesses that have genuine reviews are likely to grow their bottom lines. They have high chances of enhancing search rankings, attracting more clients, and therefore, generating more income. Companies that have strategies that involve reviews are likely to have strong customer loyalty, and the many return customers. Positive reviews enable a brand to appear in the top search results on Google. Review websites such as Trustpilot have partnered with Google to assist businesses in bettering their Google Seller Ratings. Research indicates that online advertisements that have Google Seller Ratings get 17 percent higher CTR compared to similar ones that are not rated.
A survey that was done by BrightLocal showed that 74 percent of consumers would proceed to purchase a product after viewing positive reviews about it. According to Fabletics and TechStyle, crowdsourcing has significantly influenced the growth of their brands since it facilitates transparency. The companies are determined to offer products that match the needs of clients by using empathy and data that they receive. All the steps that Fabletics takes are influenced by the opinions of the customers.