How Consumer Reviews have Influenced the Growth of Fabletics

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.

Kate Hudson’s Fabletics Battling Amazon for Top Spot

To understand how coveted that top spot is in the online apparel market, you need to know this is probably the most competitive of all niches. With thousands of clothing retailers all fighting for the same customer, Amazon is grabbing 20 percent of all the sales in this space. As impressive as that sounds, Kate Hudson’s Fabletics is making waves of their own as they are bringing in well over $250 million in sales of women’s apparel in only three years. It appears there actually is a serious threat to the top spot in the online clothing market.

 

Hudson talks all about her athleisure brand and its success by explaining it all comes down to just a couple things. On the one hand you have a unique membership platform, then on the other you have a sales process known as reverse showrooming. These are not new sales practices, yet they work rather well with Fabletics. So we take a look at the Fabletics store in the mall and we see something very strange happening. There is no pressure from associates, and women are more relaxed and enjoying all the perks of being Fabletics members. These women are enhancing their benefits by taking a lifestyle quiz, window-shopping, ad trying on everything they can inside the stores.

 

There is a very good reason why these shoppers are trying on all the clothing in the mall. Each item that fits is then uploaded to the online store where the inventory is much bigger. When you visit the e-commerce site, now you can base your purchase on a size you know fits you perfectly, so you wind up buying more and more pieces. The convenience of knowing the size of a brand in advance eliminates doubt, and you can buy on impulse as long as you like.

 

In contrast, look at how this exact same sale takes place at Amazon. The customer finds a pair of yoga pants they love, they assume the size should fit, they pay for shipping, and they are too tight when they arrive. The piece is shipped back, the new size is shipped, and weeks have passed before the right piece finally can be worn to the gym. The thrill of being the first in your gym with those new arrivals is lost on the fact it took a month just to get the correct sizing.

 

Kate Hudson’s Fabletics customers get more in the way of benefits. Online orders are shipped for free, there is deep-discounts on apparel, and you even get your very own shopping assistant. Your assistant uses the lifestyle quiz answers to help them select a new item each month and places it in your shopping cart to consider the next time you visit the e-commerce site. Once a month you have an assistant pampering you, giving you more reasons to shop. Amazon and their top spot in the online clothing niche could be in for real trouble if Kate Hudson’s Fabletics has anything to say about it.

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