Online shoppers, as well as traditional shoppers are technically savvy today. The world of buying and selling has been transformed with the power of the internet and the education of the customer. Crowdsourcing has become the new buzz world in the retail world. The power of reviews and customer input has changed the way companies do business. Fabletics, a company started in 2013 has learned the importance of review driven websites and customer focused approaches.
Companies who recognize the latest trend in review centered websites are succeeding. Fabletics, co-owned by Kate Hudson, is growing at an amazing speed. This active wear company has increased by more than 200% since it started which equals out to over $235 million dollars and more than 1 million members.
Fabletics has capitalized on the secret of membership to support customer loyalty. This company uses surveys to get to know the customer and then sends special orders to fit their needs each month. The importance of positive reviews is not lost on Fabletics as they promote the customer feedback as one of the most important parts of their website.
How does leveraging the crowd work? Fabletics, along with other successful businesses know that positive reviews can drive increased traffic, customer purchases and improved customer loyalty. Customers today lead digital lives and respond positively to this type of marketing. 84% of customers say that they trust online reviews just as much if not more than personal recommendations from people they know.
Traditional trust of brands or companies is at an all-time low, as shoppers read and believe the reviews on the website. This crowd feedback is a crucial element in business success. One half of those customers surveyed research a business at least one time a month. 50% read review feedback regularly which is up 50% from a year ago. An amazing 60% said that a negative review would probably cause them not to use a company or buy a particular product.
Crowdsourcing or leveraging has shown the most dramatic growth in the factors affecting customers. Companies, such as Fabletics, who are growing have a plan that addresses the need to leverage the crowd. They capitalize on promoting surveys and published results that potential customers have easy access to. In a recent holiday survey, online users said that only about 33% were affected by price comparisons while a huge percentage, over 65% were searched for customer related reviews. This trend shows that customers value reviews over price differences!
Fabletics knows that leveraging the crowd drives revenue and customer loyalty. This company is focused on being transparent and customer focused and it is working for them. The online company is growing and following up with more and more traditional brick and mortar stores. Trustpilot, one of the biggest review sites has 20,000 new reviews each day. Fabletics recognizes the importance of having its name and products in positive reviews on such sites. With 85% of sales coming from repeat customers, companies have to use every resource to leverage the crowd.