The power of the crowd is playing a role in customer purchases that just keeps on growing. As highlighted in a recent HuffPost article, the top brands are now all realizing the power of the crowd and are tapping into it to increase sales and revenue. This is a shift in customer behavior that has grown even more apparent in recent years, and according to everyone’s predictions, this shift will become even more prevalent as the years go by.
Fabletics is one company that is leveraging the power of the crowd. It launched in 2013, and since then has seen a growth rate of over two hundred percent. Shawn Gold, who is the Corporate Marketing Officer of Fabletics’ parent company, Techstyle Fashion Group, attributes this unprecedented growth rate to their leveraging the power of the crowd.
The power of the crowd refers to the power of online reviews in the current age of shopping and commerce. It applies whether or not your business sells things online or offline, because people always search for reviews and ratings before they buy something, even if it is in a store. Sites such as Trust Pilot and Yelp are places that people go to, and they trust the reviews they see on there.
How much do people trust online reviews? A study by BrightLocal revealed that a whopping eighty four percent of people trust online reviews as much as they trust a recommendation from a family member or close friend. They do this study every year, and the percent of people who trust online reviews only grows each year. The founder of Trust Pilot said that research shows that trust in brands is at an all time low, and that people are trusting reviews from other customers rather than the marketing and advertising put out by brands.
Another reason why the power of the crowd is so powerful is because of the frequency of the research that people do online. Over half of the people who took part in the research said that they do online research about a product at least once a month. This is twenty three percent more than last year, which shows that the rate of how often people are looking for reviews online is rising very quickly.
Other companies are looking at Fabletics’ success and are realizing the power that is hidden in the crowd. L2, a research group, found that seventy six percent of the top brands are now featuring online reviews and testimonials on their site. The number of overall brands which include reviews on their site has increased by seventy percent since 2014.
Fabletics has a great supporter in Kate Hudson. Kate Hudson was the star in Almost Famous, a highly popular film. She has been with Fabletics since day one, helping them develop their marketing strategy and giving them ideas to help them fuel their growth. She is a big supporter of the Fabletics model, and many believe that she is the reason why Fabletics managed to be so successful.