Brands that are savvy and are tuned into the behavior of customers are starting to pay attention to the power of the crowd. Fabletics, for example, has leveraged the power of the crowd to boost their performance. They have achieved a growth rate of over 200% since 2013. Fabletics and other companies know that consumers are relying on online reviews to research various products and companies and make purchasing decisions based on that research. Consumers trust these online reviews, and by having great online reviews a company can get more sales and increase their customers.
As more and more people are connected to the internet through their smartphones, the reviews that are posted online by other consumers are playing a larger role in the purchasing decisions of other customers, who now trust these reviews in large numbers. In effect, they are outsourcing the research to other customers who have already purchased the product that they are considering purchasing. Reviews that are posted online have as much weight as recommendations from people they know. This is according to a study by BrightLocal.
Customers see safety and trust in online reviews. They mistrust messages that brands are putting out through traditional advertising methods. They are more willing to consider what other customers are saying based on their own experience than what brands and companies are promising in their marketing materials. The majority of customers will take negative reviews into account and possibly not purchase an item they have been considering purchasing, which shows that online reviews do have a great impact on the purchasing decisions of customers. Online reviews are important because many customers are researching products online on a frequent basis. Many are doing it many times a month, and the majority of customers are already relying on online reviews to find out whether they should buy a product or not.
Brands and companies are not blind to this trend. More and more companies are starting to use online reviews and testimonials on their websites and in their marketing materials. Online reviews and testimonials are a very commonplace feature when it comes to sales pages and online marketing. They know that even if they sell their products offline and they distribute it to stores, online reviews still matter. This is because customers who purchase products in stores still go on their phones to search for online reviews about products that they are considering purchasing. In fact, customers do this more often than they do price comparisons in stores.
Kate Hudson was there at the party where people were celebrating the launch of Fabletics. In fact, she got the red carpet treatment. Many celebrities love Fabletics because it empowers women and helps them look better and feel better no matter what their size is. Fabletics does indeed have the goal of being empowering and inclusive. This has helped them grow into a business that is worth 250 million dollars in just 3 years.