Fabletics by Kate Hudson has become an increasingly popular brand of athletic wear. Gone are the days of word of mouth when it comes to expanding brands. Thanks to social media such as Yelp and Facebook, consumers trust the brand based on quality and positive customer reviews. Fabletics launched in 2013 and has grown by an astounding 200%. The company has made over $235 million in revenue. They credit their success from positive feedback by their customers posting their experiences online. Online reviews are a major factor these days when it comes to advertising. Consumers focus more on online advertising and reviews compared to expensive television advertisements. Shoppers have lost trust in traditional advertising and marketing. Reading positive or negative feedback online from real people can make or break a brand. A successful company will take this into account and leverage it.
Studies have shown that 60% of consumers will not purchase a product if there are several negative reviews. Over 50% research businesses on a regular basis before making a purchase. Now-a-days customers are basing their decision more on user reviews then product comparison. Not only are good reviews beneficial to driving sales, positive reviews also improve search ranking. The more reviews posted online, the higher your business will show up in Google rankings, Yahoo, Bing etc. BrightLocal did a study that showed 74% of people would pursue purchasing a product based on reviews shown on the landing page. Positive reviews are also responsible for garnering repeat business.
Fabletics is a customer focused business that manages, collects and responds to consumer online reviews. Currently they have over 30,000 reviews and an average trust score of 8.2. Yelp reviews have grown by 26% compared to last year. Trustpilot is the largest review site with over 30 million reviews of more than 160,000 businesses. Consumer’s trust not only Fabletics word but what people are saying about it as well. Each day Trustpilot receives over 20,000 new reviewers and Fabletics relies on this. Fabletics believes that other companies are not as customer focused as they are. It is important to see your brand through your consumers eyes in order to become a success. Fabletics takes their customer’s feedback into account to help create better products. They believe it is important to recognize what their consumer wants and in turn offering products tailored to their circumstance and taste. Using Kate Hudson as their founder and celebrity spokesperson in their ads is an added bonus.