Online shopping has revolutionized the business world in recent times. The increased digitalization of business activities means enterprises have to look out on how they are being perceived online. As such, any lousy commentary or rating will affect a company negatively. It is effortless for consumers nowadays to research a product or service. This feedback in turn, influences the decision-making process of people. The effect on the purchase decision is called the power of the crowd. Unlike in the past where brand name and quality influenced consumer choice, this time round customer feedback has become a significant factor. Brands have noticed this trend and are employing marketing strategies to reap positively from it.
Fabletics is an athleisure wear brand that started up as an e-commerce company that has snowballed within a short time. In just three and a half years, it has over one million active subscriptions and reports revenues of over $235million. Customer experience is critical for them being an online store, to attract new customers and retain their current ones. One of Fabletics success points is in the use of customer or crowd reviews. Customers now trust reviews as much as they would believe in recommendations from friends. Majority of people agree that a firm’s reputation is an essential consideration before engaging in business. Crowd-sourcing encourages the brand to stay in check by maintaining high levels of transparency, and in return, this creates loyalty to a name. With the review option, Fabletics can understand customer preferences better and can come up with new ideas and recommendations. This interaction fosters a healthy relationship that in turn helps to retain customers.
One of the people who has championed for Fabletics to improve on its customer service is Kate Hudson. Together with her business partners Adam Goldenberg and Don Ressler, they have provided excellent customer service that has grown Fabletics to what we know today. Kate, who is an actress by profession, shared the same dream of having an affordable, stylish and quality athleisure brand in the market. She agreed that yoga pants should be accessible to lure more people to exercise and stay fit. To address the concerns about most of their items being sold out, Kate and her team upgraded their data system to ensure they always have an accurate inventory. This upgrade affected the customers positively and even improved Fabletics ranking in Better Business Bureau.
One of the factors that stands out for Fabletics’ success is its data-driven technique to satisfy customer needs. Using the response from customers, the manufacturing section can come up with designs and quality that the customers appreciate. With this data, even production is streamlined as they can determine which models to begin with. Kate Hudson‘s decision to team up with the already established TechStyle Fashion Group saved her big time in regards to funding, resources and the required experience in the field. This partnership enabled sharing of resources, efficiently cutting down costs. With over 22 retail stores, Fabletics is set to expand its market share, and Kate has emphasized on the use of crowd-sourcing positively to help achieve this.