“The power of the crowd” is a term for a new technique used for the marketing of products. It refers to using the power of authentic online customer reviews being prominent on an online sales site. Customers want to know what other people think of a product and so look to the reviews to see what people are saying. Companies that take advantage of this are making reviews central to their marketing strategies.
Fabletics is a company that makes customers reviews a prominent part of their website. The leadership of the parent company of Fabletics, TechStyle Group, says that they have made user reviews to great success. By embracing “the power of the crowd” they have achieved stunning growth. The company launched in 2013 and it already generates more than $235 million a year as of 2017. They said this growth was largely due to their customers reviewing their products very favorably which influences others to give this company’s clothing a shot.
When a new customer joins Fabletics they are encouraged to take a Lifestyle Quiz. The quiz is used by Fabletics to get to know the customer. This includes things such as what type of clothing appeals to them and their sizes. By taking the Lifestyle Quiz the Fabletics website is customized to that customer’s tastes in activewear clothing.
The Fabletics brand is headed by Kate Hudson. TechStyle Group chose to work with this actress because she is considered approachable by people and she is well known as a fitness buff. She says that she lives in activewear and so is very knowledgeable about what works and what doesn’t.
Kate Hudson says that the Fabletics brand is all about selling quality, stylish women’s activewear at a great price. She is involved in all facets of running the company such as marketing, what fashions to stock, and crunching sales numbers to see what is selling and what isn’t. While she doesn’t have a background in business she has been very effective running the company nonetheless.
Like many if not most new companies, Fabletics had its growing pains in the first year and a half. One of the issues that Kate Hudson saw was that communication between the brand and its customers needed to be much better. She went about expanding and improving Fabletics customer service department. She also made sure that inventory levels matched demand much better which definitely improved the customer experience.