How Fabletics Used the Power of the Crowd to Get One Million Paying Members

Why are successful brands leveraging the power of the crowd? A recent HuffPost article gives us an inside look into why these companies are doing it and how much success they are having with it. For example, Fabletics, one of the most popular fashion design companies, has grown at a rate of over two hundred percent since it first launched a few years ago. Its director of corporate marketing says that it is due to the power of the crowd.

 

The power of the crowd basically refers to online reviews. People like looking for reviews that describe what other people have to say about a product before they purchase the product themselves. It is known that a negative review may discourage a person from making a purchase, while a positive review greatly influences the chances of a purchase being made.

 

Fabletics obviously is using online reviews as their business strategy, and as we can see, it is a highly recommended strategy to have. The power of the crowd will boost your revenue and increase sales and growth. First of all, it boosts your online rankings in the search engines. Two studies were made on this topic by MOZ and The Local SEO Guide. These studied clearly showed that positive reviews have the ability to boost your organic search engine rankings. This should cause your ears to perk up if you are involved in SEO. It is especially important for local SEO. It greatly increases the chances of you appearing in Google’s pack of three companies at the top of the search results that includes three local businesses. Being in that pack will increase your customers. This is not limited to Google. If you sell products on sites such as Amazon or even Walmart and Target, then having reviews on your product will make it rank more for searches done on those sites. This includes buyer traffic, or people who are willing to pay money for something that they need.

 

It also increases revenue. A study by BrightLocal found that just including reviews on your landing page will increase the conversion rate by seventeen percent. This is because around three quarters of consumers say they feel ready to move on to the purchasing process once they read positive reviews and testimonials online.

 

Another reason is because online reviews bring repeat customers who will buy from you over and over again. That is one reason why Fabletics has over one million active paying members. They are very responsive to online reviews, and they have over thirty thousand reviews just on Trustpilot alone. In fact, Fabletics’ head of marketing says that around eighty five percent of their revenue comes from repeat customers.

 

Kate Hudson has gone from Almost Famous to Fabletics Greatness, according to a recent Forbes article. She was the star of the film Almost Famous, and she is a big supporter of Fabletics. She is involved with the top decisions there, and she has been a major factor in driving their success.