Fabletics’ Unique Marketing Strategy Causes Extreme Growth

The latest trend in customer purchases is to follow the power of the crowd. User reviews are now an important part of the purchasing decision for many consumers. For brands, it is important to leverage this power of the crowd in order to increase revenue. Many brands understand this concept. Fabletics is a great case in point.


Fabletics, which was started in 2013, already has over one million active paying members. In fact, it has seen a growth rate of over two hundred percent. Shawn Gold, the director of marketing at Techstyle, which is the parent company of Fabletics, says that this growth rate is due to their leveraging the power of the crowd.


You see, Fabletics has over thirty thousand online reviews on TrustPilot alone! They have placed a large emphasis on responding to these reviews and encouraging them.


Why do online reviews matter so much? For one, it increases the possibility of a customer making a purchase, as long as the reviews are positive in nature. This is because eighty four percent of people trust online reviews as much as they would trust a recommendation from a close family member or a friend, according to a study by Brightlocal. In addition, fifty percent of the respondents said that they do research online on a regular basis. It is common for people to do research about products even when they are buying them offline. Another study showed that over sixty five percent of the time, people doing research about products in a store are not looking for price comparisons, but rather for online reviews.


It is important to get reviews that are positive in nature. Over sixty percent of people said that seeing negative reviews about a product can cause them not to buy. This shows just how powerful the power of the crowd really is.


Reviews are also very helpful when it comes to getting repeat customers. As mentioned, Fabletics has over one million active paying members. This is no simple matter. When people see positive reviews about you, their opinion is influenced for the better. They are more likely to buy from you a second, third, and fourth time. In fact, Fabletics gets eighty five percent of their revenue from repeat customers! Seventeen percent of their new customers are referrals brought in by existing customers. This shows how positive reviews can cause people to spread the word about your business. In fact, according a study by Yelp, just a one-half extra star rating led to restaurants selling out nineteen percent more often.


Kate Hudson is the genius behind Fabletics’ marketing strategy. You may have heard the name before. If it sounds familiar to you, it is because she starred in the film Almost Famous. She got on the Fabletics bandwagon at the beginning, and has led the company to see tremendous growth. Kate Hudson has helped Fabletics improve their relationships with their customers. In addition, she was instrumental in helping them get a top rating with the BBB.