How the Power of the Crowd Has Worked Wonders for Fabletics and Other Companies

The power of the crowd has been found to be the driving force behind an increase in consumer purchases in many companies. Most customers rely on reviews as they consider them as opinions from people they know. This has made savvy brands to capitalize on this trend and incorporate customer reviews into their marketing strategies.

 

The Impact of User Reviews on Fabletics

 

The TechStyle Fashion Group Corporate Marketing Officer Shawn Gold says the company discovered the power of user reviews or the crowd early enough and has been using it to boost sales. Since the launch of the Fabletics in 2013, revenue has been increasing steadily to over $235 million to date, and the number of paying members to over one million.

 

But Why Are Customer Reviews so Effective in Driving Sales?

 

Trust

 

Due to rapid change in consumer behaviors where most are buying things online, customer reviews have become critical. Before making purchases, most clients are going through customer reviews before making the final decision. A study by BrightLocal has shown that 84% of people take online reviews to be true.

 

Regular Use

 

There has been a sharp increase in the number of people who research a business online in a given month with about half of them admitting to reading customer reviews frequently. Negative reviews have been found to deter 60% of potential customers from contacting with a company.

 

Embraced by Companies

 

Throughout the years, the number of firms having customer reviews feature on their website has increased significantly. A survey by L2, a research company, shows about 76% of companies use this feature to drive sales.

 

Benefits of Positive Customer Reviews

 

Positive reviews have been found to drive sales and revenue in a company. Furthermore, they improve a company’s search ranking. Positive reviews also boost the number of repeat customers in a business.

 

Kate Hudson’s Morphosis from an Upcoming Actress to Fabletics Greatness

 

An afternoon at the Beverly Hills Hotel with Kate Hudson on the red carpet is different from what you would expect. Those present here are not celebrating the launch of a moviebutcollaboration between Fabletics and Demi Lovata, a pop superstar. The musician says he loves Fabletics for the cute clothes and what they stand for; inspiring and empowering women.

 

In their quest to have an athleisure brand in their company, TechStyle Fashion Group founders Don Ressler and Adam Goldenberg found a perfect partnership in Kate Hudson. According to the Fabreticspresident Gregg Throgmartin, Kate was the chosen as she is approachable, has an active lifestyle, and is less serious about herself. Since joining the company, Kate has been heavily involved in activities such as choosing the social media strategy among others.

 

Kate regularly uses her Fabletics gear, unlike most celebrities who rarely seen using the products they endorse. She is unique in that she only uses something if it is authentic to her. The company’s desire to have the best products at a low price was not an easy to achieve, and the company was forced to delay its launch for six months after delivery of inferior quality products by the supplier. Would you like to find out the Fabletics gearsbest for you? Take a Lifestyle Quiz.

Fabletics Is Continuing To See Steady Growth

Fabletics has seen tremendous growth in the last three years, having netted over $250 million since their emergence in the e-commerce market. Fabletics is a subscription service that operates much like parent company JustFab. They rely mostly on their subscriptions from people that love their athletic wear and want the convenience of being able to shop from home while seeing increased savings. Each month, customers get a boutique that is picked by in-house stylists. The customer is allowed to choose one item, which is covered by the monthly subscription fee. Fabletics has also incorporated a unique marketing method that is allowing them to compete with giants such as Amazon. They are building brick and mortar locations in which customers can try on the clothing and see it in person. They do not get the same deep discounts they would if they belonged to the subscription service, however, but they can purchase an item to get a feel for the quality and style. In most cases, this reverse showroom technique can convince skeptical shoppers to sign up so that they too can get the incredible discounts.

 

Fabletics is not only reverse showroom techniques to help drive business, but they are also gathering celebrity endorsements from people such as Demi Lovato. They are also heavily focused on data gathered from their target audience. Fabletics is also highly focused on improving customer satisfaction scores so that they can continue to grow. Kate Hudson works closely with the owners of TechStyle as well as the President of Fabletics to ensure that they are delivering a stylish and high quality product that is going to create demand. She is involved in everything from their social media campaign to designing new styles to offer to their customers.

 

Fabletics is enjoying steady and rapid growth even though the retail industry as a whole has been in decline over the last few years. Their blend of using real-time data and delivering excellent products and customer service have created a huge demand for their products. They are projected to continue to see this steady growth in the years to come because they continue to use innovative, cutting edge strategies that have customers coming back for more. If you haven’t signed up for Fabletics yet, now is the time to start reaping the benefits of being a subscription member. Simply take the style quiz and get started building a fantastic athleisurewear wardrobe.

EOS Lip Balm Shocked Its Makers

The EOS lip balm company has achieved some amazing things since it introduced itself to the beauty world in 2007. One of the things that it did since that faithful day was steal the hearts of celebrity role models around the world. Part of the reason that EOS is as successful is because of the celebrity equation. For every celebrity that uses EOS lip balm, there are several million Facebook fans that use it, too. The company’s sales skyrocketed when female celebs started personally endorsing the products.

The creators of EOS lip balm probably had no idea that they were going to become a hit in what seemed like only a few days. Their primary goal was to manufacturer a beauty product that would be fun to use instead of boring and routine. The plan worked more than anyone expected. Billions of people have purchased the lip balm. In fact, so many people have bought the lip balm that the company’s profits reached $250 million. The success was a pleasant surprise for cofounder, Sanjiv Mehra. Mehra originally just wanted to have some fun and cause a buzz inside of the beauty stores, http://www.ulta.com/brand/eos. Instead, an entire empire came formed.

Mehra’s plan was to shift the focus of lip balm back to women, but that wasn’t the only part of the plan. Once this special lip balm item got attention, it would then become part of a woman’s everyday regime for looking good. The creators never knew that their item would blow up so much that Christina Aguillera and Kim Kardashian would be huge users. Companies like Chapstick, Carmex and Blistex truly got burned when this company started gaining traction. EOS has surpassed both company and only has to worry about Burt’s Bees at this time.

For Adam Goldenberg, Experience Is The Best Education

Adam Goldenberg has a long, extensive history with entrepreneurship and start-up companies. One look at him, though, and you wonder how somebody so young knows so much about starting and building companies. The answer is easy, he started young. Like, 15 years old young.

Young Entrepreneur
When Adam Goldenberg was 13 he started an online bulletin board service, two years later he turned it into an online gaming service, Gamer’s Alliance. It became so popular it was acquired by Intermix Media. Even though he was only 18 at the time, Adam was hired by Intermix and he eventually became the COO of the company. At 20, he was the youngest COO of a publicly held company.

Partnerships Are Formed
While Adam Goldenberg was at Intermix, the company acquired another business, Fitnessheaven.com. That company was started by Don Ressler and he and Adam soon became friends and co-workers. Together, the two of them developed Alena Media an e-commerce and advertising company. Alena generated millions of dollars and was the only profitable part of Intermix. In 2005, News Corp acquired Intermix but despite the profitability of Alena, the company was ignored.

Disappointed with the response of News Corp, the two left Intermix for bigger and better business opportunities.

Read more:
24 questions with JustFab Co-CEO Adam Goldenberg
JustFab wants to be the next H&M

New Ideas, New Opportunities, New Companies
The young and aggressive entrepreneurs worked with former employees of Alena Media and together they launched Brand Ideas, which later became Intelligent Beauty. Through intelligent hiring, creative leadership, and a lot of dedication Intelligent Beauty launched Sensa and Dermstore. The two businesses were highly profitable. In 2008, their hard work was rewarded with $43 million of funding.

In 2010, Intelligent Beauty started JustFab, an online fashion subscription retail service. Based on the solid business model and the experience of Adam Goldenberg and Don, the company received $33 million from Matrix partners. The business was immediately successful and in April of 2012 they received their six millionth subscriber. This was followed by another $76 million of investment from Intelligent Beauty, Rho Ventures, Matrix Partners, and Crossover Ventures.

The company continued to expand to Europe and has over 3 million subscribers in Germany, France, Spain, and the UK. They started FabKids for children’s fashion and Fabletics for athletic wear. In September 2013, they opened their first storefront operation.

So with all this success, Adam says if he could give his younger self any advice it would be, “Ask more, tell less.”

Learn more about Adam Goldenberg on Vator.TV