Ever since entrepreneurs began business enterprises, one thing was known for certain. A successful business needs successful advertising. However, what do you do when the traditional methods of advertising no longer work? What do you do when consumers no longer trust what you have to say about your product? When you face this dilemma it becomes imperative that you leverage the power of the crowd.
The “power of the crowd” refers to the recent phenomena where consumers read and trust genuine product reviews just as much as if it was word of mouth from a friend.
Increasingly, positive reviews, or negative reviews for that matter, are playing a direct role in a company’s bottom line. Studies have shown that consumers will not purchase a product that has negative review from fellow consumers but are exponentially more likely to purchase a product that has more positive reviews.
The company, Fabletics, which has Kate Hudson as a celebrity sponsor, has learned not only the truth of this reality, but they also have learned how to harness it for their own benefit.
When Kate Hudson first co-founded Fabletics, they were faced with several obstacles right from the get go. Firstly, Fabletics spend over $300k on a product that had to be discarded because its quality was not up to the company’s standard. Secondly, the products that were up to standards sold out quickly, so quickly in fact, that the company rarely had inventory at all. This lack of product availability infuriated consumers and word of mouth soon trashed the company and trust went to an all-time low. How did Kate Hudson solve this problem?
Kate Hudson began to deal with this problem with a three pronged approach. Firstly, the company made communication a clear priority. They upgraded their customer service department so that they could better anticipate and plan for consumer demand. With this knowledge in hand they were better able to keep inventory in stock and the right amounts for the consumer’s needs.
Secondly, Kate Hudson had Fabletics begin to purposefully collect, manage, and respond to several thousand reviews so that the consumer knew Fabletics listened to them and cared about them.
Thirdly, Kate Hudson decided that Fabletics should not go it all alone. The resources needed for hiring your own Facebook expert, data engineers, and web builders was astronomically. Instead, she partnered with Fabletics’ current parent company, TechStyle Fashion Group. Together, they have been able to empower women to be all they can be and to reach the physical potential each of them deserves.
To better help each lady know what gear she needs, Fabletics offers an exceptional Lifestyle Quiz. This quiz is taken in 6 easy steps. The questions range from how active you are to where you prefer exercising to what kinds of exercises are best for you. Each question narrows down your options and begins to show you which gear best fit your needs as you continue the journey of reaching the best you possible.