Fabletics is One of the Few Companies Successfully Utilizing Review-Centric Marketing

With the advent of the internet, many companies have witnessed dwindling revenues from traditional forms of marketing such as advertising. Traditional forms of marketing are outdated with regards to the modern internet using consumer. In fact, modern buyers believe that ads are designed to dupe them into buying products which are of inferior quality compared to what is portrayed in the ads. Modern consumers trust reviews done on products or services by nonpartisan parties. Although offline reviews are equally important, positive online reviews are essential to modern businesses hoping to survive in a competitive environment.

Many companies have adopted the review centric marketing strategy, but none of them has utilized the strategy as efficiently as Fabletics, an activewear company. Fabletics was founded in 2013 by Kate Hudson, Don Ressler, and Adam Goldenberg to provide stylish, high quality, and reasonably priced activewear clothing. Leveraging review-centric marketing strategy, Fabletics is on its way to becoming one of the leading activewear brands in America and the world. The company currently has operations in over six countries and over six retail locations in the US. Also, the company has over one million paying members, and its revenues are approaching $250 million. The company is estimated to be growing at over 200%.

Fabletics attributes its success to the skillful use of review-centric marketing approach. The company has been responsive to surveys that outline consumer behaviors with regards to marketing. For instance, many studies indicate that consumers regularly use the internet to search for products, services, or companies. Furthermore, studies affirm that consumers tend to trust online reviews just as they would recommendations from close friends. Negative online reviews attract zero sales while positive reviews attract huge sales. Fabletics has established a positive image online. The company is also available for online shoppers at fabletics.com. A visit to their website reveals that Fabletics products are constantly reviewed by famous people who are known to many consumers. For example, Kate reviews some Fabletics’ gear once a month to confirm to customers that the company’s products are indeed of high quality.

Consumer brands wishing to adopt a review-centric marketing strategy will be encouraged to note the following. Many studies reveal that online consumers trust online reviews; BrightLocal carried out a study that showed that 84% of people trust online reviews. The study further shows that over half of those surveyed stated that they regularly research businesses online. What’s more, research firm L2 indicates that 76% of leading consumer brands have reviews on their website designed to drive sales. Positive reviews are important to companies in many ways. For instance, positive reviews bolster increased revenues, customer retention, repeat purchases, and they improve search rankings on search engines such as Google.

Kate Hudson has been an invaluable partner of Fabletics. She is leading efforts to bring onboard other celebrities such Demi Lovato to bolster the company’s growth. The mother of two is now getting known beyond Hollywood. She is a user of Fabletics’ gear, and she encourages other people in need of stylish activewear clothing to try Fabletics.

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Fabletics Physical Locations As A Branch of Brand Experience

Fabletics is opening new physical stores, and in a world where long standing physical stores are losing to online shopping it begs the question, “how are they doing it?”. How is Fabletics succeeding in their brick and mortar store locations when the rest of the brick and mortar retail world is struggling to stay afloat? The answer lies in their approach, and their entire model of business. It is not just a superior product at a good price that is bringing in the customers. Staying with the times, and working their approach based on the newest shopping trends and data science has allowed Fabletics to build a reputable reputation with their current customers, who are their primary customer in the physical locations.

 

Many stores rely on walk ins to come into the store and make a purchase, and they figure that the customers will just come back when they want some more of the product they walked away with the first time. This is not enough anymore to have a successful business, because customers are finding the same products for a better price online. Often times, they are using the physical location of a store to try on a product and assess the look and feel of it before they turn around and look for a better priced product online. This “showrooming technique” is being met by Fabletics with the “reverse showrooming technique”.

 

Fabletics offers a superior product at a lower value, but they are bringing in and keeping their customers with the service they offer as a part of their brand. A $50 monthly commitment buys the customer a VIP service, where a stylist picks out the outfits offered as a suggestion each month based on the customer’s workouts and personal style. This narrowed down selection of outfits delivered to her account works as a personal styling service, and she gets more for her $50 each month than she does at a comparable fashion athletic spot.

 

The typical customer coming in to the stores are already members of the Fabletics VIP membership. They like what they have as a VIP member and are coming into the store to experience a new and exciting branch of the brand experience. For walk ins coming into the store, they learn about the membership while shopping and can sign up right in store after being walked through the benefits of membership.

 

The physical location stores are filled with product that appeals to the customer in that specific location. Fabletics is able to offer this custom tailored selection of products based on data pulled from the website. The stores offer “athleisure” apparel and run tests for new product that is not offered on the website. By offering just the products that specific customer will like it improves the customer’s shopping experience and increases sales for Fabletics. This reverse showroom technique is bringing in the customers already familiar with Fabletics and is giving them more of what they want, and is succeeding in customer satisfaction.