Fabletics Success Strategy: Data-driven Consumer Engagement

Word of mouth is an authoritative source of marketing and advertising. However, as the digital arena grows, more and more people depend on user reviews to validate purchases. Witty brands such as Fabletics saw this shift and used it to their advantage. Fabletics uses much of its resources reading, analyzing, and responding to reviews. Going through reviews helped the company connect with customers and better their brand.

 

Most people research and compare businesses before confirming a purchase. Checking user reviews is a large part of that research process. According to a study by BrightLocal, 84% of people trust reviews as much as they would trust a recommendation from someone close. The study also reveals that 60% of people steer clear of companies with negative reviews proving that reviews have become a substantial part of buying decisions.

 

Great reviews boost sales, repeat customers, and a company’s rank in a search. In fact, 74% of customers move on to the checkout phase after reading and assessing reviews. Additionally, user reviews force companies to be forthcoming, stand by their product, and focus on consumer needs. Fabletics is the perfect example of this.

 

In 2013, Don Ressler and Adam Goldenberg, founders of TechStyle Fashion Group, ventured to start an athleisure brand. They wanted to create quality, stylish, and affordable athletic wear. Ressler and Goldenberg needed a partner and could not settle for just anyone. For their blossoming brand, they wanted someone genuine that would stand by the Fabletics line. They immediately thought of Kate Hudson and needless to say she did not disappoint. Hudson was onboard and involved from the getgo, reviewing budgets, selecting social media strategies, helping with designs, and keeping a close eye on weekly sales to determine what was selling.

 

Within eighteen months, Fabletics earned a top rating with the Better Business Bureau. To date, the company has 1.2 million members, $235 million in revenue, and 22 retail chains with more opening. Hudson and her team at Fabletics used consumer feedback to help the company grow and maintain a following. The Corporate Marketing Officer of TechStyle Fashion Group, Shawn Gold, stated that the key performance indicator is that 85% of sales are repeat customers.

 

One other important factor that helps Fabletics stand out among its competitors is that it is a data-driven company. With hardcore data, the company can analyze what customers are saying, what they like, what they’re buying, and what designs are most popular. The data then creates an algorithm that matches customers with their perfect outfit. Fabletics is a subscription-based company however it is not required to complete a purchase. There is an option to check-out without subscribing. If anything, it is fun (and maybe a little creepy) to take the quiz to see just how much Fabletics gets you.

 

Traditional marketing and advertising have lost some of its potency. While word of mouth still has power, user reviews are just as powerful these days. Companies that want to survive in this new world of advertising should pay attention to user reviews and use them to engage with customers and improve their products.