According to the Huffington Post, a lot of major brands are now using the power of the crowd to increase sales and improve their brand. One such example is Fabletics. They have used the power of the crowd to increase their growth rate by more than two hundred percent. It now has over one million members. They attribute their success to the power of the crowd and how they leverage online reviews to increase trust in their brand.
The power of the crowd refers to online reviews, whether on blogs or on review sites such as Yelp. It could even be reviews on your own website. The fact is that people really trust online reviews. Research has shown that people trust reviews as much as they trust recommendations from a trusted friend. This is opposed to traditional marketing and advertising. People do not trust what they see on ads, whether online or offline. People feel safe looking at feedback from other people online.
You would be surprised at how often people read online reviews before buying something. You would also be surprised to find out how many people actually do research online before making a purchase. Over fifty percent of consumers say that they read reviews online on a regular basis. At least sixty percent of consumers say that if they see a negative review online about a business, they will be deterred from making a purchase. You may have seen the phenomena of people doing research about a product online even when they are in a store and thinking of purchasing it there. You may be thinking that they are doing price comparisons. The truth is that that is only true around a third of the time! Around sixty five percent of the time, people are not doing price comparisons, but looking for user reviews online. This means that you need to leverage the power of the crowd even if you sell things in a physical store.
Brands get this. That is why so many companies are now leveraging the power of the crowd, just like Fabletics is. More than three quarters of the top consumer brands have reported that they leverage online reviews, according to research done on the matter. User reviews have grown the most. A lot of brands are tapping into this power to build trust and attract new customers.
It’s not just about trust and customer loyalty. The fact is that if you have more online reviews that are positive, your website and brand profiles will get boosted in the search engines. Google sees lots of positive reviews as an indication of how popular and well liked you are. If they think you are popular, they will push up your rankings.
Kate Hudson is a famous actor who supports Fabletics. Not only is she a fan of Fabletics and someone who actively endorses them, she is also heavily involved in the workings of the company. A lot of their growth has been attributed to her and her ideas.