Trust is very important to running a successful business. There mustn’t only be trust within the workforce, but customers must be able to trust their favorite brands. Without that trust, customers will seek out other options. Recently, the trust between customers and companies was broken.
When e-commerce offered companies a faster way to sell to customers, some took advantage of the anonymity. They began selling overpriced, badly made products. Customers, fed up with being taken advantage of, began posting their opinions about every company they dealt with. This created the consumer behavior now known as crowdsourcing reviews.
People no longer trust traditional marketing and advertising. They do trust online reviews written by their fellow consumers. Online reviews, or user reviews, are the biggest part of anyone’s decision-making process these days. Too many bad reviews can persuade a consumer to not buy from that company. This has drastically changed the marketing dynamic.
People rely so heavily on user reviews; dozens of review-centric companies were created to satisfy this need. Companies like Yelp and Trustpilot are among the most used. Trustpilot is actually the largest review site in the world with a customer retention rate of 95 percent.
According to Trustpilot, they get 20,000 new visitors to their site every day. Most of these visitors are there to research a company and its products, but some are there to leave reviews. Companies like Trustpilot are helping to empower the crowd. The more powerful the crowd is, the more customer-focused companies have to be.
Before online reviews were used to determine high-value brands, companies could lie about their brand. Now, they have to be more transparent, and customers decided what their brand is. This has caused some brands to cheat and post their own fake reviews. Authentic reviews can boost any company’s bottom line.
Savvy brands like Fabletics have figured out how useful reviews can be. Fabletics credits its global success to user reviews. Without its 20 million social media followers and 1.2 million monthly members, Fabletics wouldn’t be successful. Their customer loyalty rate is also higher than most because of their affordable prices.
Activewear isn’t a new clothing trend, although it’s still growing like one. Last year U.S. consumers spent $44 billion on activewear. Fabletics plans on cashing in on that while people are in love with the brand.