Recently, people’s decision-making process got a boost in honesty. Previously, people used traditional advertising and marketing to determine final purchases. This created an unfair bias that favored companies. In fact, as online shopping began more popular, a lot of companies first viewed it as a chance to get over on their customers.
That abuse of power shifted customer behavior and opened the door for the power of the crowd. Now, people use online reviews to determine final purchases. There are numerous sources that people use during their regular researching of companies, but online reviews hold the most importance.
One study performed by L2 showed that people look up reviews while shopping more than they compare prices. This means that in most cases, people care more about product information than they care about pricing. This huge shift created a rift in the economy. Some companies refuse to acknowledge the power of the crowd, leading customers to seek out other options.
Smarter brands developed review-centric marketing strategies, embracing the power of the crowd. A lot of companies use reviews on the sites and in their promotions. BrightLocal discovered that more than 80 percent of people trust online reviews as much as personal recommendations.
A lot of businesses use reviews in offers and promotions. When they place real reviews next to their own advertisements, it increases customer retention and ensures repeat customers. The only downside to crowdsourcing becoming so popular is companies producing their own fake reviews.
For authentic reviews, people look to websites and apps like Yelp and Trustpilot. Since last year, both these companies experience an increase in visitors and app downloads. Trustpilot reports 20,000 new visitors to their site every day. Sites like these are ensuring that the power stays with the crowd.
The crowd can easily affect any market. The activewear market is currently one of the most explosive movements in the country. Last year, U.S. consumers spent over $40 billion on activewear. That number is predicted to double within the next two years. This multibillion-dollar movement is being led by millennials.
Fabletics is one brand cashing in on the millennial craze. Fabletics offers on-trend fashion at affordable prices. The brand also has a culture about it that customers just love. To date, Fabletics generates $250 million in revenue every year.