Understanding crowdsourcing is a relatively easy thing for business professionals. For common people, it’s gathering information about a particular subject from numerous sources and concluding a final decision. That’s what people are effectively doing with their daily shopping, particularly, online shopping. Today’s consumers are researching businesses and reading online reviews as part of their decision-making process.
While online reviews, or user reviews, don’t seem like a good source of information, they actually are. User reviews come from people who’ve already had dealings with the company. People trust these reviews just as much as personal recommendations from friends or other they know.
According to Peter Holten Muhlmann, CEO of Trustpilot, people no longer trust traditional marketing and advertising. There have been too many instances where a company took advantage of a naïve, trusting customer. There’s more safety in online reviews. The savviest brands figured that out a long time and are leveraging it to everyone’s advantage.
Now, it seems bizarre to hear about people who don’t use some form of crowdsourcing to determine final purchases. Everyone’s using them nearly every time they go shopping. Most people regularly research a business, at least once a month. They’ll read user reviews almost every time they’re thinking about buying something.
The success positive reviews can bring a company is why so many advertisements use reviews in their promotions. Seeing a review along with advertising is a great way to earn repeat, loyal customers. The review craze even created a new sector in the e-commerce economy.
There are more reviews options than ever because of companies like Yelp and Trustpilot. Trustpilot, by far, is the largest review-oriented site in the world. Currently, it has a retention rate 95 percent and gets over 20,000 new visitors to its site every day. It has more than 30 million reviews about 160,000-plus businesses globally.
One business really cashing in on this craze is Fabletics. Fabletics became one of the most popular fashion brands in the world because of user reviews. Thanks to its loyal members and fans, Fabletics generates more than $250 million in revenue a year.
The company’s only been around for four years, but it’s quickly dominating a market dominated by brands like Under Armour and Lululemon. Morgan Stanley expects the ‘activewear’ movement to generate $83 billion in 2020.