While traditional brands, especially in the realm of active wear have been defined by the quality of their goods, that is no longer enough to build a truly loyal customer base. Customers are constantly looking for the latest trend and have a threshold for a level of customer service that is higher than ever before. Today’s customer expects not only to receive a quality product but for the “surprise and delight” factor. This factor means customers expect to speak to a real person when they call a customer service line, expect things like free returns and even so far as to feel like they are a part of that brand through social media.
In a recent CNBC article, Kate Hudson spoke about how her company, Fabletics, is doing just that, and more. Fabletics has been around for three years and in that time has generated $250 million in sales – a huge feat for a startup that is on par with the success of brands like Apple and Uber. The athletic wear company specializes in a subscription model where users receive a monthly package that includes one fun and trendy workout outfit tailored to their personal preferences.
Hudson founded this company in a time when there was a massive gap in access to well-made athletic apparel that was also reasonable affordable to the modern consumer. At the time, the market had only extremely high-priced athletic wear and pieces that were more affordable, but that focused on functionality and not style. She saw this opening in the market and launched Fabletics at a perfect juncture.
In the CNBC article, Hudson also spoke about the importance of taking risks and utilizing big data to reach consumers. While the company acknowledges it isn’t all about big data, the reverse showroom technique they utilize has definitely been a key factor in their success. Instead of inviting buyers to a traditional store, the digital showroom gives users a custom experience and invites them to view the product and become a part of the brand without ever having to enter a store.
One of the keys to the reverse showroom success is Fabletics’ LifeStyle Quiz. This quiz ensures that every user takes advantage of an algorithm that matches their unique taste in working out and styles with the clothing that will be best for them. This cuts down on return rate and increases customer loyalty, contributing to the brand’s booming success.