User-generated content (UGC) can be found all over the internet, from customer reviews to images on social media. Brands are using this content increasingly on their eCommerce websites to build trust within the community and help reach new potential customers.
What is User Generated Content (UGC)?
User-generated content (UGC), or content created by visitors and users of platforms rather than brands, has become a key part of the marketing strategy for brands in recent years. Over the years, brands have learned that customers trust information more when it comes from real people like them. In fact, consumers are more likely to view user-generated content as more authentic compared to content created by brands.
As per a survey, The State of UGC 2023, 86% respondents stated that they are more likely to trust a brand that publishes user-generated content over influencer marketing.
Today, loyal customers are regarded as a great source of user-generated content (UGC) for brands because they already love the brand and are strong supporters within its community. UGC is now like a personal recommendation, as people trust recommendations over traditional ads. It can be compared to what was earlier word of mouth.
Benefits of User-Generated Content (UGC)
User-generated content gives brands a powerful advantage because it comes directly from their customers. Some benefits of user-generated content include:
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Builds Trust with Customers
The rise of digital media presents an excellent opportunity for brands to grab attention and stand out. As audiences become more perceptive, there’s a compelling chance to engage and win over buyers.
People are talking about brands on social media. They’re comparing products and listening to peer recommendations about what to buy. Using UGC can help persuade customers who are undecided about a brand.
Lately, customers have unlimited buying options, so brands need to improve their standing by demonstrating their reliability. This is crucial as customers want to know they can trust what they buy from the brands.
As real customers create UGC content, they give it a genuine and unfiltered quality. Customers, brand loyalists, and employees are the most vital sources of UGC content for brands. Ignoring such content in a brand’s marketing efforts would be a significant oversight.
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Increased Conversion Rate and Revenue
This authentic customer communication provides significant help to increase eCommerce revenue. Reviews shared on social media have a higher conversion rate than organic social traffic.
UGC can also affect SEO by improving the amount of unique, high-quality content on a website. Search engines like Google favor websites that regularly update their content and have a lot of relevant, informative content.
Customer reviews and ratings, a form of UGC, can help increase the unique content on a website. This increase can, in turn, improve the website’s search engine rankings and drive more organic traffic to the site.
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Brand Loyalty
Creating user-generated content helps people feel like they are part of a brand’s community, which is important for increasing brand loyalty and affinity. Consumers enjoy being part of something bigger than themselves, and UGC allows them to do just that.
UGC also starts conversations between a brand and a consumer. This level of brand interaction helps build and grow an engaged community. Furthermore, sharing audience content also helps develop and deepen audience-business relationships, driving more brand loyalty.
Also Read: How the CISO and CDO Collaboration can increase Brand Loyalty
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Social Proof
Brands are working harder than ever to establish themselves as trustworthy, and social proof is one way to do that. Social proof is a psychological phenomenon that makes people want to do what others enjoy.
Social proof is one of the most important psychological triggers in marketing. Customers want other loyal customers to affirm and validate their purchases, and nothing else achieves this like UGC can. The advantage is that brands can get their customers to do the legwork for brands for half the time and the resources.
UGC is the perfect example of this. When potential customers see existing customers happy with the product, they’re psychologically more likely to try it themselves.
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Content Curation
UGC content doesn’t have to be limited to social media marketing. It can also be used on other channels.
If brands can encourage and curate customer content regularly, they instantly lift the burden of constant content creation. Each time a follower tags a brand and leaves positive feedback or asks a question, brands can use customer content to their advantage.
For example, UGC images can be added to a cart abandonment email to help nudge the prospective buyer to purchase. Brands might also add user-generated content to key landing pages to help increase conversion rates.
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Cost-Effectiveness
Using marketing tools and paying for their subscriptions can strain marketing budgets. However, asking their customers to share posts of them enjoying the product costs nothing on average.
It is a cost-effective way to grow business and add variety to the content. Brands don’t need to spend a lot of money on expensive advertising agencies or flashy campaigns.
UGC allows brands to connect with their audience, which is key for business. Most people will be excited to be featured on media channel. UGC is often a more cost-effective and manageable option for smaller or new brands than investing in more extensive brand awareness campaigns.
Conclusion
In the competitive world of online business, brands benefit from their customers’ feedback, reviews, and attention. This feedback is important for brands to understand that their customers value their products or services, and it’s also vital for convincing potential buyers to choose a particular brand. As a result, marketers find USG valuable because it can boost sales and persuade people to make a purchase.
Authentic, consumer-generated content allows brands to save on marketing production costs and build stronger, more profitable connections with their target audience. Using UGC as part of a broader omnichannel marketing strategy will help achieve better results.
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