Which would you believe more: a static business advertisement or a genuine post from a regular person? Clearly, the latter! This is where authenticity is found. A pushy salesman on the product pages is something nobody likes to see. There are more sophisticated choices available – User-generated content, for instance.
The product you just received is so cool that you want to showcase it on your YouTube channel or make an Instagram reel. This is user-generated content and is quite popular in the eCommerce biz. If you haven’t jumped into the boat, now is the moment.
This blog will discuss user-generated content (UGC) and why it helps businesses boost sales. Let’s talk about it!
What is user-generated content?
User-generated content, also known as consumer-generated content, is unique content created by a brand’s customers rather than the brand itself. After that, it is posted on social media or other websites. UGC can appear in various shapes, such as images, videos, testimonials, comments, threads, podcasts, and anything else that promotes a good or service.
What makes user-generated content so pivotal?
UGC has existed for as long as there has been content. And we have always yearned to voice our opinions. We swarm to contribute to our preferred venues through letters to lovers, novels to readers, and social media posts to followers.
If properly tapped into, UGC can be a wonderful tool for companies. As savvy marketers, UGC has become popular and for a good cause. 92% of customers place greater faith in user-generated, original content than they do in conventional advertising. UGC can save your time and money and improve your image.
But, hold on, there’s more.
Authenticity at its best
It’s a race to the top for audience interest between brands. Consequently, buyers are becoming increasingly choosier about brands they connect with, mainly Gen-Z.
And original content is beloved not only by customers. 60% of marketers feel that effective content must have value and sincerity. UGC from your consumers is the only sort of content that feels real. In the end, people mostly depend on word of mouth. Take UGC as that.
A social marketing strategy based on authenticity is now more important than ever, as customers trust user-generated content 2.4 times more than content produced by businesses.
The customer is the centre of attention
The desire to flaunt is instinctive, and nothing exemplifies this more than the popularity of the selfie on social media. People always need to show their followers that they’re experiencing something extraordinary. There is nothing more motivating than validation.
Recently on Instagram, brands or regular people can collaborate with other people by tagging them in their posts. This drives more visibility and strengthens the relationship between the two parties. This is community-building, something which is beyond materialism on social media. This increases the likelihood that consumers will curate and share more content. In essence, a brand never runs out of content. UGC sharing inspires more UGC creation.
Sends a gesture of trust
It’s no surprise that most individuals are skeptical of marketers or advertising, given the increase in fake news after the global pandemic of 2020.
More than ever, brands must put in more effort to develop a reputation for reliability. Furthermore, 93% of marketers believe that consumer trust in user-generated content is stronger than in brand-generated content, implying that UGC is the highest accuracy for businesses looking to raise their trust rating.
Similarly, people would consult their close ones, and audiences consider UGC a green flag. UGC is like a personal recommendation – by a person to a person. 50% of millennials rely on their shopping decisions on the advice of their relatives and peers.
Builds brand equity
When customers value your product, your brand equity increases, giving your company a competitive advantage.
For any e-biz, establishing a powerful brand is essential because it can immediately influence the cost and demand for your goods or service.
Building corporate image through sustained UGC sharing is a solid strategy. Impartial reviews from customers can increase brand equity and encourage trust and awareness.
For example, SUGAR Cosmetics’ following has increased to 2.3M followers as it reposts or shares images & videos of customers using its products.
Better than influencer marketing
Influencer payout is really expensive. But the cost for consumers to post about your products is minimal – almost nothing!
UGC is an affordable option to expand your brand and add a fresh marketing approach to the game. Also, you can create brand pictures and other campaign-related content without having to pay a pricey design business. Consumers consider UGC to be 9.8 times more convincing when choosing between two products than influencer content.
Your customers are your valuable people, so connect with them. Share their content on your channel; they’ll love it for sure!
As smaller brands or burgeoning brands have less capital with them, UGC is more successful in the way of brand recognition.
Brands can see a significant increase in conversion by merely showcasing UGC. Look at these impressive stats:
- Ads using user-generated content have a 50% reduction in cost-per-click and a 4x increase in click-through rates.
- Comparing ads or sites without UGC results in 29% better online conversions.
- Incorporating UGC into an internet shopping journey boosts conversions by 10%.
UGC X Social media X E-commerce
Since the advent of social media, brands can showcase their products more to the customers, and consumers are constantly doing social commerce. It means making direct purchases through social media.
Consider pausing when browsing Instagram to look at a pretty new dress. You click to get additional information about the product, choose to buy it, and finish the transaction through the app.
Since UGC influences conversion rates, social commerce and UGC complement one another well. User-generated content and social commerce are a perfect combination because over 80% of users agree that UGC influences their purchasing choice.