You have likely encountered a post by a mutual or acquaintance discussing a product or service if you spend any time on social media platforms such as Facebook, X, or Twitter. A relative may be complaining about a faulty charger they purchased from an online shop, or a colleague may be raving about a restaurant they visited the previous weekend.
Examples of user-generated content (UGC) include posts such as this. UGC, as its name implies, is content that is generated by the user, rather than the brand. This is the reason why it is frequently perceived as more authentic and trustworthy than content produced by companies or marketers.
UGC can be compared to a contemporary, digital version of the product testimonials that were once prevalent on late-night television. However, it is significantly more persuasive and, more importantly, has the potential to influence and reach millions of individuals.
This article will investigate the significance of user-generated content (UGC), its definition, and the potential of user-generated content marketing to expand an eCommerce business.
What Is UGC, and Why Does It Matter to eCommerce Businesses?
User-generated content (UGC) is any content that is specific to a particular brand and is generated by consumers and users and shared on online platforms such as social media and forums. It is available in a variety of formats, including testimonials, videos, images, and reviews.
Although it may appear to be a novel marketing strategy, user-generated content (UGC) has been in existence for at least as long as websites and social media platforms have enabled users to post their own content. Today, the proliferation of user-generated content (UGC) is considerably influenced by the transformation of internet users from passive audiences to active creators, which has been facilitated by technological advancements and changes in consumer behaviour.
UGC assists brands in positively influencing purchase decisions and driving eCommerce sales by establishing trust and authenticity.
What Is UGC Content?
There are numerous varieties of user-generated content (UGC) that are accessible on the internet, including social media platforms, websites, and online forums such as Reddit.
Examples consist of:
- Product reviews on review websites
- Instagram photos and videos identified with a brand
- TikTok videos demonstrating how to use a product
- Hashtag campaigns where users share their experiences with a specific product or service
- “How-to” videos or tutorials on YouTube that feature a product
- “Before and after” results using a product in stories or posts
- Shopping haul videos on TikTok and YouTube
- Live streams featuring product demonstrations or real-time user feedback
- Comments or discussions in online forums or community groups mentioning a product or service from a specific brand
- In-depth evaluations or experiences are shared by customers in blog posts.
- Polls, Q&A sessions, or surveys initiated by users and shared in connection with a brand
- YouTube videos featuring unboxings
Benefits of User-Generated Content
Therefore, what is the significance of consumer-generated content to eCommerce brands?
Given that consumers prioritise authenticity and are more inclined to trust their peers than a brand, you are more likely to convert someone if they have viewed your product in an unboxing or before-and-after video than if they have discovered it in a paid advertisement.
Traditional, polished advertisements frequently fail to resonate with consumers when they witness an individual appreciating a skincare product or expressing their candid assessment of a vacation destination.
To engage audiences and promote sales, user-generated content marketing involves amplifying the voices of real customers. It incorporates a variety of strategies, such as the sharing of customer reviews, the showcasing of testimonials, the promotion of user-generated photos and videos, and the encouragement of social media posts with branded hashtags. User-generated content marketing establishes an emotive bond between your brand and its audience by integrating genuine, customer-driven content into your campaigns. This approach also promotes engagement and trust.
Numbers corroborate this assertion: Research indicates that:
- Peer recommendations are the most trusted form of advertising by 92% of consumers (Crowdtap).
- According to Visual Capitalist, millennials are responsible for more than 50% of global purchasing.
- UGC is trusted by consumers in this generation by 50% more than traditional media (Crowdtap).
- According to Statista, approximately 43% of adults in the United States report that they frequently read online evaluations of local businesses.
- According to Crowdtap, 90% of consumers have shared their experiences with a brand or product on social media.
eCommerce-only and click-and-mortar businesses are notably dependent on user-generated content (UGC). UGC assists in bridging the gap when your target customers are unable to physically see, handle, or try a product before making a purchase. A product in action or a glowing testimonial on Instagram can offer consumers the assurance they require to make a purchase.
Additionally, the benefits of user-generated content can be obtained without incurring substantial expenditures. You are not required to pay for the content creation phase of the process, as your customers are responsible for creating posts, images, and videos about your offerings.
Certainly, you would need to obtain their consent to repost or share their content on your website or social media pages. However, many customers are willing to grant permission, particularly if it means their content is featured by a brand they adore. This not only reduces production costs for your business but also enhances customer loyalty and trust by recognising and appreciating the contributions of individuals.
UGC in eCommerce: 4 Ways Consumer-Created Content Drives Sales
Companies of all sizes and industries are utilising UGC to enhance their earnings, develop brand loyalty, and expand their reach, from startups and small businesses to major brands such as Apple, Coca-Cola, and Ikea.
Here is how user-generated content (UGC) functions to increase eCommerce sales:
It Builds Trust
It is not surprising that consumers are inclined to place a higher value on recommendations from their peers than those from brands or marketers. Consumers continue to favour relatability and authenticity over refined, over-produced advertisements. They are more likely to be influenced by a review from a genuine customer than by an advertisement from a brand that extols the virtues of its own product.
UGC provides consumers with unfiltered insights from individuals who have genuine experience with a product or service, thereby confirming the real-world value of the product. In contrast to conventional marketing, which displays the content that brands desire, user-generated content (UGC) reflects authentic use cases, challenges, and benefits that resonate more profoundly with potential buyers.
The following are a few examples of user-generated content (UGC) in marketing that can assist in the development of trust by emphasising the quality of your products:
- A TikTok video of an individual demonstrating the use of a new kitchen gadget
- A customer’s Instagram post depicting their enjoyment of a supper at a restaurant
- A written evaluation on a brand’s Google Business Profile that provides a detailed account of a customer’s experience with their customer service.
- A video testimonial from a satisfied customer of a plumbing service
- A photo shared on X of a user donning a specific clothing item.
- A remark on a blog post published by a brand that provides feedback or insights
It Improves SEO and Search Rankings
Search engine optimisation (SEO) is one of the primary benefits of user-generated content. SEO is a fundamental element of a brand’s online presence and a critical component of a long-term digital marketing strategy. The term “SEO” encompasses the numerous procedures that are necessary to enhance the quantity and quality of traffic to a website by optimising its content and structure for both human users and search engines.
Engaging, pertinent, and high-quality content is one of the attributes of a website that is well-optimized website. This is due to the fact that search engines such as Google prioritise websites that offer users value. Typically, brand websites integrate visuals such as images and infographics, blogs, articles, and interactive elements as part of their SEO efforts.
The following are some of the ways in which consumer-generated content can support your SEO efforts:
- Content Creation: The regular publication of user-generated content (UGC) on your website guarantees a consistent supply of new content, which serves as an indicator to search engines that your website is frequently updated.
- Natural Keyword Integration: The inclusion of keywords that are pertinent to your products or services in user reviews, testimonials, and captions can improve the visibility of your website in search engines without the necessity of forced optimisation.
- Increasing Engagement Metrics: User-generated content (UGC), including consumer photos and videos, promotes increased interaction rates and extended page visits, which search engines interpret as indicators of valuable content.
- Enhanced Domain Authority: The creation of distinctive user-generated content (UGC) campaigns or viral content can generate backlinks from other websites, thereby increasing your domain authority.
- Local SEO Optimisation: Your visibility in local search results can be enhanced by customers who share reviews or content about your business, particularly those that include location identifiers.
Incorporating user-generated content (UGC) into marketing not only enhances the quality of your content but also reinforces your overall SEO strategy by increasing engagement, relevance, and credibility.
UGC in eCommerce Influences Purchase Decisions
In unfamiliar situations, individuals are inherently inclined to emulate the actions of others.
For example, an individual may observe the behaviour of others in a new coffee shop to determine the appropriate order, utilising the crowd’s behaviour as a reference to prevent errors or misunderstandings. This is an example of “social proof” in action.
Similarly, in the realm of eCommerce, consumers are inclined to seek social proof in the form of reviews and recommendations prior to making a purchase. This behaviour is a result of a wish to avoid risk and make decisions that are substantiated by the experiences of others.
UGC serves as social proof, simplifying the decision-making process for potential consumers who may be uncertain about your brand and fostering trust. The following are a few examples:
- Customer Reviews and Ratings: Written reviews and star ratings offer genuine perspectives on products.
- Social Media Highlights: Customers have the ability to impart credibility to a company and its products by sharing branded posts.
- Customer Success Stories: Customers’ detailed testimonials or case studies provide compelling narratives about the impact of a product or service on their lives.
- Product Demonstration and Unboxing Videos: Content generated by customers that illustrates their experiences enhances authenticity and addresses potential enquiries regarding the product.
So why is social proof important? It is impossible to overstate the importance of this: Consumers have faith in the experiences of others. This trust is the reason they are more likely to make a purchase when they observe that a product is well-reviewed and popular among their peers.
In addition to increasing consumer confidence, social proof mitigates decision fatigue. The decision-making process can be overwhelming due to the abundance of available options. Social proof facilitates the process by emphasising a limited number of top choices, thereby reducing the customer’s choices.
Brands can improve engagement, enhance trust, and encourage shoppers to advance in their purchasing journey by strategically incorporating social proof.
It Enhances Customer Engagement
Conversations between businesses and consumers are fostered by consumer-generated content. The sharing of a customer-created video on a brand’s social media pages increases the sense of connection and value that consumers feel towards the brand. This reinforces their emotional connection to the organisation, thereby cultivating brand loyalty.
Furthermore, a user-generated content strategy fosters the development of a sense of community. By sharing user-generated content (UGC) by brands, consumers can observe their experiences being recognised in conjunction with those of their peers, thereby fostering a sense of inclusion. Consequently, this can assist in converting consumers into advocates who generate additional user-generated content (UGC) that further fosters engagement with the brand and its community.
User-generated content (UGC) that depicts genuine individuals utilising and appreciating a product fosters trust, diminishes scepticism, and assists consumers in imagining how the product is integrated into their lives. This implied assurance facilitates the transition from perusing to purchasing.
In addition, brand advocates are inclined to actively promote the brand online and offline, as well as to share their positive experiences with friends, family, and followers. This results in an increase in brand recognition and reach, which in turn leads to increased organic traffic and conversions.
The Role of Online Reputation Management (ORM) in UGC Campaigns
It is crucial to bear in mind that customers do not consistently generate UGC without prompting, and not all of the UGC they do post is positive. Furthermore, although the majority of marketers acknowledge the importance of user-generated content (UGC) in fostering trust and increasing eCommerce sales, only a small number of them are proficient in the creation and curation of UGC.
Online reputation management (ORM) enables brands to enhance their online presence by monitoring, responding to, and utilising user-generated content (UGC)—both positive and negative.
ORM is the process of actively monitoring your reputation and influencing the way your brand is perceived online. It allows businesses to not only capitalise on positive user-generated content (UGC) but also to address and mitigate negative content, thereby guaranteeing that the brand’s image remains credible and robust.
By utilising ORM to emphasise UGC, eCommerce sales are stimulated by the establishment of trust and credibility.
Tim Clarke, Senior Reputation Manager at SVBY agency, stated that an ORM strategy enables clients to promote sales on websites and associated landing pages by amplifying positive reviews, testimonials, and other UGC.
“UGC is more trusted by consumers than manufactured testimonials and other company-produced information.”
The following are the advantages of ORM for UGC eCommerce campaigns:
- Enhances Brand Credibility: A robust ORM strategy demonstrates that your brand is dedicated to improvement and values feedback by showcasing positive UGC and addressing customer concerns.
- Promotes the Sharing of User Generated Content (UGC): Customers are more inclined to share their experiences when they feel valued and acknowledged.
- Mitigates Negative Impact: ORM reinforces customer trust and prevents potential reputational harm by promptly addressing and resolving negative feedback.
However, is it possible for small businesses and entrepreneurs to capitalise on the advantages of ORM and UGC without making a substantial investment?
Clarke suggests that businesses seeking to integrate UGC and ORM into their strategy while conserving time and resources should consider enrolling in a managed software solution.
“SVBY agency, for instance, is cost-effective and will save our clients time and effort in ORM,” he stated.
Our ORM experts at SVBY agency provide businesses with assistance in their UGC campaigns by:
- Creating High-Quality User-Generated Content (UGC): We employ a comprehensive user-generated content strategy and tried-and-true tools to motivate your consumers to submit reviews, testimonials, and social media posts.
- Submission Curation: We select and present the most exceptional customer-generated content that is consistent with the objectives and values of your organisation.
- Mentions Monitoring: We monitor online mentions of your brand to quickly identify and magnify positive conversations about your business.
- Resolving Negative Feedback: We respond to customer complaints or unfavourable reviews in a timely and professional manner to resolve issues and demonstrate accountability.
Businesses can transform user-generated content (UGC) into a potent instrument for fostering loyalty, establishing trust, and achieving long-term sales growth by implementing a data-driven and proven ORM strategy.
