A staggering 86% of people consider customer reviews when making a purchasing decision.
There’s no doubt that user generated content (UGC) is a key player when it comes to gaining the trust of your audience. It creates authenticity that gives credibility to your brand in a way that traditional marketing simply can’t replicate. Often, UGC can be the difference between a user leaving and a customer converting.
So, let’s take a closer look at what user generated content is and why it’s so important for businesses to harness it in the digital age.
User generated content refers to any content on or about a website that has been created by unpaid contributors - essentially it's a digital word of mouth. Content can be in almost any form, including text, images, videos, reviews, or social media posts.
For example, we display reviews from clients on our home page:
Another example of a company utilising UGC is LEGO, who created the campaign LEGO Ideas in 2015. Fans were encouraged to create and share their very own designs using #LEGOIdeas. If the creator got enough support, LEGO would review the design and decide if it would become an official LEGO product.
On the modern internet, consumers are presented with ads and sponsored content left, right and centre. This has made some people skeptical about the products and services they see online. User generated content provides users with evidence that a brand and what it’s offering are authentic.
Even when a brand receives negative reviews, this can ultimately be a positive. After all, over half of consumers have more faith in brands with imperfect reviews because they signal authenticity.
UGC on social media can significantly increase the awareness of a brand. Whether it be through hashtags on Instagram or a viral video on TikTok, the audience’s creativity can amplify a brand’s reach. Additionally, it brings fresh and diverse content to a brand’s following.
Traditional advertising can be costly; producing high-quality content requires money, resources, and time. User generated content means brands can have their product or service advertised in a real-world setting for free, meaning they can reap the benefits of good quality, diverse content without the investment.
When consumers face uncertainty about a purchasing decision they typically look to follow the action or choices of others - this is social proof.
UGC is a powerful form of social proof because it demonstrates that real people find value in that product or service. A simple review or testimonial shared by a user can be a highly influential endorsement for a product.
Conversion rates on product pages with user generated content improve by 8.5% and if a user interacts with the UGC, conversion rates increase by 100.6%. The social proof and added trust that user generated content provides, can give customers that final push to complete the desired action.
User generated content comes with a wealth of undeniable benefits. However, it doesn’t come without risks. For example, consumers may return poor feedback about your product or service, which could have a negative impact on your brand’s reputation.
However, when addressed and managed properly, negative reviews offer an opportunity for customer engagement and for brands to turn a dissatisfied customer into a loyal one. Additionally, it illustrates to other potential customers that your brand is willing to resolve any issues they may face.
Brands do need to be cautious surrounding copyright risks. Sharing content without the right permissions or misusing personal data can lead to legal ramifications. So it’s always important to manage UGC effectively and put clear agreements and permissions in place.
UGC has reshaped the way brands interact with their audience. It provides a sense of authenticity, builds trust, improves brand awareness, reduces marketing costs, and boosts conversion rates. But, most importantly, UGC acts as a tool for businesses to build stronger and more meaningful relationships with their customers.
However, it’s important to leverage it strategically - encourage users to create content that aligns with your core values and always respond appropriately when a customer produces negative content surrounding your brand.
If you want expert help obtaining or managing user generated content, get in touch with us today.
