“86% of brands and retailers believe that more authentic User-Generated Content in their paid and owned media would improve the performance of their ads and content.”

User-generated content promotes the brand's message by serving as social proof, which can be utilized to grow social media followers, fortify client connections, instil trust in the target market, boost SEO value, and enhance revenue.

Consumers are more likely to trust user-generated content than traditional advertising. That’s because brands do not pay for user-generated content. Instead, it is objectively generated by people who love a company's products or services. As a result, user-generated content is perceived as more real and honest.

But what is UGC?

User-Generated Content (UGC) is brand-specific, original content created and shared by customers on social media and other platforms. UGC can take many forms, from images and videos to reviews, testimonials, and even podcasts.

Where does UGC content come from?

Customers

Whether it’s unboxed TikTok videos or uplifting posts on Instagram, customers are typically the most visible cohort companies seek to acquire UGC from. This is either because businesses requested it or because customers prefer to post brand-related content organically.

Brand loyalists

Whether you call them loyalists, advocates or fans, a business’s most loyal customers are often the group that is most passionate about the business. They are the ideal audience to contact and request specific content from UGC.

Employees

Employee-generated Content (EGC) showcases the value and narrative behind a business’s brand. Employee-generated content contributes to shaping the brand's identity. It works across social media and ads to demonstrate authenticity.

UGC creators

A UGC creator is someone who creates sponsored material that appears to be real content but is actually made to promote a company or product. A UGC creator does not create organic UGC; rather, they are hired by marketers to create material that resembles organic UGC.

The Impact of UGC on Marketing Strategies:

Building Authenticity and Trust

In today’s competitive online landscape, brands have to compete for audience attention. Buyers are becoming selective about who they connect with and buy from, particularly the Gen-Z generation.

Marketers believe that authenticity and quality are important for content success. UGC from customers is the most authentic type of content. Audiences will spot the fake sentiment quickly, which could tarnish the brand’s reputation.

Make certain that the UGC comes from one of three sources: customers, brand loyalists or employees. UGC is the “new word of mouth” for today’s consumers. Consumers are 2.5x more likely to view UGC as authentic than brand-created content.

Enhancing Brand Engagement

UGC allows customers to be a part of a brand's growth, rather than just a spectator. This has a huge impact on brand loyalty because people thrive on being part of something bigger than themselves.

Creating UGC allows consumers to be part of your community. UGC also fosters interactions between you and your target audience. This level of interaction contributes to the formation and growth of an engaged community.

Sharing the content from the audience helps to strengthen business ties, making your brand more trustworthy than before.

Audiences use UGC as a sign of faith, just as they would ask their friends or family for an opinion. Around 84% of millennials rely on recommendations from family and friends to decide whether or not to buy a product . This is where UGC helps because it is a personal recommendation.

Boosting Conversion Rates

User-generated content is extremely beneficial in the last stages of the buyer's journey, where a conversion is possible. UGC serves as genuine social proof, encouraging customers to buy your products.

Adaptable and flexible

UGC can be utilized in non-social marketing campaigns to help persuade prospective buyers to make a purchase, or it can be included in crucial landing pages to help raise conversion rates.

More cost-effective than influencer marketing

The cost of influencer marketing can vary based on your business goals, industry, and the platforms you target. On the other hand, encouraging your customers to post about your product is free.

UGC is a cost-effective way to grow a business and bring a new marketing approach. Smaller brands with limited budgets can benefit from UGC as it is less expensive and easier to manage than larger brand awareness campaigns.

Works in harmony with social commerce

Social commerce is the future of online shopping. Social commerce is shopping directly on your preferred social channels. The key to social commerce is that audiences can convert natively within the social media app, instead of going off-network and completing a purchase.

UGC and social commerce work together because UGC has a significant impact on driving conversions.

Conclusion: User-generated content boosts your company's visibility and strengthens its brand image, providing you with an advantage over competitors. UGC is essential for building a strong online presence and increasing audience engagement.

There is no “one size fits all” approach to collecting user-generated content. The success of your UGC strategy will be determined by your business goals and target audience. By using effective techniques, marketers can direct UGC efforts in the right direction. Incorporating user-generated content into their digital marketing strategy can position businesses to reap the benefits as dependability and authenticity rule the marketing landscape.

At CMO Axis, our Sales and Marketing Outsourcing (SMO) services harness the potential of authentic and compelling user-generated content to drive engagement and conversions. Contact us today to maximize your brand's impact.