User-Generated Content (UGC) and its impact on your business
Introduction: What is UGC?
User-generated content (UGC) is any content – be it videos, photos, reviews, blogs, social media posts, or any other form of content – that is created by unpaid contributors, often your brand’s customers or fans. Then you use it to promote your product.
UGC is a win-win: both you and your users get benefits. Your business constantly receives new content that you don’t have to spend time or money to create. Your users feel more empowered and engaged. You, as a representative of a product or service, just need to directly or indirectly motivate your users to create and distribute the content.
With user-generated content, the trust of the cold audience grows, because the opinion of other people is more important than the advertisement.
People like to engage with other users’ stories. This is something authentic, real and genuine. This kind of content attracts new users much more effectively than perfect, “polished” advertising photos.
Difference between UGC and influencer marketing
In a previous post about influencer marketing, we sang its praises. But depending on your goals, you might also consider UGC (or a mix of two) because:
- Origin: While influencer marketing is about brands working with individuals (influencers) to promote their products or services, UGC comes directly from users, without an explicit partnership.
- Compensation: You compensate influencers in some way (with money, products, services, or experiences), while UGC is mostly spontaneous and for free.
- Authenticity: Both influencer content and UGC offer authenticity, but UGC is even more genuine because there is no formal partnership behind it. It’s the voice of ordinary customers.
- Control: Brands have more control over influencer content because there is often an agreement or contract. With UGC, brands don’t have direct control over what users post.
Why you need UGC
- Trust and credibility: 92% of consumers trust organic, user-generated content more than traditional advertising.
UGC is unbiased and genuine.
- Potential customers are looking for trust signals, and UGC delivers them in full with real information from real customers about products/services.
User-generated content helps audiences explore customer experiences, which in turn builds trust.
- SEO Boost: UGC can deliver fresh, unique content for brands that search engines love. Reviews, comments, and posts can contribute to better SEO performance.
When UGC is used, it increases traffic and the number of unique links, which is an important criteria for website ranking. In other words, your brand’s website will rank better in the search engine when UGC is present. This, in turn, leads to a larger audience.
- Conversion rates: UGC, such as reviews or testimonials, can significantly increase conversion rates on product pages.
User-generated content can be integrated at any point in the sales funnel: at the awareness, consideration, or decision-making stage. One of the main reasons why user-generated content has such a strong impact on conversion rates is that it is the most trusted and authentic content in the marketing ecosystem.
As mentioned earlier, users are attracted to and feel engaged by reviews from real customers, which leads to an increase in conversions.
- Improved community engagement: UGC fosters a sense of community among consumers. When users see others sharing content or reviews, they also feel motivated to share their experiences.
Social media is the center of UGC, where billions of people research, gather and learn about products through user recommendations, customer reviews and visual content.
Increased awareness leads to engagement with potential customers, which in turn means engagement with your brand. Engagement is undoubtedly the main goal of an online marketing strategy, as it positively correlates with conversions.
Bonus: And that’s not all, because UGC is also cost-effective. Brands don’t have to spend additional resources on creating this content. Instead, they can focus their efforts on curating and promoting this content.
Tip: Consider adding UGC to your content marketing strategy. For this, use our guide How to write content that sells. Part 4
How to encourage UGC
- Hashtag campaigns: Create brand-specific hashtags and encourage users to use them.
- Contests and giveaways: Promote contests where users can submit their content to win.
- Use technology: Use platforms and tools that make it easier for users to create and share content about your brand.
- Showcase UGC: Feature user-generated content on your official channels to encourage others to share.
- Engage with your audience: Respond to UGC creators to create a sense of community and encourage more contributions.
Conclusion
UGC is an organic way for you to connect with your audience, build credibility, and enhance your online presence.
Influencer marketing offers unique benefits, but the spontaneity and authenticity of UGC carry their own weight.
Brands that can effectively use both strategies will undoubtedly be one step ahead in fostering genuine relationships with their audience.
