How User Generated Content Improves Sales

What is UGC and Why do You Need It for Your Small Business?

User generated content (UGC) is any form of content such as reviews, pictures, videos and blog posts made by people rather than brands. This is a powerful form of marketing as it focuses more on the brand-consumer relationship, which improves engagement and drives more conversions.

Read on for three ways User Generated Content benefits your business!

1. Trust Increases Sales

Marketing is more influential on the buyers decision when it is in the consumers’ hands. This is because it is an unbiased commentary on your product or service. It is more effective as people gain a sense of trust in your brand through other people’s experiences.
It can be harder to convince prospects that your business is worth their investment when you are the only one on your team. However, content by customers vouching for you is the evidence needed for someone who is considering buying.

According to statistics, 92% of online shoppers incorporate reviews in their purchase decision. This proves that User Generated Content is not optional but necessary.

2. Cost effective marketing with a high ROI

It is easy to assume that to effectively market your business, there is an extreme price to pay. Yet UGC proves that you can market your brand with little to no cost. Plus you will receive a higher return on investment. This is ideal, as your return of investment in business has to be higher than your initial investment.
There are many great businesses that have built their marketing strategy on user generated content business models. An example being the beauty brand, Glossier, which has mastered strengthening the brand-consumer relationship. In fact, they consider their customers a part of their brand, as reflected in their social media marketing strategy.
The founder of Glossier, Emily Weiss explained that “At Glossier, something we’ve always stayed very true to since pre-launch, day one, is that every single person is an influencer.” The reposting of consumers content through branded hashtags creates a strong community and increases brand awareness with minimal in-house production.
Glossier is now valued at more than $1.2 billion.
They have proven the power of User Generated Content and how it builds a strong, loyal community and increases sales. If you haven’t prioritized your audience, this is your sign!

3. Constructive Criticism Improves Your Brand

There is so much value in collecting data such as reviews, testimonials or anything where the customer gets to openly express their opinion without bias. You gain insight into what people love about your brand and can capitalize on it to improve your brand.
Whilst no one ever wants to see a bad review, it is likely that you will. How you respond to it makes the greatest difference.
Accept the criticism without becoming defensive.
Refining your business is a key part of entrepreneurship and is a constant journey. This is why this feedback make it easier for you to know what needs to change. Learn to take heed to comments and not offense.
Accepting negative feedback shows that you care what your audience has to say. It also softens the tone of your brand which makes you more friendly and trustworthy. Use their commentary to level up and meet the needs of your desired audience.

How to Get Started with User Generated Content?

There are many different types of User Generated content. When choosing the best for your business there are a few things to consider.

• How does UGC work with your marketing goals?
  • Do you desire more conversions? Do you want to build engagement with your audience?

• What are the best platforms to use for the different types of UGC?
  • If you want to gain more written reviews, TikTok is not the best option as it prioritizes content creation but if you want videos of people using your product then TikTok is perfect. If you want to start a branded hashtag, Instagram is a great place for reposting pictures and tagging customers.

• Is User Generated Content different for product or service based business?
  • UGC will differ slightly depending on your business structure as service based businesses require more testimonial content.
  • Product based businesses focus their user generated content more on demonstration of the product.

Ultimately, gaining the ideal marketing strategy will consist of trial and error to see what works best for your branding. Answering these questions will help you make a more calculated decision concerning your strategy.

To Conclude

Endorse User Generated Content in your marketing strategy to aid in reaching your goals. Consumers have a lot of impact online which can massively affect businesses. Therefore, it is important to take control over this side of marketing and use it to your advantage.

For small or big business owners that want to enhance their marketing strategy with low cost and high return, implement user generated content and see your brand flourish.