4 User-Generated Content Tips for Small Businesses and Budgets
Even if you’re unfamiliar with the term “user-generated content” you likely interact with this type of content every day. User-generated content (UGC) is any content (text, photos, or videos) created by users of a platform. The pictures people post on Instagram, reviews they write on Yelp, and stories on Facebook are all examples of user-generated content.
This original, organic content is also a gold mine for marketers. Research shows that UGC consistently outperforms branded content when it comes to boosting engagement, driving sales, and building trust and community. Many well-known, successful brands have been leveraging UGC for years, but one of the best things about this content is that it can fit any marketer’s budget and can especially help a small budget go farther.
Learn why user-generated content is so effective and how to leverage it as part of your overall marketing plan, no matter your business size or budget.
UGC Provides Social Proof
Consumers have become more knowledgeable and, with more information than ever at their fingertips, they are more likely to perform at least a little research before making a purchase. User-generated content provides social proof for businesses and can be especially beneficial for smaller companies and newer businesses.
What is social proof? Social proof is a psychological phenomenon that says people will change their behavior and make decisions based on what they see others doing. There are several different types of social proof including expert approval, celebrity endorsements, testimonials, and social media shares. For example, if a customer is considering buying a particular product and they see customer reviews or a celebrity endorsements, they will be more likely to make a purchase because the social proof provided by this user-generated content has validated their decision.
These types of social proof have a major impact on sales. 83% of consumers are more likely to purchase a product based on reviews from friends and family. In the world of social media, that network of friends is wider than ever before, offering brands a big opportunity to create brand ambassadors out of loyal customers. Of course, authentic marketing can only go so far if a company isn’t truly practicing what they preach, and telling potential customers your product or brand is trusted isn’t enough.
User-Generated Content Builds Trust
User-generated content is today’s word-of-mouth advertising and in a consumer culture that increasingly prioritizes authenticity, it’s a powerful tool for marketers. Consumers want to see themselves represented in advertising and younger generations are pushing for specific things like diversity, wider representation, and un-retouched photos.
Consumers are 2.4x more likely to see UGC as authentic compared to branded content. With user-generated content, potential customers get to see and hear from real people who have interacted with a company and purchased their products. This type of endorsement is huge—user-generated photos are 5x as likely to convert as branded photos.
Authenticity in marketing is all about creating trust with customers and potential customers. 90% of customers consider a brand’s authenticity when making a purchasing decision. If consumers don’t trust a brand or their product, they will be much less likely to make a purchase. And, if brands aren’t leveraging UGC, they are missing out on a big opportunity to drive sales.
UGC Drives Higher Engagement & Sales
One of the most indisputable indicators of the power of UGC is the impact it has on engagement and sales. Branded content is everywhere—from traditional advertising to sponsored posts throughout social media platforms. As consumers spend more time online, they become more attuned to (and often exhausted by) branded content.
User-generated content, whether in the form of reviews and testimonials or photos and videos, serves as a recommendation. 92% of customers trust recommendations from their friends and family and 70% trust the opinions of other consumers online. With UGC creating social proof and building trust, higher engagement and more conversions follow.
One of the biggest benefits of user-generated content is how versatile it is when it comes to marketing tactics and channels. Using UGC in emails leads to a 73% increase in click-through-rates and ads featuring user-generated content generate 5x higher click-through rates. Sites that feature user-generated content see a 20% increase in return visitors and including UGC in the online purchase path boosts conversions by 10%. For marketers with limited budgets, this kind of ROI makes a massive impact.
How to Start Collecting UGC
Once you know why user-generated content needs to be part of your marketing strategy, it can seem daunting to start collecting it. However, a great thing to remember about user-generated content is that consumers are constantly creating it every minute and are eager to share their experiences—89% of people should share positive travel experience and 85% would share a positive restaurant dining experience.
Developing a plan for collecting and curating user-generated content is key to making sure you get the right kinds of UGC. A user-generated content campaign can be as simple or elaborate as you make it, depending on the UGC you want and your budget.
What makes a user-generated campaign effective? Be specific about what you want. Are you interested in customer photos or videos? Do you want written reviews? Tell your followers and audience what you want from them.
Collect photos and videos through a branded hashtag—you can use this hashtag as part of a contest or on its own. Ask followers to share photos along with the hashtag to make it easier to find their shared content. Always be sure to obtain permission before re-sharing or otherwise using the content.
Once you start collecting and curating a library of user-generated content, you can decide how and when to use it. Look at other brands that have successfully integrated user-generated content into their advertising and translate that to your plan. Remember that UGC can be used across every channel: social media accounts, digital ads, emails, shoppable e-commerce galleries, out-of-home advertisements, and so much more.
User-generated content is a necessary part of the marketing strategy for brands and businesses, no matter the size or industry. For smaller companies and tighter budgets, UGC can take your dollar so much farther than traditional, branded advertising.
With its versatility and availability, user-generated content is an effective way to create social proof for a brand or product and helps humanize companies in a time when authenticity is more highly prized than ever before. Build community and engagement by involving customers in your advertising and boost conversions at the same time.
If you aren’t already collecting and using UGC, get started today!