Why Is UGC So Important? Here Are 7 Reasons

Updated: April 29, 2024 10 min read

Joe Tobin

Editor

Nadzeya Sankovich

Writer

Have you ever scrolled through your social media feed and noticed how many posts are not directly from brands but, instead, from people just like you?

Welcome to the user-generated content (UGC) world – the unsung hero of digital marketing and eCommerce. It’s about real people, real stories, and how they’re reshaping the way brands connect with us.

Look at the numbers – customers are 9.8 times more likely to be influenced by UGC than influencer posts when deciding on a purchase.

UGC has been quietly taking over our feeds, influencing our choices, and bringing a touch of reality to the often glossy world of online shopping.

Why is everyone talking about UGC? And more importantly, why should you care?

In this article, find out why it’s not just about the content but also about the stories and authenticity behind it.

The Benefits of User-Generated Content

Think your customers are just buyers?

Think again! They’re your secret marketing squad. Let’s dive into why UGC isn’t just good for your brand but a game-changer.

Budget-friendly brilliance

Using UGC saves money and time for marketing teams. Imagine being able to save $72,000 on your marketing expenses – the average US marketing specialist salary, according to Glassdoor.

That’s the magic of UGC.

It’s like tapping into a goldmine of creativity and enthusiasm from your customer base without the hefty price tag. Customers create content that’s authentic and incredibly diverse, giving your brand a relatable and down-to-earth appeal.

Authenticity that speaks volumes

UGC stands out for its raw, unfiltered authenticity in a world where ads are everywhere. It’s like hearing from a friend about their favorite new product.

This genuine vibe resonates with customers, building trust that polished ads can’t. UGC is your brand’s reality check, showing the world that real people love what you do.

The community at the heart

UGC creates a sense of community around your brand. When customers share their experiences, they’re not just posting content but engaging in conversations and building connections.

Salesforce reports that campaigns with UGC can see engagement skyrocket by 50%. That’s people feeling a part of your brand’s story.

Discovery through real experiences

Picture this: Nearly half your potential market discovers new products through UGC. It’s grassroots marketing at its finest.

And in the internet world, 25% of your brand’s presence is shaped by enthusiastic customers. UGC acts like a beacon, guiding new customers to your brand through genuine, relatable content.

Clicks, conversions, and cost savings

When it comes to performance, UGC is a triple threat. It draws in four times the clicks of traditional ads and does this while halving your costs. Talk about efficiency!

And it doesn’t stop there – UGC also leads to a 29% boost in web conversions. This means turning casual browsers into loyal customers, all thanks to the persuasive power of content created by fellow users.

Engagement that lasts

Here’s a fun fact – users spend over five hours a day engaging with UGC. So, your brand takes center stage in this immersive experience.

This prolonged exposure keeps it front and center in the minds of consumers, creating lasting impressions and continuous engagement.

Sealing the deal in the purchase path

Adding UGC to the online shopping experience boosts your conversions by 10%.

It’s like having a trusted friend guiding your customers through their purchasing journey, showing real-life applications of your products that turn interest into sales.

Imagine creating an experience so cool that everyone wants to be a part of it. From saving some serious cash to building a community of brand advocates, boosting discovery, ramping engagement, and driving sales – UGC is the secret sauce in the digital marketing recipe.

Why UGC Is Important

Did you know that 90% of consumers find UGC more influential than brand-led advertising? This statistic alone underscores the immense impact of UGC.

Here are seven compelling reasons why UGC is crucial in today’s digital marketing landscape.

1. Building trust with audiences

People trust what they perceive as genuine. UGC, like customer reviews or photos, shows real experiences with your products or services. Think about how Airbnb uses customer reviews to build trust.

When you see a bunch of positive experiences from real people, you’re more likely to book that cozy-looking apartment.

2. Boosting eCommerce conversions

UGC fits smoothly into different stages of your customer’s journey.

For instance, ASOS features customer photos on product pages, showing how clothes look in real life. This authenticity helps customers visualize themselves in the products, nudging them towards a purchase.

3. Incentivizing purchases

There’s nothing like seeing someone rave about a product to make you want to buy it. UGC acts as social proof.

A classic example is how Glossier grew its brand. They constantly share user-generated photos and reviews, making their makeup and skincare products irresistible to new customers.

4. Enhancing reach

UGC on platforms like Instagram or TikTok can massively increase brand awareness. Look at how Starbucks’ #RedCupContest on Instagram excites customers to share their festive cup designs, creating a buzz and drawing more attention to the brand.

5. Content variety

UGC keeps your content fresh and diverse. Each user has their unique style and perspective.

Take GoPro, for example – their entire marketing strategy revolves around user-generated videos showing the camera’s versatility in various adventurous settings.

6. Improving SEO performance

UGC can give your SEO a big boost. More content means more keywords and authentic user reviews to keep your website content fresh. This can improve your Google rankings.

TripAdvisor is a great example, where user reviews constantly update content and improve the site’s search visibility.

7. Showcasing brands uniquely

UGC allows for creative and unconventional brand presentations. When a user’s post goes viral, it can catapult your brand into the spotlight.

Remember the “Ice Bucket Challenge”? It was a UGC goldmine for ALS (Amyotrophic lateral sclerosis) awareness, with millions participating worldwide, including celebrities.

Every one of these examples proves that UGC is invaluable in connecting with audiences, enhancing brand reputation, and driving business success.

Best User-Generated Content Examples

Regardless of their size, brands leverage user-generated content to raise awareness, boost conversions and social interaction, broaden their audience, and efficiently expand their business.

Let’s explore five bestselling examples to grasp why user-generated content is such a hit.

Apple

When it comes to keeping it real and making content that rocks, nothing beats having your users vouch for a product they’re crazy about.

Apple got this when they realized folks weren’t happy with the iPhone’s low-light camera. So, they came up with the famous #ShotOniPhone campaign.

The campaign was all about regular folks and camera whizzes taking low-light shots with their iPhones and sharing them everywhere, especially on YouTube.

These stunning low-light pics were spotlighted under the “Shot on iPhone” banner. It was a parade of incredible low-light shots captured by everyday iPhone users.

As a result, Apple won back the trust of skeptics and saved big on development and production. Plus, it made users feel extra special when their photos became Apple’s global ads.

This long-running UGC campaign also supercharged user engagement in Apple’s community, making everyone feel part of the family. It played a massive role in bringing Apple back into the hearts of its die-hard fans.

And guess what? They’ve been rocking this UGC strategy for three years straight.

Sohome

If you’re running an online store, going all-in on a user-generated content campaign is like the secret sauce for driving sales.

Take Sohome, for example. They’ve excited customers to share product reviews and plaster their unique hashtag everywhere – on their website, in emails, and all over social media.

And they’ve got this Instagram carousel on their website, like a red carpet for the best user-generated content. Customers can easily spot the styles they love and shop till they drop.

Philips

Building a solid company culture and community is a must in attracting top talent. Philips kicked things up a notch with the #LifeAtPhilips hashtag campaign, where employees spill the beans on their experiences and stories right on the company’s website.

This way, Philips taps into their employees’ social networks and becomes a magnet for fresh talent.

By showing off the unique vibes inside the company, Philips becomes the place everyone wants to be.

Netflix

To promote upcoming premieres, Netflix encourages fans to share their posts about their favorite shows and films, often using straightforward hashtags related to the titles of these shows.

This approach sparks curiosity among Instagram users who stumble upon Netflix’s page, as UGC demonstrates that others are already immersed in and awaiting new content.

For instance, the “Stranger Things Season 2” in 2017 generated nearly 2 million Instagram posts with the hashtag #strangerthings2. It even earned the title “most-tweeted-about streaming series.”

By incorporating some UGC surrounding the show into its marketing efforts, Netflix successfully engaged with its audience and fostered a sense of community.

Okay, Reddit. Love it or hate it, it’s one of the big dogs in social media.

They pulled off a stunt called “Maybe Together We’ll.” It was all about celebrating their diverse and friendly community.

They grabbed pics and videos from Reddit users all around the globe and turned them into ads. It was like a global show-and-tell, showing Reddit as the place where folks come together to solve problems.

This campaign had a hand in turning Reddit’s image around, especially after some past safety hiccups. It showed the world how Reddit can be a hub of positive vibes and a powerhouse for tackling challenges together.

Tips and Tools for User-Generated Content

Engaging your audience and encouraging them to create UGC can be life-changing for your brand’s online presence. Here are some effective strategies to inspire and collect UGC.

Audience request

One of the most straightforward solutions is to ask for UGC from existing buyers. Sometimes it is enough to simply ask your audience for content.

For example, ask them to leave a review. Many will be happy to respond and help you. This way, you can get UGC with ease.

Launch of the competition

If the first tip is ineffective and the audience is not loyal enough, you can launch a competition with user prizes.

It is very convenient that, in this case, you can set conditions and choose the UGC you prefer: reviews, video reviews, Instagram stories, etc. The audience becomes motivated, and you get UGC and increase engagement simultaneously.

Bonuses for UGC

If the audience is not very active and is not ready to participate in competitions, you can offer them tempting bonuses for creating user-generated content. This could be an additional discount, reward points, a small guaranteed gift, etc.

As a rule, this method works flawlessly. Most customers will happily share their feedback in exchange for a pleasant thank you from the brand.

To unlock the true power of UGC, you also need tools that simplify its creation and amplify its impact.

1. Billo: Effortless UGC Creation and Amplification

Billo is a tool for generating custom-made UGC that meets your budget and timeline needs. Utilize Billo video ads to boost your brand’s performance metrics.

Here are some more features:

Diverse Creator Pool: Access over 5,000 creators to align with your brand’s demographics, styles, and interests.
Content Testing: Experiment with various UGC types to identify the most effective content for your brand.
Enhanced Engagement: Maximize your ad impact while reducing costs with versatile video ads optimized for various formats and channels.
Efficient Content Delivery: Streamline your budget and accelerate A/B testing by delivering more content rapidly to identify winning strategies efficiently.

2. Hashtagify: UGC Hashtag Research Tool

Social media is a goldmine for collecting UGC. Hashtagify is a fantastic tool for hashtag research, helping you find and create the ideal hashtags for your brand.

3. Taggbox-Commerce: Shoppable UGC Gallery

For e-commerce brands, Taggbox-Commerce is an ideal tool for aggregating UGC and creating shoppable UGC galleries on your website. This shortens the user journey and increases conversion rates.

4. Determ and Crowdriff: UGC for Product Reviews

These media monitoring platforms help you find authentic reviews about your products online. Reach out to real customers and ask for their quotes and photos to feature on your website.

5. Yotpo: AI-Powered UGC Management

Yotpo is an AI-powered solution for social listening and UGC management. Collect and easily showcase customer content, including reviews, ratings, and visuals.

The “Visual Marketing” feature allows you to combine user photos, videos, and reviews for your website, boosting engagement and trust.

So Why Is User-Generated Important?

In conclusion, user-generated content is a must-have for any successful brand. It significantly impacts how customers decide to buy and their psychology. It can also be a powerful tool to build customer relationships and create a more engaging experience.

UGC builds trust and loyalty, resulting in increased sales. Look at some examples, see the benefits, and begin your UGC eCommerce campaign today.

Now is the perfect time to start introducing user-generated content to your marketing strategy.