It could be a person, place, or thing. If you see it posted by your peers or friends on social media, you’ll most likely want to experience it for yourself. We’re not back in English class talking about nouns; we’re here talking about the ultimate guide on user-generated content. Coming in many forms, such as photos, videos, blogs, or even reviews, UGC can dramatically reduce your customer acquisition cost (CAC). In its simplest form, CAC is the amount of money your business needs to spend to get a customer to make a purchase. It’s an important guide for any brand to understand your profit and sales efficiency.
Graphic from Qualtrics
Having said that, you need to understand the why and the how behind UGC. This is the ultimate guide on how user-generated content can save you money and boost engagement.
Understanding User-Generated Content
What is UGC?
As the name suggests, user-generated content is content generated by the user rather than the brand itself. UGC is one of the most powerful tools you can use in your marketing strategy, as it creates a positive impression among consumers, ultimately increasing brand loyalty. The reason for this is that it is perceived as more authentic than traditional marketing, trusting the experience of their peers over the company. In today's marketing world, this is undoubtedly one of the most effective ways to get new customers.
Types of UGC
When it comes to UGC, you’re not just looking at one type of content. You have an array of options to choose from.
Reviews: Think of companies like Yelp, TripAdvisor, and Amazon. All of these companies rely on consumer reviews, which provide real insight into their experience and further influence the purchasing decision.
Social Media Posts: Possibly one of the most important ones you can get nowadays. Everyone has social media, so gathering as much UGC as possible on every platform is important. Generating UGC through sites like Meta, Instagram, and X (Twitter) provides real-time relatable content that resonates with consumers.
Videos: With every platform adapting to TikTok's quick video format, UGC videos can now be promoted on nearly every platform. These videos come in a wide range of formats, such as unboxings, tutorials, vlogs, testimonials, you name it. Videos can skyrocket engagement as they are 1200% more effective than photo and text-based content combined.
Blogs: Not the first one that comes to mind when you think of UGC, but blogs are nothing to shy away from. They offer in-depth analysis of your product, as well as personal stories and detailed reviews. Most blogs even have a comment section where others share their thoughts and experiences. Blogs can foster a sense of community and give new consumers a place to go.
Why UGC Matters More Than Ever
The polar opposite of traditional advertising, UGC offers real experiences and opinions from actual users. This authenticity often leads to higher engagement rates, as people are more likely to interact with content created by their peers. Moreover, UGC can significantly impact purchasing decisions, as consumers tend to value recommendations from other users over brand-driven messaging. In a world where consumers are bombarded with information, UGC cuts through the noise, providing relatable and persuasive content that resonates personally. As a result, brands are leveraging UGC to build stronger connections with their audiences and enhance their overall marketing strategies.
Saving Money with UGC
The benefits of UGC become crystal clear when comparing the costs associated with producing branded content. With branded content, things such as writers, photographers, videographers, designers, software, etc, all play a role in your bottom line. On the other end of the spectrum is UGC.
For example, a professionally done branded rollout can cost thousands of dollars when all of the factors are considered. But with UGC, you can have customers submit photos, videos, or even written testimonials, all for a prize or a coupon code. The savings are massive, around 50% per click compared to traditional advertising. Saving money while getting the same amount of engagement, if not more, sounds like a win-win to me.
Example: Coca Cola
Even if you’re team Pepsi, you must admit Coca-Cola created one of the most iconic UGC campaigns ever. Coca-Cola’s “Share a Coke” campaign got consumers to share photos of themselves with personalized Coke bottles. This campaign generated hundreds of photos and videos for their various social media channels at a fraction of the cost compared to in-house professional content. Even if you don’t drink Coke, you always check the store or gas station to see if they have your name. Generating over six hundred thousand posts under #shareacoke on Instagram alone, everybody and their dog jumped on this trend.
Leveraging Existing Resources
Encouraging User Contributions
If you’re not automatically receiving UGC, you can encourage users to make content about your products or services. Tons of companies incentivize their consumers to create and share their thoughts through a multitude of ways, such as social media hashtags, contests, and challenges. For instance, a fitness apparel brand might run a monthly challenge asking customers to share workout photos or videos wearing their products using a specific hashtag. Winners could receive discounts or free merchandise, motivating participation while minimizing costs. Additionally, you can source UGC from your existing customer interactions, such as reviews, comments, and testimonials. By actively engaging with your followers, you can repurpose those responses and showcase them to new customers, boosting your conversion rates.
Raise Marketing Efforts with Expenses
User-generated content is a great supplement or a quick fix if you’re running low on traditional marketing. Unlike traditional ads that could be viewed as skeptical by consumers, UGC carries a sense of trust and authenticity. Potential customers are more likely to trust the opinions and experiences of fellow consumers than those presented in branded content. Having UGC stashed away to fill the gaps in your content calendar year is never a bad idea. Regularly featuring user-generated photos, videos, and stories on social media channels keeps the content fresh and engaging without needing constant professional production. This approach not only saves costs but also maintains a dynamic online presence.
Boosting Engagement with UGC
Authenticity and Trust
User-generated content is a natural-born superstar at providing a level of trust and authenticity, something that branded content seems to struggle with. Potential customers want to see real people, like themselves, use the product. Unlike polished marketing materials, UGC reflects real-life use and honest opinions. This authenticity can be particularly compelling in industries where trust is crucial, such as healthcare, finance, and consumer electronics.
UGC on Brand Perception
When a customer shares a personal and, hopefully, positive experience with your brand, it acts as a personal endorsement, which can be incredibly persuasive among scrollers passing by. Companies that highlight these genuine experiences often see a boost in credibility and their reputation level. For instance, when customers post photos or videos using a product in their daily lives, it not only showcases the product's practical benefits but also humanizes the brand, making it more relatable and approachable.
Encouraging User Interactions and Conversations
By encouraging customers to share their own experiences and engage with each other, they can quickly create an interactive environment where people feel free to express their opinions. Where do you do this? On social media. When users comment on each other's posts, share tips, or simply leave a nice comment, it can create a sense of camaraderie. Brands can initiate these conversations by hosting events, starting challenges, and creating hashtags.
Brand Loyalty Through Shared Experiences
Without a doubt, shared experiences are a must when building a loyal community. When customers feel that they are part of a larger group with common interests and experiences, their emotional connection to the brand strengthens. This loyalty is not just about repeated purchases; it’s about fostering a long-term relationship. Brands like Nike and Apple have mastered this by creating platforms where users can share their journeys, whether it’s through fitness milestones or creative projects. These shared experiences reinforce a positive association with the brand, leading to higher customer retention and advocacy.
User Networks and Social Sharing
One of the biggest upsides to user-generated content is its power to amplify your brand's reach. When a user shares their content, it taps into their networks, inevitably increasing the audience that encounters the brand. Any type of UGC has the potential to be seen by hundreds and thousands of people. This type of organic reach is often more valuable than paid advertising because it comes with the certified seal of approval from the user. Adding an extra layer of credibility to your brand.
How to Collect UGC For Your Brand
Asking Directly For Feedback
If you’re just starting out, UGC isn’t just going to fall into your lap. You need to go out there and ask for it. One way of doing this is by following up with past customers by email. Asking for a review in exchange for a coupon code is an easy way to get UGC. It not only helps you gather content but will most likely lead to a purchase with the code you’ve given them.
Creating a Unique Hashtag
It might be the most common way to generate UGC for your campaign, but it can be the most effective when done right. Don’t just make it any old hashtag; give it a purpose with a unique twist, and the masses will follow. Take Lay’s for example. Getting people involved with their unique hashtag while offering incentives. It’s how every hashtag campaign should be done.
Get Involved With Your Users
At any given moment, your satisfied customers might recommend your products and services to others on social media. Automation platforms can help you monitor these conversations in real time. This allows you to thank them for their kind words and also ask if they’d be interested in collaborating to create user-generated content (UGC). These tools come with social media analytics to help you track and evaluate which user-generated content is performing best and on which social media channels. Using the data collected, you can identify these users and arrange ongoing collaborations.
Work With Influencers
Working with influencers has a double-sided effect. While it can be a bit expensive, it can be extremely beneficial. The first benefit being is that they know their audience, and they will know if your product will resonate with said audience. The second benefit is that they have the followers you might not have. They are well respected and trusted within their niche, further pushing the reach of your product and brand.
Ambassador Program
An ambassador program is an excellent strategy to motivate loyal fans and customers to consistently create content for your brand by treating them like VIPs. When people become part of an exclusive group and receive special perks, they are more inclined to share content about your products and services. To launch an ambassador program, clearly define the guidelines for participants. Specify the types of posts they can create, what they should avoid mentioning about your brand, and how to use the perks and benefits associated with being an ambassador. Boohoo’s ambassador program is a perfect example of this.
Offer An Incentive or Loyalty Program
As you’ve probably noticed throughout this whole article, it’s a power move to offer an incentive for UGC. It’s not like you're bribing them or sneaking a fist full of cash underneath the table. You're offering something to them in exchange for their opinion or participation. It’s something nearly every brand does, so why shouldn’t you? Some brands even take it a step further, offering a full-blown loyalty program. Take American Express, for example. Use our card and get money back; it’s that simple. Whether it’s hotels, flights, concerts, gift cards, or anything under the sun, you can most likely get it with your points. You were going to spend the money anyway, so why not be rewarded for it?
Analyzing and Measuring UGC Effectiveness
Key Metrics for Evaluating UGC Performance
To gauge the success of UGC initiatives, brands should track various performance metrics. Engagement metrics such as likes, shares, comments, and views provide insight into how well the content resonates with the audience. Conversion metrics, including click-through rates (CTR) and sales generated from UGC campaigns, help assess the direct impact on business objectives. Additionally, sentiment analysis can offer qualitative insights into how the content influences brand perception.
Adjusting Strategies Based on UGC Insights
The insights gained from analyzing UGC performance should inform future strategies. For instance, if a particular type of content or campaign format proves highly engaging, brands can replicate and refine these elements in future initiatives. Conversely, underperforming content provides valuable lessons on what to avoid. Regularly reviewing and adjusting UGC strategies based on data ensures that the content remains relevant, engaging, and aligned with business goals.
Case Studies: Real-Life Examples
Fashion: Aerie's #AerieREAL
Aerie, the lingerie and apparel brand, initiated the #AerieREAL campaign to promote body positivity. The brand encouraged customers to post unretouched photos of themselves wearing Aerie products, celebrating natural beauty and diversity. With this type of hashtag campaign, you get a healthy mix of everything. You get photos, videos, unboxing, and try-on hauls, perfectly demonstrating everything their brand offers.
Success Factors:
Authenticity: Aerie built trust and resonated with a wide audience by showcasing real customers without airbrushing.
Social Impact: The campaign addressed societal issues around body image, aligning the brand with positive social values.
Customer Empowerment: Participants felt empowered and valued, leading to increased engagement and brand advocacy.
Food & Beverage: Hello Fresh
Not only does HelloFresh use UGC on all of its social media channels, but they also promote it on their website. The chance for your content to be featured creates an incentive for consumers to post. Once you go to their website, they further incentivize you to make a purchase by offering you a discount code right away.
Success Factors:
Social Proof: User-generated content serves as social proof, showing potential customers that real people are enjoying HelloFresh meals. This can significantly influence purchase decisions by building trust and credibility.
Customer Empowerment: By featuring user-generated content, HelloFresh empowers its customers, making them feel valued and appreciated. This positive experience can lead to long-term loyalty and advocacy.
Feedback Loop: UGC also provides valuable feedback for HelloFresh. By monitoring what customers share, the company can gain insights into customer preferences, concerns, and areas for improvement.
Tourism: InCostaBrava
The Costa Brava Girona Tourist Board initiated this campaign to promote the region by encouraging visitors to share their experiences on social media with the hashtag #InCostaBrava.
Success Factors:
Sustainability and CSR Focus: The campaign emphasizes sustainability and corporate social responsibility (CSR), which aligns with the growing demand for eco-friendly and socially responsible travel options.
Diverse and Authentic Experiences: The campaign promotes a variety of cultural, natural, and gastronomic attractions, offering unique and authentic experiences that appeal to a broad audience.
Collaborative Initiatives: The campaign collaborates with local businesses and organizations, enhancing the tourism infrastructure and visitor experience.
Technology: Microsoft
Microsoft's "Make What's Next" initiative aimed to encourage young girls to pursue careers in science, technology, engineering, and math (STEM). As part of this campaign, Microsoft asked girls to share their inventions and ideas on social media using the hashtag #MakeWhatsNext. This UGC campaign highlighted the creativity and potential of young girls in STEM fields, promoting Microsoft's commitment to diversity and innovation.
Success Factors:
Partnerships and Collaborations: Microsoft partnered with organizations like the National Center for Women & Information Technology (NCWIT) and LinkedIn. These collaborations provided credibility, resources, and a broader reach, enhancing the campaign's impact.
Global Outreach: The initiative had a global perspective, targeting girls from various cultural and geographical backgrounds. By doing so, it addressed the issue of gender disparity in STEM internationally, promoting inclusivity and diversity.
Social Media Campaigns and Hashtags: Using social media and specific hashtags like #MakeWhatsNext helped create a viral effect. This increased visibility and encouraged more participation from the target audience.
Hospitality: Marriott
Marriott launched the #TravelBrilliantly campaign to encourage guests to share their travel experiences on social media. The campaign invited travellers to post photos and stories showcasing their unique travel moments using the hashtag #TravelBrilliantly. This UGC campaign not only increased engagement on social media but also provided Marriott with a wealth of authentic content to use in its marketing materials.
Marriott knew they had success the first time around, so why not do it again? With a more updated campaign, #MarriottBonvoy, this is not just any regular incentive, but Taylor Swift tickets. Join their incentive program and earn a chance to win. What’s not to love?
Success Factors:
Engagement and Interaction: The campaign actively encouraged customers to share their travel experiences, generating high engagement and interaction with the brand.
Community Building: It fostered a sense of community among travellers, encouraging them to share and connect over their travel stories.
Data and Feedback: The UGC provided valuable insights into customer preferences and trends, allowing Marriott to tailor future marketing strategies.
Retail: Ikea
The #IKEAatMine campaign is an example of a successful user-generated content (UGC) campaign by IKEA. The campaign encouraged customers to share photos of their IKEA products in their homes using the hashtag #IKEAatMine.
Success Factors:
Encouraging Creativity: The campaign allowed customers to express their creativity and individuality. This engaged users and generated a diverse range of content showcasing the versatility of IKEA products. The variety in user submissions highlighted how IKEA furniture could suit different tastes and styles.
Leveraging Social Proof: By featuring real customers' homes, IKEA provided social proof that their products are stylish, functional, and fit well into various living environments. Seeing IKEA furniture in actual homes helps potential customers envision how these products might look in their own spaces, driving interest and trust in the brand.
Insight and Feedback: The campaign provided IKEA with valuable insights into how customers were using and evaluating their products. This feedback loop can inform future product development and marketing strategies, ensuring that IKEA continues to meet the needs and preferences of its customer base.
Need to Know More?
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