UGC or User Generated Content is a trend that is picking up pace. All brands big or small are looking to encash the opportunities UGC presents.
User Generated Content refers to the content created by the users, advocates, and loyal to the brand. These are not the official endorsers or brand ambassadors.
The content generated by these users can be in form of a post, video, article, review or testimonial, or even a podcast. If the content is centred around the brand, it is called User Generated Content (UGC).
Leveraging this type of brand marketing or publicity reaps the company greater rewards in terms of loyalty, following, revenue, and trust.
The advantages of UGC are extensive. Let’s take a look at the benefits of UGC for your brands –
- Credibility – A study suggests 72% of consumers believe customer reviews and testimonials are more credible than the brand talking about their products. Customers who are satisfied with the products or services of the brand are the ones most likely to promote it for free. This gives the brand credibility and authenticity. Thus prompting others to go for the purchase.
- Authenticity – Since it is free, the content generated has a higher chance of being authentic and unbiased. The customers posting unboxing videos, product reviews, or their photos with the product are less likely to be compromised. This gives the content genuinely.
- Reach – When the users post content on social media sites like Instagram, Facebook or Twitter or post videos on YouTube, the brands get an organic reach to a wider potentially untapped audience. It also improves their visibility. Thus giving the organic marketing efforts a boost.
- Brand connect – If brands reshare the post in which they are tagged, gives the audience and the content creators motivation to do so in the future as well as establishes a connection with the audience. According to research, 62% of consumers are more likely to click on ads, website, social media posts, or emails that features customers’ photos, testimonials or videos.
- Increased conversion rates & profitability – Due to the enhanced credibility of the brand, the conversion rate is bound to increase, thereby increasing the profitability of the business. UGC is the mark of authenticity for many and customers are more likely to consume products or services that have been endorsed by the general public rather than celebrities or brands themselves.
- Added bonus – Since UGC cannot be considered an integral part of the digital marketing strategies, it nonetheless gives an added advantage to the brands and boosts the organic marketing efforts of it.
- Cost-effective – The biggest advantage of UGC is that the brands do not pay the content creators to promote their products or services, unlike social media influencers or celebrities.
- Instant connection – UGC is an instant connection with the audience at large. It even gives brands an opportunity to connect with more customers, advocates or loyals of the brand.
- Community – Affinity marketing plays an important role in this case. UGC opens doors for like-minded people having the same interests to come together and form a virtual or offline community showcasing their affinity to the brand. This builds a community.
- Trust – A study shows 66% of consumers think transparency is one of a brand’s important qualities. User-generated content is authentic and transparent due to its unbiased nature. Due to zero involvement of the brand in structuring the content.
Thus, UGC is a great way for companies to directly connect with their consumers and bridge the communication gap through its users to build trust.
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