Marketers are always looking for new ways to create content they can share with their customers. It helps them generate consumer interest, establish brand identity, and encourage customer loyalty. For example, they might be looking for the next big social media platform or the latest innovations in website design that can grow their business and expand their reach. However, in today’s digital-driven world, not all of a company’s content is created by the company itself. While marketers are responsible for things like social media campaigns, blog articles, and website content, brand users are also creating their own content to share with others.

Today, more than 86% of companies incorporate user-generated content into their marketing strategies. Over 90% of customers say it influences their purchasing decisions more than any other type of content. It’s become a powerful tool for marketers across all industries, especially when building and fostering a brand community. It also helps establish a sense of authenticity that today’s advertising-conscious consumers are looking for. How does user-generated content work, and how does it inspire customer loyalty?

User-generated content, or UGC, is any kind of content created and shared by a brand's followers and customers, rather than by the brand itself. The vast majority of user-generated content is shared online via social media networks, blogs, and company websites. Some examples of UGC include reviews, posts and comments, and discussion forums. Videos are an especially popular form of UGC, ranging from makeup tutorials to technology demonstrations to game reviews that show a product's features and quality in real-time.

As digital platforms continue to improve and evolve, user-generated content will also continue to grow alongside them. Currently, 42% of marketers say that UGC is a crucial part of their marketing strategy, with 50% of them using it in email campaigns and 58% of them using it in ad campaigns. Consumers say that user-generated content is almost ten times more impactful than influencer content, and find it more memorable and unique compared to non-UGC content. Marketers need to take advantage of the power of user-generated content if they want to foster consumer interest and encourage customer loyalty.

Reduces expenses and resources

User-generated content reduces the amount of time, money, and effort marketers need to invest in their marketing campaigns. Rather than constantly generating new ideas or creating new content, they can look to their customers’ reviews, comments, and social media for fresh inspiration and ready-made content to share. As long as marketers encourage new and existing customers to create a continuous, unlimited stream of content, it reduces their costs on a long-term basis. It’s estimated that UGC saves marketers the cost of one dedicated content creator, or approximately $72,000. 

Fosters awareness and interest

When users create content about your brand, it amplifies your reach and exposure to audiences that might not have heard of you otherwise; approximately 48% of consumers say that UGC is a great way of learning about new products. If someone posts a picture of your product on social media or writes a positive review on their blog, their followers may show interest in learning more and may even make a purchase themselves. As a result, you have a greater number of potential and new customers who, in turn, may educate their followers, friends, and family about your brand, exponentially widening your reach.

Increases conversions and revenue

User-generated content has been proven to result in increased conversions and revenue, as it creates a sense of customer-driven credibility that encourages consumer interest and engagement. UGC drives a 73% increase in email click-through rates and a 90% increase in time spent on a company’s website. 64% of consumers actively seek out product reviews before making a purchase, with on-site reviews resulting in a 74% increase in conversions. If marketers want to increase conversions and sales, they should strongly consider featuring customer reviews on their website and user-generated content in their email and social media strategies.

Creates social proof and brand community

Today’s shoppers are often skeptical about the honesty and integrity of the brands around them. While 92% of marketers think their content is authentic, only 51% of consumers would agree. Approximately 20% of users have unfollowed a brand on social media for perceived inauthenticity. User-generated content acts as social proof, meaning that it validates a brand’s reliability since it’s demonstrated by customers and not by the brand itself. For example, users are more likely to purchase something after watching a video review than a marketing video due to its inherent authenticity and transparency. 92% of consumers trust other people’s recommendations, even if they don't know them personally.

UGC also adds a human element to a brand’s marketing efforts, allowing companies to create an emotional connection and build deeper relationships with their customers. For example, brand-specific hashtags encourage users to post photos and videos of them using a brand’s products. It helps consumers find like-minded people and connect with them over similar interests and experiences. When brands encourage and foster customer participation, it creates a sense of trust and a feeling of community.

Encourages customer loyalty and engagement

Companies that leverage authenticity, interactivity, and value in their marketing campaigns are more likely to connect with consumers than those that don’t. Ads that featured UGC received 73% more positive comments than traditional ads, while UGC posts on social media gained 28% more engagement compared to companies’ regular content. When customers feel encouraged to post, comment, and share, they’re more invested in a brand’s content, products, and services. Rather than simply shopping for products of the highest quality or the best value, shoppers might instead engage with brands they had memorable experiences and interactions with.

As mentioned previously, UGC helps to build a brand community that fosters long-term customer loyalty. Consumers are more likely to remain loyal to brands who share their values and show interest in their experiences than those who are simply focused on selling products and creating their own content, especially shoppers from younger generations. Loyal customers may even become brand advocates who regularly talk about your products and can help amplify your reach and exposure further. Repeat customers also result in reduced costs and increased revenue. If companies want to nurture shoppers into loyal customers and reap the benefits of a dedicated brand community, user-generated content is the way to go.

Legal and ethical issues

One of the biggest challenges of leveraging user-generated content is the potential for legal issues. Brands should get permission from their customers to use their content in their marketing efforts and make it clear when the content they’re posting belongs to someone else. For example, when reposting a product photo on Instagram, they should tag the original poster in the caption. Marketers need to be fully up-to-date on laws revolving around intellectual property and copyright infringement before utilizing UGC.

Companies should also take ethical issues into consideration. For example, if they’re paying brand advocates to talk about their products, the relationship needs to be explicitly disclosed. If their new marketing campaign is inspired by a user’s content, they should properly credit and compensate them for their idea. Lastly, brands need to respect customers’ privacy and data-related concerns. Users should have the right to remain anonymous or opt out of their content being shared entirely.

Content monitoring and moderation

Brands should be vigilant about what people are saying about them, especially online. While user-generated content is generally positive, spam and negative feedback can harm the conversations surrounding companies and their offerings. Marketers need to monitor and moderate consumer content without over-censoring their opinions. For example, if customers are arguing with one another in a community forum, marketers may want to step in before it escalates. On the other hand, if a significant number of people are leaving negative reviews about a certain product, marketers should probably take their comments into account. Content monitoring and moderation requires additional time and resources, but is a necessary part of UGC.

Lack of quality user-generated content

Some companies struggle to find quality user-generated content, depending on how long they’ve been around or what kind of products or services they’re selling. If a company is relatively new, they might not have a large enough customer base to generate a steady stream of UGC. If their offerings are difficult to explain or tricky to photograph, customers may be less inclined to create content about them. To overcome this, brands should find ways to encourage people to talk about their products and offer incentives for doing so. For example, hosting a contest where users submit entries via a brand-specific hashtag for the chance to win free products. If brands want to incorporate UGC into their marketing strategies, they shouldn’t assume that users will create content without being prompted.

Warby Parker is an eyeglasses company that encourages customers to test their products and share them on social media. Their Home Try-On campaign allows people to choose five different pairs of eyeglasses to try at home for five days for free. They asked users to share selfies on Instagram using the hashtag "#warbyhometryon" and get opinions from their followers about which pair suits them best. This UGC-focused campaign helped drive exposure and engagement at little to no cost for Warby Parker's marketing team.

GoPro is best known for its action cameras, which are especially popular with travellers and filmmakers. Since 2015, GoPro has been hosting the GoPro Awards, where users upload photos and videos taken with GoPro cameras in exchange for cash and prizes. They also regularly host themed content challenges, such as the Time We TikTok challenge and the #GoProSnow challenge. These contests help bring awareness to their products, establish an active brand lifestyle, and build a community of customers with similar interests and experiences that regularly create content for GoPro to share.

LaCroix is a sparkling water company that has become especially popular with younger generations in recent years. Similar to Warby Parker, LaCroix employs brand-specific hashtags like #LiveLaCroix and #LaCroixLove to find and connect with their target audience - millennials - on social media. They also respond to comments and share user photos on a daily basis. Lastly, they send free products and branded merchandise to loyal customers and micro-influencers, and build interactive displays that fans can use in the background of their photos.

Sephora’s Beauty Insider program is a great example of how user-generated content is used in loyalty programs to build a brand community and retain long-term customers. In addition to offering members special discounts and exclusive perks, the program also provides a space for users to share photos of their makeup looks and talk about their favorite products. This helps both Sephora and the brands they carry gain insights into consumers’ shopping preferences and connect with them on a personal level.

Foster customer loyalty with user-generated content

User-generated content is beneficial for companies in many ways - it reduces the amount of time and money spent on resources, creates brand awareness and social proof, and increases conversions and revenue. It also helps marketers collect valuable information about their users’ preferences so they can effectively nurture them into becoming loyal customers and brand advocates.

If brands want to reap the benefits of UGC, they should consider running programs that encourage consumer engagement and foster customer loyalty. For example, hosting contests where users submit photos for the chance to win a prize, or building a loyalty program where customers receive rewards for leaving reviews or posting comments.

3 tier logic’s PLATFORM³ helps brands create marketing campaigns like sweepstakes and contests, loyalty programs, and more. Modules like Dynamic Messaging and Data Capture & Analytics provide marketers with the critical tools and information they need to make well-informed business decisions and strengthen their connection with their customers. To learn more, book a demo with our team today.