Why Is User-Generated Content So Important?

July 9, 2024 4 min read

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Research shows that 87% of businesses use UGC to connect with their target audience. By working with creators to promote a product or service, brands can build relationships that bolster trust, brand loyalty, and sales. The results of UGC campaigns are appealing to brands, especially since complex algorithms and rising costs make it increasingly difficult to connect with customers through paid ads.

But what is it about UGC that has a strong percentage of brands relying on it? Look at why so many companies chose to harness the power of UGC.

Why Is UGC Important to Brands?

UGC creators can play a vital role in your marketing efforts. Here’s why brands appreciate this particular tactic:

UGC Provides Social Proof

People are influenced by others’ choices. When your supporters endorse your product or provide a demo video, they gently suggest that others should follow suit.

To your customers, UGC is an authentic recommendation from a friend, which is often more effective than sales tactics, advertising, or celebrity endorsements. Our Trust in Influencer Marketing report shows that 61% of consumers trust creators over A-list celebrities.

Simply put, approaching a target audience through authentic UGC content provides social proof that can inspire customers to act.

UGC Builds Brand Loyalty

Every brand wants an army of loyal customers, but building that kind of relationship takes time. Committing to consistent UGC campaigns can help marketers build long-term relationships.

Each piece of UGC shared is another brick in the foundation of a relationship. In time, trust grows, purchases increase, and your brand converts paying customers into loyal ones.

Why are loyal customers so important? Loyal customers are 64% more likely to buy more frequently and 50% more likely to recommend your product to others, according to McKinsey & Company.

UGC Is Cost-Effective

Marketers can call for UGC by running a contest or asking customers to share social posts, or marketers can search for and share content that customers naturally share on their own, with permission.

The cost to leverage UGC is minimal. Marketers invest their time to plan strategies and may need to mail products to creators in exchange for content, but from a budget perspective, costs are fairly low.

UGC vs. IGC

Keep in mind, working with UGC creators is different from working with influencers, who create influencer-generated content, or IGC. In addition to sending influencers a product to review, influencers are also paid for their content. How much? The cost per piece of content varies. Our State of Influencer Earnings offers a breakdown of influencer rates.

While an influencer marketplace can help you find affordable influencers, working with UGC creators is often more budget-friendly.

UGC Aids in Content Creation

Content creation is demanding. One report shows marketers spend 82% of their time creating content. Since marketers are always being asked to do more with less, spending that amount of time on any one thing makes it difficult to meet goals.

UGC can alleviate some of the work. Primarily, you can decrease your time investment in social content, but savvy marketers use UGC in other arenas too. For example, you could repurpose UGC product pictures in your next newsletter, collate product reviews into a promotional email, or use UGC videos on your website.

By repurposing content, marketers not only ease their workload but they get more mileage out of each piece.

Sources of UGC

UGC is created by someone who is familiar with your brand. Typically, UGC comes from these sources:

Brand Advocates

If you’re looking for a glowing review or a product endorsement, tapping your most loyal customers can generate a strong source of UGC. Sometimes, marketers ask a small team of brand advocates to produce content. Other times, advocates are so enamored by your product they post content without being prompted to do so. Marketers should keep their eye out for brand-specific content and ask permission to share it if it positively promotes the brand.

Employees

Who knows your products better than those who work for you? Your workforce can supply a steady stream of content. Ask employees to make a weekly social post, for example, or put together a small team of employees who are interested in producing content in exchange for extra perks, like free swag, gift certificates, or even a few hours of time off.

Customers

If someone has purchased a product from your company, he or she could create UGC for you. It’s best to make a request right after a purchase is made. For example, you could send an email immediately following checkout to encourage customers to share a picture or an unboxing video.

A growing number of brands use UGC as part of their marketing efforts. Its affordability and ROI make it appealing to marketers, and considering just how integrated social media has become in everyday life, it’s easy for brand supporters to participate in campaigns.

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