Three Ways Brands Can Utilize User Generated Content (UGC)
What is one of the least expensive, yet most effective marketing tools? Word of mouth.
Think about it. When someone mentions seeing a movie, the typical response is, “Oh, what did you see?” Followed by, “Did you like it?” Whether the response is positive or negative, we believe we’re getting an honest review from someone we trust and whose opinion we respect. And, research confirms this. According to a Nielsen survey, 92% of consumers believe their friends and family over any advertising.
As people increasingly spend more time on social platforms, anyone with a phone can be considered a friend or family. This reality has led to an increase of user-generated content (UGC) which brands can incorporate into their marketing strategy.
UGC is original, brand-specific content created by consumers and published on social media or other channels. The content comes in many forms, including images, videos, reviews, testimonials, or even podcasts.
Our co-founder Kim Lawton, CEO of Enthuse Marketing, recently wrote an AdAge article on how UGC can help brands connect authentically with their consumers.
Kim highlights that UGC drives $6 trillion in annual global spending and is estimated to account for 13% of consumer sales.
How can brands source UGC and leverage the assets on their marketing channels?
In the article, Kim details three specific strategies:
Understand the algorithms – Make sure to give followers a direct call to action and a way to track results. A distinct and unique hashtag is an excellent way to collect content. For example, Reprise Activewear uses #wearplants in all their captions and can see if social media users are using the hashtag in connection to their brand.
Welcome feedback from consumers – Product reviews, testimonials, and surveys are more than just UGC. For brands on e-commerce platforms like Amazon or Faire, feedback is incorporated directly on the platform. Customers can also include pictures along with written reviews.
Create an ambassador program - An ambassador program helps to formalize the process of recruiting and familiarizing consumers with your brand. These can be paid or unpaid—with unpaid bringing one caveat: A brand generally provides influencers with free products in return for UGC and in accordance with FCC regulations, those individuals must disclose this information with #sponsored hashtags. You can find all disclosure requirements here. Entrepreneurs need to determine the ROI before diving into this strategy. You can find influencers by directly messaging them on social media channels, looking into influencer platforms, or utilizing web-based platforms like Shopify. Bake Me Healthy incorporates Shopify’s platform on their website and offers ambassadors commission on the products they sell.
In a world filled with fake news, suggested social media ads, and sponsored posts, it’s hard to determine what’s authentic and what’s not. UGC should provide credibility to your product – like a friend gushing about their meal last night. It shouldn’t feel overtly salesy. It’s a delicate balance.
Bottom Line: Word-of-mouth marketing has been around for decades, officially getting its name in the 1970s. People will continue to rely on peer recommendations, especially with the evolution of new technology and artificial intelligence capabilities. Incorporating UGC into your company’s marketing mix authentically will help your brand stand out.