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UGC Definition: How Ecommerce Sites Can Crush it

UGC is written in blue font on the blocks

Have you heard of the term UGC? For online shoppers and regular internet users, it’s nothing new. The term has been known to many people online for quite a while. More than just a review or rating that you see on someone’s social media, UGC provides a broader, more significant purpose. Are you ready to know more about it? Read on to find out!

UGC Defined

Meaning of UGC

UGC or ‘user-generated content’ is any content form such as images, texts, videos, reviews, etc. that are created by consumers about a certain brand or product. It is considered a powerful way of promoting goods and services along with the consumers themselves. That’s why social media platforms like Twitter and Instagram have become popular among online shoppers and marketers.

User-Generated Content is now a viral way of marketing any product or service that ensures a big increase in sales. Its contents are raw and natural which makes people easily convinced about a brand. Even experts predicted UGC to be the next most effective and economical strategy for marketing just 10 years from now.

UGC Product Review and Ratings

Show five-star reviews in front of your computer

“9 out of 10 users incorporate reviews as a deciding factor while making a purchase decision.”

– Jennifer Morris

User-generated reviews are now the best way to convince a customer about a product’s quality and usefulness. It highly influences brand conversion and reputation as consumers know they come from the experience of fellow consumers who have tried it already.

These reviews from users are authentic and pure which can be in written or visual form. Real customers share them publicly for others to see and consider before buying the product or choosing a brand. Moreover, consumers consider product reviews as a more reliable source of information instead of those brand promos that tend to be fabricated and unrealistic.

User-Generated Content Boosts Your Sales

Content is king is shown on a photo using the text

According to Spiegel Research, products with five user reviews have a 270% purchase likelihood which is higher than that of zero reviews. This means that potential customers who add to your sales each month depend greatly on the reviews they see about your brand. It is a great part of their purchase journey, thinking about something that they won’t regret buying later on.

In simpler words, UGC can increase your sales when they can persuade more consumers. According to a report, a majority of marketers agree that successful content is authentic and of high quality.

However, if you try faking a post or review about your product, you should be ready to lose your position in the company. Consumers easily detect this and instantly lose their trust in your brand and others. In the future, keep in mind that UGCs most often only come from your customers, brand loyalists, and employees.

Advantages of Using UGC

#1: User-Generated Content Makes Your Customer the Hero

Your loyalists become your hero, saving you from a lot of things and giving you even more in the process. Satisfied customers are those who are proud to share with everyone that wonderful experience they had with your product. It’s like their way of showing appreciation and gratitude for the way it turned out for them. Some customers also include photos and videos of them using such products to support their reviews. Overall, loyalists truly are the best!

#2: Customer Trust Other Peoples’ Opinion

Consumers believe that user-generated contents are more trustworthy. Both young and old agree that UGC can be trusted 100% when it comes to the effectiveness and quality of the product they bought. Likewise, only 25% of consumers believe in branded content. In the same manner, some people also love to share or express their experience with your brand. Oftentimes, they post it on various social media such as Facebook and Instagram where a lot of people are always online.

#3: User-Generated Content is Great For Branding

Word of mouth marketing written on notepad with illustration

UGC is the new word of mouth form of marketing today that defies all others in terms of its influence on consumers. The more organic the reviews are, the more trustworthy it becomes for consumers. Thus, UGC helps promote your brand by presenting opinions from real humans. UGC also serves as social proof for a brand, telling new customers that the product is worth their money. This makes the connection between the customer and the seller deeper which eventually leads to brand loyalty.

#4: User-Generated Content is Affordable

Advertising can sometimes be income-generating, but most of the time it requires spending some money before anything else. However, with the help of user-created content, advertising and promotion of products and services have been so much easier than in the past. Almost 80% of consumers say that UGC affects their decisions on any purchase they make.  Therefore, when people see other customers having a nice time with the same product they want to buy on social media, they automatically feel convinced that the product is not a waste of money. Brands don’t need to pay anyone anymore to post about them and their products on social media because existing users already create that for them. It is, thus, affordable and less complicated.

#5: UGC Has a Positive Impact on Google Rankings

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Ecommerce is highly inclined in SEO or the search engine optimization process. It is through SEO that a website appears somewhere in Google and other search engines. Your Google ranking thus becomes better when you’re able to use SEO in the best way. For that reason, a list of the most essential functions of SEO for online businesses is provided.

  • Provides important phrases and words from product/ service reviews.
  • Offers a great source of content.
  • Allows your brand to be on top of other brands on the search page.

How Ecommerce Sites Beat UGCs

When eCommerce is combined with user-created content, nothing is impossible. Both are very powerful and useful elements of a successful business. If you’re asking if eCommerce really can ruin UGCs, the answer is yes! But, success is easier if you can use them both. UGC is an effective tool eCommerce has today and there is no reason to crush it or ruin it. Make your brand promotion more relevant to your customers through user-created content. Use what you learned from this blog carefully.