Home Business Insights & Advice Why incorporating user-generated content on social media will increase sales

Why incorporating user-generated content on social media will increase sales

by Sarah Dunsby
29th Feb 24 1:09 pm

User-created content (UGC) is made by regular people, not companies, and can be about anything. It could be someone showing off a new outfit, or sharing a meal they had at a restaurant; it could be sharing thoughts on a product or experience on a blog or on social media. One of the great things about UGC is that it’s real and relatable- because when we see someone like us enjoying a product or having fun with it, it feels genuine, almost like a friend’s recommendation rather than an ad shoved in our faces. And that’s why it’s so powerful for businesses; it builds trust with customers because it’s a real person’s experience. Here’s why UCG is crucial for businesses to take advantage of, particularly if they’re looking at selling more on social media.

Realness builds trust

UGC feels authentic and relatable. People trust it more because it’s from everyday people, not big brands or celebrity endorsements. When they see real people using and enjoying your products on sites like Facebook or Tiktok, it builds trust in your brand and increases the likelihood of making a purchase. You can hire a tiktok ads agency that specialises in things like Tiktok advertising and make this work for your business.

Engaging conversations

UGC encourages conversations and sharing between people because when customers post about your products, it can spark a discussions among your friends and followers. This engagement increases your brand’s visibility and creates a sense of community around your products. People talking about your products can lead to word-of-mouth recommendations amongst friends and colleagues and online. The more talked about your brand and products are in a positive light, the more that trust will grow with customers.

Showing it works

Seeing others enjoy your products gives others proof of their quality and effectiveness. It shows that they work and that what you sell is good quality and worth buying. This is especially useful if you sell online, even with good pictures people can only gauge the quality of things if they can see or feel them in person. User generated content shows people using your product in alternative or innovative ways, too and gives others ideas and makes it all the more tempting to buy. This helps overcome scepticism and boosts people’s confidence in your brand, ultimately leading to increased sales!

Cost effective marketing

Marketing is essential in business; it’s vital for success and not just an afterthought. But marketing can be expensive, so getting your brand name out there that doesn’t cost a lot will always be good news for your business. UGC is a cost-effective marketing strategy because instead of spending money on creating content yourself, you can leverage the content created by your customers for free. Encouraging users to share their experiences with your products generates a steady stream of authentic content that can resonate with others in your audience without breaking the bank.

Building brand advocacy

UGC turns satisfied customers into brand advocates- when people feel valued and appreciated by your brand, they’re more likely to share their positive experiences with others. When customers advocate for your brand, they become your biggest fans, spreading the word and building trust with their networks. Word of mouth can travel fast and far, so having loyal brand advocates can make all the difference in boosting your sales and building a strong, lasting brand reputation.

Improving products based on feedback

Listening to your customer’s feedback in UGC can help you understand what your customers like and dislike about your products and give huge, valuable insights that benefit your business. By analysing the sentiments expressed in UGC, you can identify any areas for improvement and make changes that can better meet customer needs. This continuous feedback loop means that your products keep evolving to align with your customer’s preferences, boosting their appeal and driving sales.

Measuring success and ROI

UGC can be measured and then used to evaluate its impact on sales performance and return on investment. When you track metrics like your engagement rates, conversion rates and customer acquisition costs associated with UGC campaigns, you can assess how effective your strategies effectiveness. This data-driven approach means refining your UGC initiatives and allocating resources more efficiently to maximise sales outcomes.

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