Companies that have previously utilized user-generated content already know how valuable it is, as it can be used so that consumers themselves are doing most of the promotion for products or services.
Using this type of content the right way means that companies can also benefit from higher engagement rates and more followers on social media platforms.
That’s because consumers tend to put a lot of trust in organic and user-generated content, especially in comparison to traditional promotional efforts from companies such as ad campaigns.
Most of the time, user-generated content takes the form of photos, videos, testimonials, or reviews that promote a brand online (instead of a brand promoting itself).
According to research, about 80% of consumers trust user-generated content more and have stated that it has a big impact on their purchasing decisions.
The key ingredient that helps consumers make purchases from certain businesses is the authenticity that those companies convey. That’s because these days, consumers aren’t just buying products, since they actively support the brands they’re purchasing from.
The brands they choose to support tend to share the consumers’ own values, interests, and beliefs. All of that makes authenticity a very important factor when buyers are considering where they should be spending their hard-earned money.
With the help of user-generated content, companies can connect with their consumers on a deeper level, show that what they have to say matters to those companies, and show other consumers that the solutions will deliver on their values.
Cost And Time-Effective
Companies tend to invest a lot of time and effort into planning, shooting, editing, and distributing their social media posts. There’s also the financial factor that they contribute whenever they have to outsource any of the steps of the content creation process, such as graphic design, production, and editing. By letting their audiences create content for them, businesses can utilize user-generated content to save on the time and money that they invest into creating content.
Return on Investment
The return on investment (ROI) metric, which is important to many businesses, isn’t only tracked for sales and can be measured for user-generated content too.
This type of content can increase brand engagements and influence consumer purchasing decisions at the same time. In today’s digital world- where social media reach is a constant struggle due to changing algorithms- user-generated content can help companies improve their click-through rates and follower counts.
Lastly, with the help of user-generated content, companies can benefit from third-party validation. This is because, with user-generated content, it’s the consumers who are promoting a company’s products or services.
Most people put a lot of trust in word-of-mouth promotions, which bring companies the highest opportunities for conversions, and user-generated content is a type of word-of-mouth marketing.
The trust they put in word-of-mouth marketing is also one of the reasons why consumers tend to read product reviews before they make a purchase.