Shoppable UGC - Why it’s Fast Becoming ‘The New Normal’
In the wake of the Covid-19 crisis, the world of retail has continued to shift increasingly online. With platforms such as Instagram seeing almost 1000 images uploaded every second, it’s clear to see why more and more businesses are utilising this surge of user generated content to build awareness of their brand and develop deeper connections with potential customers. But what exactly is UGC and how can companies best incorporate it into their marketing strategy?
How it Started
Put simply, UGC is any form of content, most commonly images or video, posted by users on digital platforms. In the last decade alone, social media behemoths such as Instagram and TikTok have redefined the way we behave online. Through these sites, users strive to communicate an authentic sense of self in a meaningful and impactful way. From a marketing perspective, this has offered businesses an exponential opportunity for wider, and crucially, more meaningful exposure.
How it’s Going
With the Covid-19 Pandemic upending the brick and mortar retail industry and accelerating the shift to digital, more and more brands are looking to channels such as Shopify and Facebook Shops, utilising content created by users to drive social E-commerce sales. Today, 85% of people surveyed claim that UGC has more influence on their buying decisions than content directly created by the brand itself. Through capitalising on the growing trend of shoppable content experiences, agencies can further simplify the path to purchase for their customers. UGC can reap numerous rewards when factored into a brand's paid media funnel, rapidly making E-commerce transactions easier, faster and more engaging.
Advantages of UGC
Authenticity - In today’s digital market, UGC is arguably the most effective way to create and maintain an authentic brand identity. When users see a company share their content, they feel connected and therefore more likely to pursue a relationship with that brand in the future. This also allows potential consumers to view your products via already satisfied customers, establishing a sense of trust and proof of quality. Shoppable UGC allows businesses to not just advertise to their customers, but to advertise with them.
A Picture Paints a Thousand Words - The more visual a piece of content is, the more memorable it is. Image and video are the most primary forms of UGC, with users striving to make their content as memorable as possible. Customers who reach a brand’s site via user-generated video are 184% more likely to make a purchase. Not only that, an average user will then go on to spend 45% more than they would have otherwise.
Free Exposure - Rather than sinking half the marketing budget on a photographer, companies can now utilise their social media savvy customers to create free advertising through the high-quality video and images they share. In fact, experts predict that in 10 years, shoppable UGC will be the most cost-effective form of marketing strategy.
Ways of Implementing UGC Strategy
Hashtag contests - Consumers are competitive. With a UGC hashtag contest, a company places customers at the centre of its campaign, sharing content across numerous social channels to boost brand awareness and, ultimately, sales. During the pandemic, Nike gave TikTok users the chance to win a pair of #MagicBoots by uploading a video of themselves performing football tricks. The campaign reached 317 million views, 160K video entries and increased Nike’s following by 215K.
Reviews - Over 70% of consumers claim they wouldn’t make a purchase before reading product reviews. Allowing customers to communicate their user experience publicly and directly to a brand shows that they are valued and that their voice is being heard. Furthermore, a wealth of favourable reviews and feedback will help to solidify a brand as both trustworthy and popular.
Influencers - Social media influencers can be one of the most fruitful aspects of a business' UGC strategy, providing legitimacy and mass exposure to a brand. Research has revealed that for every $1 US companies are spending on influencer marketing, they are making $5.20 back. Companies can find the right influencers for their brand either by searching for appropriate hashtags or content or through tools such as Klear or Grin.
Know Your Audience
Gen Z and Millennials are the most likely demographics to create content about their experience of a brand. Both groups find pictures and videos to be the most helpful form of media when making purchase decisions. This is perhaps why these consumers favour channels such as Instagram and TikTok over more text based ones.
Rooted in visual communication, Instagram continues to prove itself as the frontrunner of UGC platforms. Approximately 75.3% of US businesses are now on Instagram, with over 200 million people visiting at least one business profile every day.
UGC and Covid
The Covid crisis has greatly accelerated the retail industry’s steer towards digital platforms and social commerce. Tapping into the collective desire for authentic human connection, companies have moved further away from traditional limitations of advertising, instead, placing their customers at the very heart of their story. Even as the world begins to open up again post-pandemic, it’s likely that we will see far less distance, social or otherwise, between companies and their consumers.
Get in touch today to tell us about you UGC strategy or if you would like a team of award winners to form one for you.