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Advantages of Leveraging User Generated Content for Retailers

Customer shopping habits have changed rapidly over the past decade. Customers today are looking for retailers that they can connect and engage with. Retailers must also change their marketing methods to interact with customers in an organic manner and provide an authentic brand experience.

One of the methods that is gaining popularity is the use of user-generated content (UGC). UGC is social media content created and shared between customers. Consumers want to be recognized for their input and as a result, retailers can benefit from the online discussion of their products. UGC can allow retailers to engage with their customers before, during and after a purchase. It provides customers with opportunities to promote the brands they like.

UGC in Marketing

UGC goes beyond mere likes or shares on social media. Customers often upload well-captured photographs or videos of the product. This content may even include comments and feedback about their experiences while using the product. Customers also leave reviews or offer recommendations of products they’ve purchased and used. UGC lets existing customers speak to future customers.

Given a choice between believing an advertisement by a retailer or a recommendation by another person, consumers tend to choose the latter. In fact, 93% of the consumers feel that UGC is helpful when making a purchase decisions.

Customers are continually bombarded by advertisements, but the impact is especially powerful when a customer feels a connection with another customer's experience. UGC works best when the message is real and authentic.

For example, cosmetics retailers benefit when their customers share pictures while wearing their products. Make-up artists are very popular on Instagram and they endorse the cosmetics brands they like. Followers of these make-up artists see these recommendations as credible and as a result, they are more likely to buy based on the recommendations. This user generated content showcases how the product works with a practical example, and without a heavy sell by the manufacturer/retailer. The result is that the credibility of the make-up artist is translated to the product and subsequently to the manufacturer/retailer.

UGC in Customer Retention

As a retailer, your job is to attract customers. However, it is equally crucial for you to nurture existing customers. How often are you creating rewards or special offers based on your customers purchase history? Have you considered utilizing UGC to showcase related or compatible products to existing customers?

You've made a big investment in attracting and nurturing your customer base. Don't lose it!

  1. Find UGC for your products where ever it exists and get it in front of new customers. Let your existing customers and fans do some of the hard marketing work for you. 
  2. Use social media to create an online community where users can discuss the products they’ve bought and offer recommendations to each other. Repost the best content on your official channels.
  3. Encourage customers to discover and share multiple uses of a product. Use UGC to showcase the versatility of your products. This retains old customers while drawing in. Retailers can also hold events like sales to boost customer interaction.

Artificial Intelligence in Curation of UGC

UGC is a key element of a successful marketing plan. With the growth of social media, content is being created every second. This can become an invaluable resource. The problem is that most of this content is uncurated as it's published. 

Learn to leverage Artificial Intelligence (AI) to augment your marketing team. You can employ AI to curate UGC and use it for your benefit, by helping your human curation teams to curate faster and with higher accuracy. A side effect is that you can quickly become aware of product issues or bad publicity from a user review, and avoid the business risk associated with that. New ways of employing the content are coming out as the digital channels continue to diversify. You must curate UGC if you want to harness its power.

Trust is key. The conversations initiated by UGC can boost your bottom line. Nurture and reward your best content creators, and you'll see your customer base grow.

Of course with a growing customer base comes increased brand awareness, customer reach, and revenue.

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