Ecommerce businesses need their customers not only to buy from they but also to introduce the brand to their friends and families. Importance of word of mouth is well-known. But what if the customers could share your brand online with everyone, even with the people they don’t know? What if they could share photos, videos or just their thought on websites? This is called User Generated Content (UGC).
Anything that is created by the users but not by the brand is user generated content. Posting your Starbucks coffee on Instagram, taking an unboxing or review video of your new smartphone or the articles on Wikipedia, or just reviews on your product page… They are all examples of UGC.
But why is it so important for ecommerce businesses?
What’s so great about UGC is that it is free and voluntary acts of users. People do want to stay trendy, so if you can create a trending event about sharing content on social media you immediately get tons of content. Coca-Cola’s Share A Coke campaign got many people to buy a coke with the name of either someone they know or their own. So suddenly internet was full of photos of coke bottles. This was a great way of engaging people with the brand, getting them to associate the brand with fun, and personally advertise the brand on their own social media channels. Result: free ads that generate even more purchases!
As people start sharing your campaigns voluntarily your brand will get introduced to many others. This creates a great opportunity to win new customers, and maybe convert some of the indecisive people into customers.
Also if you are a small ecommerce business free ads means everything. Saving on resources, and getting known by people create great opportunity for these companies to expand their businesses.
More trustable reviews
When we are looking for things online we usually check what others think first. These things can be movies, clothes, university courses, restaurants, you name it. Usually what happens is people don’t believe in what a company says, but they believe what other people who are similar to them have to say. According to a study 85.57% of the participants said that they would very often read the reviews before purchase. So a good rating of the product or service becomes very important for both seller and the customers.
The impact of word of mouth is huge. With the UGC customers trust on the product if the reviews are good for it. The reviews are more reliable since the person who doesn’t belong to the company and who doesn’t get money will say what he or she actually thinks of the product. Other potential customers who see the comment will take it more seriously than what the company says about the item. A 2013 study showed that 79% of users trust reviews online as they would do with personal recommendations. The same study says 85% of consumers read online reviews for local businesses. So even if you are a global company or a local one you should always care about the reviews of your products and brand.
Even though reviews are very helpful o ecommerce companies must pay special attention on the reviews. As the studies suggest reviews are very powerful on influencing potential customers. Thus, if there is a bad review it will change the way people think of your brand. So you should take necessary actions to solve the problem, and make sure it doesn’t happen again.
Engaging and Loyal Customers
As brands support UGC, people become more familiar with the brand. They start sharing and creating content for the brand. And the famous foot-in-the-door technique suggests that once they have done something for the brand they won’t hold back from doing more in the future.
Thanking for their comments, trying to figure out a solution if they have problems, sharing the photos they uploaded on Instagram etc. would get them to have a positive experience with your brand. Eventually it will get you loyal customers who enjoy creating content for your brand.
Encouraging user generated content is definitely worth the effort for these three main reasons. Engaging customers with creating contents helps a business to get free, more trustworthy ads, and gain customer loyalty for the brand.
User Generated Content definitely helps ecommerce companies get more visitors. But what turns visitors into customers is having competitive advantage.
Tracking competitors’ prices to understand where you stand in the market and what you can do to improve your business helps you gain competitive advantage. See how Prisync might help you as it already does for ecommerce companies with competitor price tracking from more than 50 countries.