Businesses in the digital age have adopted a powerful and more streamlined online marketing approach. And why shouldn’t they? After all, most of the world can be found online, cruising through hundreds of ads a day. Many of the social media platforms are a way for businesses to more effectively reach their target audience.
But personal referrals to your friends are still the most effective. Anyone who knows you will at least check out what you are talking about. Word-of-mouth and User Generated Content (UGC) have become some of the most powerful sources of genuinely effective marketing tactics today.
UGC is any type of content that has been created and put out there by unpaid contributors or, to use a better term, fans. You basically market the product for the business for free.
This could be triggered by a good personal experience of their product or good customer service. Many businesses are beginning to understand the potential of user generated content and are trying to tap into this resource. Coca-Cola found a way. The Share a Coke campaign became one of the most successful user-generated campaigns to date.
Why Should You Care About This?
UGC promotes customer oriented businesses as customer preferences change. In a competitive market, if a business does not promote such a style, the target audience will seek another brand that does. This goes out for smaller businesses that suffer because they are unaware of their customer’s interests.
But such business have an advantage in being small: they can be transparent with their customers online, and this helps build brand loyalty and trust. Inevitably, some customers who are impressed with the service might even generate content, further enhancing the organization’s reach and scope.
Another factor to consider is the number of people who are gradually losing patience and trust in a lot of marketing strategies. People want personal connection or a personal experience that is shared. Smaller businesses have an edge over this, as they do not have high budgets for marketing. By simply focusing on the existing customer database, the business can promote a better image of their brand.
The most important factor is that user generated content creates a community on its own. These customers, therefore, vouch for the company whenever they meet new people. Social media platforms can have their statuses and videos showing their complete trust in the product, which attracts new customers.
UGC is cost-effective, because it’s all about the user creating content. They aren’t paid to do what they do, but you can benefit from the results, whether they share their experience or build connections. If smaller companies can tap into this by investing in giving out prizes to winners who promote their product, they can increase brand loyalty and eventually attract more customers. These campaigns could be cheaper to carry out than advertisements, and can save resources.