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The Power of UGC in DTC E-Commerce Advertising; Everything You Need To Know

UGC

January 9, 2022

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“I have a wonderful product that I know my consumers adore,” you might be thinking, “but why isn’t anyone talking about it?” These online reviews and posts are what we identify as User Generated Content (UGC) and there is a reason why certain brands are more successful in collecting UGC than others. It all comes down to brand loyalty and effective marketing strategies. UGC facilitates your brand to stand out in the congested DTC landscape. It goes far beyond just providing your customers with what they want.

This article will take you through everything you need to know about UGC, including how to obtain it, and how to integrate it into your marketing strategy.

 

What Exactly Is DTC?

Direct to consumer firms have developed a new approach to e-commerce success that involves delivering things directly to the customer. When a brand sells directly to its end customers rather than through a retailer, distributor, wholesaler, or another outlet, it is referred to as Direct to Consumer or DTC.

 

What Is User Generated Content (UGC)?

Any text, video, image, or review provided by a person rather than a brand is referred to as User Generated Content (UGC). This includes photos taken by consumers and shared on social media, workplace selfies, product reviews, Instagram stories, YouTube videos, and even podcasts about your company. It can take many different forms, such as before and after images, Pinterest pins of your product, unboxing videos, and so on.

 

Why UGC Is Indispensable in DTC E-Commerce?

For DTC brands to thrive, they need to focus on two things: authenticity and visibility. In fact, when it comes to picking a brand to buy from, 90% of buyers claim that authenticity is extremely important. But ironically, yelling about how genuine you are is inauthentic. Instead, give your customers the power and allow them to provide proof for you.

According to studies, around 60% of consumers feel User Generated Content (UGC) is the most original and authentic configuration of content. It has been found that 86% of women use social media to get insightful shopping tips and recommendations. 56% of people go on social media to specifically look for their friends’ advice on which products to buy, while 32% of consumers claim that they rely on customer reviews.

The best aspect is that User Generated Content (UGC) such as reviews and customer images can be seamlessly integrated into the buying process. This is crucial for DTC brands. They are fundamentally different from traditional sales approaches in that they control every step of the buyer’s journey. By including a powerful kind of content such as UGC, they may deliver a comprehensive and customer-centric shopping experience that fosters community and increases conversions.

That is why UGC, has become such a powerful and vital tool for DTC brands to promote their products and boost sales.

 

Reasons Why You Should Use UGC for DTC E-Commerce?

As more DTC firms emerge to build direct customer interactions, it is more important than ever to include User Generated Content into marketing platforms. This is due to the fact that UGC elicits consumer emotions. It is indeed more relatable, motivating, engaging, and influential for them than branded content.

Below is a few of the wealth of benefits that your DTC brand could reap by employing UGC marketing.

Better Reach

When a buyer reviews your product online or on social media, you can reach a wider audience. It is likely that this audience also shares the same qualities as your target market, indicating that they are qualified consumers. People are more tempted to click on a photo of a peer using a product than on a staged product photo in general. As a result, your product becomes more popular, and the top of your sales funnel becomes wider, attracting more people who are interested in your offering. UGC thus helps to broaden the reach of your product marketing, increasing your audience and driving more visitors to your store.

Drive Purchases

Whether or not a customer makes a purchase while they are shopping on your site is strongly impacted by the power of UGC you employ. In fact, finding proof that something works is an important component of the decision-making process. This ‘evidence’ is usually in the form of your product reviews. Studies show that 70% of customers seek online ratings and reviews prior to purchasing a product. Interestingly, 41% even go to the extent of finding around 4 to 7 photo and video reviews to confirm the authenticity of the product in determining if it is actually worth buying. In reality, even though product reviews can assist shoppers to advance to the next step in their purchasing journey, what actually proceeds them to check out is the engaging photo and video reviews. This manifests the fact that UGC bridges the gap between a browsing shopper and a paying customer.

 

Boost the Brand’s Credibility and Authenticity

We have all been there: we order something online, and when it arrives, it is nothing close to the product in the advertisement nor what we expected. To acquire that perfect shot for the product descriptions and advertisements, brands frequently use heavy studio lighting and ideal staged angles. While this makes the product look amazing, it can also make it tough for shoppers to set realistic expectations. This is why user-generated content is so vital for DTC brands. Using actual examples of people using your product in their daily lives may help to develop credibility. This trust is crucial in determining whether or not someone will buy your product.

The Viral Social Media Component

Another advantage of UGC is that it strengthens one of your company’s most potent marketing channels: word of mouth. In reality, user-generated photographs have the potential to “go viral,” which simply means that a huge number of people will share them on social media. People are more inclined to share an engaging video or image about a product than they are to post your 3-paragraph rant about the purchasing experience.

Build International Market Trust

For growth oriented DTCs, global expansion is a primary priority. Brands may reach new audiences and increase their awareness by breaking into niche markets throughout the world. Entering these marketplaces without proof or prior ties, on the other hand, can be a prescription for disaster. This is where UGC comes to the rescue, giving new consumers the social proof, they require to feel comfortable purchasing from an unfamiliar brand.

Gain a Competitive Edge Through Customer Reflection

Reviews cast light on individual customers’ experiences. If DTC brands want to acquire a competitive advantage, they must transform this experience into something really enjoyable. In a saturated and competitive business, creating a smooth customer journey is critical for generating trust and loyalty which is something DTC brands strongly rely on.

Product Improvements With Social Listening

The primary focus of direct-to-customer brand marketing is on the customer and addressing their demands. Hence, social listening is fundamental for any DTC company that aspires to be its clients’ first option. Brands often use this strategy to comprehend their social reputation and the opinions of customers about their offerings. Including UGC into your direct-to-consumer marketing strategy empowers your customers to say more about your company. This will in turn help you in enhancing your products to suit your customers’ needs.

 

How To Encourage UGC From Customers?

Have you ever wondered how companies get so many people to talk about them on social media? Here are a few thought-provoking UGC best practices for DTC brands that you should not ignore.

  • Create a hashtag and urge your audience to upload images with your product using the hashtag as a means to enter contests and giveaways on social media.
  • To engage your audience, ask questions and use polls. You may post your followers’ responses on your social media stories and utilize poll results to generate statistics for use in other marketing materials.
  • It is all about the overall product experience, including packaging. Images of visually appealing and thoughtfully designed products are often shared on the internet and are a popular trend on social media.
  • Use Instagram’s highlight reels or establish a section on your website highlighting customers with your product to put your UGC on display. Other customers will be enticed to post using your goods in the hopes of being featured by your company.
  • Customers should be able to easily share their feedback on social media. Use embedded social sharing buttons on your review forms or in your review request emails to accomplish this.
  • Soliciting product reviews is an excellent method to begin gathering UGC. To automate this procedure and collect more reviews from your consumers, you can use post-purchase review requests.
  • Customers that post about your brand need to be rewarded. Offering discounts to consumers who post reviews with photo and video content is a simple way to accomplish this.

 

UGC Strategy for DTC E-Commerce

Let us talk about some ways you can put your UGC collection to good use now that you have started collecting it. Below are a few strategies used by DTC brands to leverage User Generated Content to boost conversions.

Website

Showcase your media reviews and testimonials at the top of your review area on your website. Choose a few of your favorite customer images and make a section on your website dedicated to them.

Instagram

Share posts that you have been tagged in or that contain your hashtag in your feed or highlights area. Another brilliant technique to generate additional visual content for Instagram is to use media assets from your reviews area.

Twitter

Ask relevant and stimulating questions to engage your audience and use this platform to allow followers to enter your contests and giveaways. Another technique to build social proof on your feed is to retweet and comment on tweets regarding your product.

Pinterest

Pin your greatest visual content and include shopping links that lead back to your website. Another wonderful strategy to reach new audiences is to use customer photos in sponsored Pinterest advertisements.

 

Wrapping Up

One of the most effective ways for DTC brands to advertise their products is by showcasing their customers using them. In fact, User Generated Content has become a crucial component in many DTC e-commerce websites and social media sites. No longer will you be left wondering how other firms are attracting so much online attention from their clients. It is now your turn. Take advantage of these stimulating marketing techniques to begin constructing your UGC arsenal.


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