Why is User Generated Content (UGC) so important?

UGC stands for ‘User Generated Content’. That is to say ‘User Generated Content’. This marketing concept, which may sound strange, is one of the keys to the content strategies implemented by the largest companies in the United States.

User Generated Content (UGC) is a way for users to stop being mere consumers and become content creators. Your clients become your allies and share their opinions, experiences and perspectives on networks, with others. This helps a lot to improve your sales, because it generates information that is later used by other users who are thinking about buying your product. That’s why UGC has so much value.

In this article, we tell you why UGC or user generated content is so important and we explain with examples how you could use it in your content strategy.

Why is User Generated Content (UGC) so important?

Imagine that you are on the Mercado Libre website, looking for a new toaster and you feel overwhelmed by the multiple options available. Finally, you manage to narrow your search to three outstanding options: How do you know which is the best product for you?

These toasters are in the same price range, seemingly identical in design, and you don’t recognize any of the brands you see. In essence, they are practically the same toaster, but with different brands.

Which one do you prefer? How to choose?

Surely, to make your purchasing decision, the next step will be to check the reviews, images and videos that other users have shared about the product. And in this way, be as sure as possible of choosing well.

Imagine then that one of these toasters has countless reviews from UGC users. Each review comes from a verified buyer and there are dozens of photos to accompany it: from the packaging, the unpacking process, to the toaster in action. The other roasters, on the other hand, do not have this valuable user feedback.

At this point, the decision is clear. You buy the toaster with reviews. Without hesitation and with a single click: you buy the toaster with the best reputation (social proof) in user reviews.

Social proof as a decisive element

This social proof today, whether through testimonials or reviews, guides much of the purchasing behavior of online consumers. And this, friends, is why UGC or user-generated content is so important. UGC like reviews is one of the most powerful forms of social proof. And it can mean the difference between making a sale or not making one. Furthermore, social proof has an incremental effect on ecommerce. The more opinions and reviews, the more sales. This is a clear example where the famous Pareto principle is fulfilled, and 80% of sales are generated by 20% of the brands, or products.

The importance of User Generated Content (UGC)

In short, User Generated Content (UGC) has become a fundamental pillar in the digital age. Its importance lies in its authenticity and ability to encourage community participation, key elements to capture attention in a world saturated with information. By being created directly by users, UGC offers a unique and genuine perspective, increasing the trust and credibility of the brand or platform. From an SEO point of view, this type of content is invaluable. By being constantly renewed, it improves search engine positioning, attracts more traffic and increases visibility. Additionally, by being shared and commented on frequently, it expands organic reach, significantly improving online presence. In short, UGC not only enriches the user experience but also boosts SEO performance naturally and effectively.

That is to say, there are many advantages and reasons why using a user-generated content strategy can help you boost sales and improve your business. Next, we tell you what are the 10 main advantages of applying UGC strategies:

Advantages of UGC:

  1. Valuation of the Community:
    First, UGC allows brands to demonstrate the value they provide to their community. By sharing content created by its users, a relationship of reciprocity is established, making community members feel valued and recognized.
  2. Credibility and Authority:
    Second, consumers tend to distrust purely commercial content. Genuine opinions and testimonials from users provide greater credibility and authenticity to the brand, establishing a relationship of trust with potential customers.
  3. Differentiation and Visibility:
    Third, user-generated content allows brands to stand out from the competition. As the users themselves promote the brand, barriers of mistrust are broken and visibility is gained without the need to invest in traditional advertising.
  4. Scope Expansion:

Fourth, user-created content has the potential to go viral, allowing you to reach a broader audience without incurring additional costs, maximizing brand visibility.

  1. Emotional Connection:

Additionally, UGC, being real and authentic content, generates an emotional connection with the audience. Shared stories and experiences strengthen the relationship between the brand and the consumer, creating a deeper and more lasting bond.

  1. Promotion of Fidelity:
    Additionally, the UGC acts as a public statement of commitment to the community. By valuing and sharing user-generated content, strong bonds are created that foster customer loyalty and retention.
  2. Low Economic Cost:
    Likewise, UGC is a strategy that requires minimal financial investment. Users generate content spontaneously, allowing brands to save on content creation and advertising, maximizing return on investment.
  3. Impulse in Purchase Decisions:
    Another important point, authentic and real content generated by users guides potential customers in their purchasing process. Opinions and testimonials act as references that increase the trust and credibility of the brand.
  4. Creation of Brand Ambassadors:

Second to last, UGC encourages the creation of an active community of users who act as ambassadors, promoting and defending the brand on different platforms and contexts.

  1. Knowledge of the Target Audience:

Finally, analyzing the content shared by the audience allows brands to better understand the needs and preferences of their customers, offering valuable insights for future strategies and business decisions.

Conclusion

In conclusion, UGC directly influences potential customers’ decisions about whether or not to buy your product or service. And it is a concept closely associated with the concept of social proof introduced, for the first time, by the Italian Robert Cialdini in 1984. That is, it refers to the idea that people need to confirm a decision with other people in certain situations. What it has been in plain words: where is Vicente going? Where people go. And this is essential to understand, because by adopting UGC strategies, brands can not only benefit from an increase in their popularity, but they also benefit from greater sales and stronger relationships with their consumers. For these reasons, UGC is becoming so important in content marketing. And that is why it has so much potential in Latin America.

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