UGC as a Low-Cost Marketing Strategy to Increase Conversions
In This Article
Every brand seeks to increase conversions without spending a fortune. User-generated content (UGC) offers a powerful way to achieve this. It’s a proven way to build trust, strengthen customer relationships, and sustain growth.
Research reveals that 93% of marketers believe user-generated marketing outperforms traditional branded content. The reason is simple—UGC reflects genuine customer voices, making it far more persuasive and relatable. This approach is a game-changer for businesses looking to maximize impact while minimizing costs. Whether through social media, product reviews, or curated galleries, UGC opens up endless opportunities.
This blog will explore actionable strategies to incorporate UGC into your campaigns and achieve meaningful, cost-efficient growth for your brand
Let’s dive right in.
Importance of UGC in modern-day marketing
Marketing teams today face growing pressure to deliver better results with tighter budgets. Reports show that most companies allocate 10-40% of their budget to marketing, yet over 70% of marketers say they lack sufficient resources to fully execute their strategies. To make matters more challenging, 75% of enterprises expect their teams to do more with less.
This is where user-generated content (UGC) shines. UGC allows you to achieve impressive results without heavy spending. Instead of investing in high-cost campaigns, you can rely on authentic, customer-created content. It builds trust, drives engagement, and boosts conversions, all while helping you stay within budget. If you’re looking to amplify your brand’s impact without overspending, UGC marketing is an invaluable tool.
Benefits of using UGC in marketing campaigns
UGC has transformed how brands connect with their audience, offering benefits that go beyond traditional marketing. Here’s how incorporating UGC into your campaigns can deliver tangible results:
1. Builds trust and authenticity
UGC resonates strongly with audiences because it reflects real experiences and emotions. Genuine stories create emotional connections and build trust. This makes your brand more relatable and credible while driving engagement and conversions.
For instance, a fitness brand may share customer videos showcasing workouts using their equipment. These testimonials build trust and resonate with potential buyers as they highlight product effectiveness.
2. Increases conversions and customer loyalty
Low conversions remain a major challenge for brands, often stemming from a lack of authentic engagement. Shoppable UGC addresses this issue by enabling one-click purchases directly from customer photos, videos, and product reviews. This seamless integration of relatable content and e-commerce simplifies the buying process, with studies showing it can boost conversion rates by 41%. Additionally, UGC fosters loyalty by valuing customer contributions, strengthening brand connections, and encouraging repeat purchases.
For example, Khoj Crafts uses Idukki to feature UGC on their website’s “Customer Reviews” page. This led to a 16% boost in sales and a 25% increase in followers in 3 months, as customer photos and testimonials enhanced credibility.
3. Facilitates cost-effective content creation
Creating content for marketing campaigns is an expensive affair. UGC helps curtail these expenses by utilizing customer-created materials while maintaining quality, relatability, and effectiveness.
Picture this: A fashion retailer encourages users to post photos wearing their outfits using a branded hashtag. These posts are later repurposed for email campaigns and website banners, saving production expenses.
ASOS, for instance, displays social media UGC on their website. Through pictures of customers wearing their brand’s clothes and designs, they drive engagement, build trust, and boost conversions.
4. Enhances brand advocacy and visibility
When customers create and share content about your brand, they effectively act as brand ambassadors. Their enthusiasm resonates with their peers, inspiring others to trust and engage with your products or services. Additionally, when UGC is shared on social media, it motivates others to create their own content, increasing reach and discoverability.
Take the example of LaCroix, a sparkling water brand. Their website features vibrant UGC photos from fans enjoying the product in various settings, such as at parties, outdoor events, or during relaxation, building credibility and community.
5. Boosts website engagement and paid campaign performance
UGC boosts website engagement and SEO while driving better results for paid campaigns. Adding reviews, images, and videos to product pages increases interaction and time spent on your site, signaling value to search engines and improving rankings.
In paid campaigns, UGC outshines traditional ads with 4x higher click-through rates and a 50% lower cost-per-click. For a clothing retailer, for instance, repurposing customer photos for ads can attract more clicks compared to traditional ads, lower ad spend compared to expensive professional shoots, and drive better results in terms of engagement and conversions.
Value-driven UGC marketing strategy
User-generated marketing is a highly effective, budget-friendly approach to drive engagement, boost trust, and increase conversions. By strategically incorporating UGC into your marketing campaigns, you can tap into customer authenticity and reduce content creation costs. Here is an actionable strategy to help you succeed:
1. Run contests to spark creativity
Contests provide a fun and interactive way to encourage UGC while increasing brand visibility and engagement.
Why it works: They generate buzz, connect customers emotionally to your brand, and yield valuable UGC that you can repurpose across various channels.
How to execute:
- Design themed contests like “Best Room Styling Challenge” or “Favorite Summer Look.”
- Consider featuring winners on your website.
- Promote contests across social media platforms, emails, and on-site banners.
Example:
Vitamix’s Smoothie of the Year contest encouraged customers to share creative recipes. This campaign not only generated UGC for their website and social media but also aligned with the brand vision and products like blenders.
2. Harness the power of branded hashtags
A branded hashtag unifies customer content under a single identity while boosting your online visibility.
Why it works: Branded hashtags build a sense of community and encourage users to share their experiences.
How to execute:
- Create a catchy, memorable hashtag that reflects your brand (e.g., #PlumLove or #VintageHomes).
- Promote the hashtag through campaigns, emails, and product packaging.
- Regularly engage with posts using your hashtag to encourage further participation.
- Use platforms like Idukki to collect and curate hashtag content for marketing.
Example:
Parachute Home uses #MyParachuteHome to encourage customers to showcase how they style Parachute’s home decor products. The content is featured on their website, enhancing trust and conversions.
3. Feature UGC on your website
UGC galleries on your website create a dynamic, trustworthy experience, showcasing real customer stories where they matter most.
Why it works: Displaying UGC increases buyer confidence and reduces friction in decision-making.
How to execute:
- Curate a dedicated gallery featuring customer photos, videos, or reviews.
- Use a UGC platform like Idukki to embed content seamlessly.
- Make the gallery shoppable by tagging products in featured UGC.
Example:
Cluse, a fashion brand, displays shoppable UGC galleries on their website’s homepage. This feature not only enhances user trust but also simplifies the buying process, leading to higher conversions.
4. Repurpose UGC for online and offline campaigns
UGC’s versatility makes it a game-changer for ads and a seamless connector between online and offline touchpoints. Integrating UGC in marketing campaigns across both channels enhances relatability and maximizes engagement.
Why it works
- UGC-based ads outperform traditional ads in engagement and trust since they highlight real experiences.
- Using UGC in offline marketing campaigns connects digital efforts with physical environments, creating a cohesive brand experience.
How to execute an online UGC marketing campaign:
- Social media ads:
- Use UGC for paid campaigns on platforms like Instagram, Facebook, and TikTok.
- Highlight relatable, authentic customer stories or reviews in video and image ads.
- Include a clear call to action, such as “Shop Now” or “Learn More.”
- Example: A skincare brand can run a carousel ad featuring before-and-after photos shared by real users, showcasing the effectiveness of their products.
- Retargeting ads:
- Incorporate UGC in retargeting ads, displaying the exact product a customer interacted with alongside real-life usage photos or videos.
- Example: An e-commerce store can use UGC from Instagram to retarget customers who abandoned carts, significantly increasing conversions.
How to execute an offline UGC marketing campaign:
- In-store displays:
- Use digital screens to showcase UGC from social media, such as Instagram stories, photos, or videos.
- Tag and mention the social media handles of customers to highlight their contributions. This helps in building community by acknowledging their contributions and encouraging others to share their experiences.
- Example: A clothing brand can display customer outfit photos inside their store, encouraging shoppers to try on the same looks and share their own photos. This helps build community and generate a steady stream of content.
- Product packaging and catalogs:
- Include UGC such as photos, reviews, or customer quotes on packaging or product catalogs.
- Example: A cosmetics brand can print UGC on their packaging, making customers feel valued and enhancing authenticity.
- Event backdrops and pop-ups:
- Create branded event displays featuring live or curated UGC from your customers.
- Example: A tech company can run a live UGC slideshow at a product launch, showcasing user testimonials collected through a branded hashtag campaign.
Pro tips for online-offline synergy:
Combine online and offline efforts to create a consistent brand message. For example:
- Encourage in-store visitors to use branded hashtags and feature their UGC online.
- Add QR codes to packaging or thank-you cards to link customers to UGC galleries or other product pages. This inspires them to explore real-life uses and share their own experiences.
Repurposing UGC in ads and brand campaigns ensures your marketing resonates with audiences across every touchpoint, boosting both trust and conversions.
5. Incorporate UGC into email marketing for a personal touch
Emails that feature UGC stand out, creating an authentic, relatable connection with your audience.
Why it works: Personalized emails with UGC feel genuine, fostering trust and increasing click-through rates.
How to execute:
- Add customer photos, quotes, or reviews to promotional emails or newsletters.
- Use content that caters to the recipient’s preferences or past purchases.
Example:
A furniture brand can feature customer photos of styled rooms in their product recommendation emails. This approach increases engagement and helps boost repeat sales.
6. Use social media to amplify UGC
Social media platforms thrive on content that fosters engagement, making them perfect for showcasing UGC. This content resonates with audiences and enhances social media marketing strategies.
Why it works: Featuring UGC builds brand credibility while increasing engagement and participation.
How to execute:
- Share customer-created posts on platforms like Instagram, TikTok, and Facebook.
- Use Instagram Stories to feature UGC and save it in highlights for long-term visibility.
- Collect UGC with a branded hashtag and curate that into Reels or TikTok videos to increase shareability.
Example:
Plum BodyLovin’ frequently shares unboxing and ASMR videos from customers, boosting engagement and building an authentic community.
7. Maximize efficiency and results with UGC platforms
Platforms like Idukki streamline UGC management—from collection to seamless integration into your e-commerce website.
Why it works:
UGC platforms simplify content collection, ensure effective curation, and seamlessly showcase them across key sections of your website for maximum impact.
How to execute:
- Collect UGC seamlessly: Gather content from hashtags, mentions, tags, or direct customer uploads through platforms.
- Curate and refine: Filter and organize UGC to align with your goals and your brand’s aesthetic.
- Integrate across channels: Whether it’s embedding visually appealing galleries, highlighting customer reviews, or featuring testimonials on product pages, UGC platforms ensure a seamless display.
- Analyze and improve: Gain insights into UGC performance through analytics and performance tracking to refine your campaigns further.
8. Reward UGC creators to encourage participation
Acknowledging and rewarding your customers motivates them to create and share more UGC.
How to execute:
- Share user posts on your official accounts, tagging and thanking contributors.
- Offer incentives such as shoutouts, or feature spots on your website.
Example:
A bakery can share customer photos of their products on Instagram Stories, thanking each contributor with a personalized message.
Implement cost-effective UGC marketing with Idukki today
User-generated marketing boosts conversions, builds trust, and amplifies your brand’s reach. Authentic customer content drives deeper connections while reducing the need for expensive production.
With Idukki, you can effortlessly collect, curate, and embed UGC, turning customer stories into powerful marketing assets. Idukki helps you create dynamic, shoppable UGC galleries that drive conversions and elevate your shopping experience.
