“Content Is King” has been the dogma in digital marketing for quite some time. But not all content is good content. Trust in advertisements and branded content is steadily declining and consumers are increasingly demanding a personal and more customer-oriented shopping experience. Effectively integrated User Generated Content from Instagram offers exactly that - and has many other advantages beyond that.
Serve Social Proof to new Customers and drive Conversions
Numerous studies show that social proof frequently affects decisions in everyday life. The feeling that many others consider something to be good or right often has a positive effect on behavior. This mechanism also applies to purchasing behavior. Seven out of ten buyers consider the opinions of other customers. Over 80% rely on recommendations from friends and acquaintances when purchasing products for the first time. Only around 50%, however, consider advertisements to be credible.
Digital Social Proof served in the form of User Generated Content counteracts this loss of trust and helps brands to establish a more appealing and personal image. UGC comes directly from customers and thus provides authentic and versatile impressions of products and services. In addition, UGC can often answer a whole bunch of questions that customers might ask themselves before making their first purchase, for example regarding fit or functionality. This often has a positive effect on purchasing decisions.
Higher Conversion Rates through building a strong Community and binding loyal Customers
In addition to inspiring new customers, the use of User Generated Content for marketing purposes also significantly contributes to building a strong community and increasing customer loyalty. The direct interaction that takes place through individually requesting usage rights for every single piece of content, as well as the prominent display of the collected content on the brand website or other marketing channels convey a feeling of being valued and recognized to the individual customers.
A prime example for this is served by our customer erlich textil. The brand for underwear and home textiles has been collecting User Generated Content under the branded hashtag #seierlich with squarelovin since 2017. The images and videos are prominently placed in the form of a teaser gallery on the homepage of the erlich textile website and are also frequently featured on the brand’s Instagram account. By doing so, erlich textil clearly places their customer at the center and shows: Beauty is just as diverse as every single person in their community. Instead of picking a handful of models, erlich textil proudly presents authentic diversity and imperfection and thereby strengthens the sense of community among its customers, which also positively affects customer loyalty.
More Conversions with better Ad Performance
A study conducted by Outbrain in 2019 shows that online ads are particularly popular when they offer the recipients a feeling of added value, personal relevance and inviting content. In contrast, the study also shows that 66% of the respondents generally skip advertisements that they find annoying. Such a negative experience can possibly have a long-term impact on the perception of a brand.
Likewise, a positive customer experience in relation to online advertisements can also start off a profitable cycle. After a positive advertising experience, about every third person remembers the associated brand. This also results in increased awareness of the brand in everyday life and makes it more likely that the respective consumer will become increasingly aware of online ads placed by the respective brand in the long term.
Especially in the area of social ads, ads enriched with User Generated Content show a much stronger performance. With an on average 300% higher Click-Through-Rate compared to branded content ads, both the Cost-per-Click and the Cost-per-Acquisition for social ads are 50% lower on average. After the integration of UGC in Facebook Ads, some brands report up to 4.5% higher Conversion Rates and 6.9x higher Engagement Rates.
Increase Average-Order-Values with UGC
The implementation of User Generated Content also offers the opportunity to present a wide range of combinations of multiple products. Our customer JUNIQE, for example, integrates User Generated Content on product detail pages and shows how customers arrange and combine art pieces at home. Whenever more than one JUNIQE artwork is featured in a customer picture, the other products are also linked and customers can buy the whole set with just a few clicks. This tends to positively affect the Average-Order-Value in the long term.
Effectively Embed UGC to optimize your Conversion Rate
There are a number of free tools that can be used to embed individual Instagram posts or entire profiles in the form of a gallery. However, these usually link back to Instagram, causing users to leave the original website and possibly even cancel their purchase. There is also a high probability that customers who have accessed your website in search of inspiration will continue to browse the social media platform. In the worst case, sponsored advertisements from direct competitors might pop up and lead to them buying there.
The squarelovin UGC tool helps brands collect customer images based on mentions, hashtags or geo-locations, filter them according to individual preferences, legally secure their use and place the content on all relevant marketing channels. For each image and video essential usage rights are requested individually in accordance with data protection law. The effective integration of User Generated Content strengthens customer loyalty and significantly improves the performance of websites and web shops.
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