In an increasingly digitalised world, the lines are blurring between businesses that appear professional and credible and those engaged in fraudulent activities. Building consumer trust is therefore becoming an ever-higher priority for companies. The aim is to establish a credible presence in a highly competitive business world. An ideal tool for achieving this goal would be User Generated Content – UGC for short. What is User Generated Content?
UGC as Digital Word-of-Mouth
The method of UGC is comparable to the word-of-mouth marketing that we are all too familiar with – with the difference being that it takes place digitally. Every day, even if mostly unconsciously, we are confronted with both variants.
For example, if our neighbour buys a new household appliance and enthusiastically mentions that it was an absolute bargain for the price and performance. Or, if we want to be sure whether a planned restaurant visit is worthwhile and we quickly grab our mobile phone to search for reviews. Precisely because it is a supposedly unbiased opinion, this information is enough to change our view of the company or the product.
Being able to retrieve subjective information directly is a considerable advantage on the one hand, as it creates transparency and trust. On the other hand, it can become a challenge for the company, as the content cannot be controlled – however, this is precisely what makes it a smart and influential marketing tool. More on the opportunities and risks later.
Was ist User Generated Content – eine Definition
User-generated content appears subtly but constantly almost everywhere online.
Wherever a consumer can create and publish media content in the context of a product or service, it is referred to as user-generated content. This includes encounters with reviews, letters to the editor, and blogs that specifically report on experiences. However, social media posts from third parties that visualise the good or service also fall into this category.
So, whenever a consumer can actively interact with a text, an image or a review, user-generated content is created and immediately implemented.
To effectively use this method, it is fundamental to formulate a clear call to action for leaving reviews or other content. For example, it is advisable to request feedback after a purchase, whether verbally or digitally. This can then be used to provide potential buyers with authentic feedback from previous customers and to position yourself as a trustworthy company in an increasingly digitalised market.
Tip: Actions, prize draws or hashtags can provide a small additional motivational boost, encouraging customers to rate the brand and its associated experiences and share them on social media.
The potential of UGC
Above all, with large investments, trust is of fundamental importance. Buyers want to be able to rely on the product meeting a certain standard, and being of tested, high quality. This desired certainty regarding the aforementioned points can be provided by user-generated content.
User-generated content (UGC) proves particularly useful for start-ups or brands entering a new market for the first time. Due to the as yet non-existent brand awareness, concerns are alleviated during research and when encountering reviews, trust increases, and the purchasing decision is simplified. Furthermore, embedding the opinion of existing partners strengthens customer relationships.
Structural risks
When weighing up and deciding how and where to use user-generated content, the risks also come to light, despite all the profitable aspects.
In addition to the potential loss of control over the message, there is also the fear that a negative comment could jeopardise the company's reputation.
However, what should not be overlooked here is the possibility of specifically identifying, analysing and incorporating customer-identified deficiencies into error management. This way, they can be used as a tool for quality management and actively contribute to improvement.
When it comes to investments, expansions, or risks, you always seek a third opinion. So why not for business development? After all, deficiencies (e.g. regarding customer support, communication and compliance) often go unnoticed by the company itself.
More than just a marketing strategy
UGC is far more than just a trendy marketing strategy.
It is a source of transparency, trust, authenticity, and social proof.
In summary, the opportunities of user-generated content outweigh the risks. It not only increases a company's authenticity but can also uncover products or services that require optimisation. Whether positive or negative, user participation supports company progress and long-term customer loyalty.
Here you'll learn more about how crucial content can be in online marketing.
