As our society continues to become more and more digitally connected, it is even more important for businesses to connect with their consumers on a deeper level. User-Generated Content (or UGC) has emerged as a powerful force in this area. Properly utilizing this strategy helps shape consumer perceptions and influence purchasing decisions.

UGC offers a unique opportunity for businesses. This marketing style lets you build trust, nurture a sense of authenticity, and encourage increased brand advocacy. This article will outline the benefits of this content and how you can harness it for your small business.

What is User-Generated Content (UGC)?

As the name suggests, user-generated content, or UGC, represents text, images, video, or other media that is created and uploaded by a website's users, rather than by the company itself. This can be as simple as the comments section for a piece of media (like a blog post). Or it can be almost as complex as you can imagine — a full marketplace of information and media developed by your community.

UGC can be the source of big business as well. Some of the most well-known companies in the world rely on this form of content as centerpieces for their business plans. Facebook, X (formerly Twitter), and LinkedIn are just a few examples.

As you can see, social media companies engage in the most prominent model for leveraging UGC. However, you don't need to be a globe-spanning behemoth with millions (or even billions) of users to take advantage of this strategy. There is plenty of room for small businesses and startups, from almost every industry, to gain benefits from encouraging this content.

What are the benefits of UGC for your small business?

People respond differently to UGC. As a marketing tool, this content has an impact that can't be replicated with any marketing materials that you can produce in-house. While it might lack in professional polish, content created by your users contributes a sense of authenticity that can send your brand to a new level.

The statistics bear this out. One study found that nearly eight in 10 consumers (79%) reported that their purchasing decisions were heavily influenced by UGC. On the other side of the spectrum, the same survey indicated that only 13% of respondents had the same reaction to brand-generated content.

Clearly, your customers and potential customers are more likely to respond favorably to UGC. But why is this true? What factors make this form of content so much more effective? To answer those questions, here are some of the specific benefits you receive from integrating UGC into your strategy:

• Gives increased credibility: People trust other people more than they trust companies. Your target audience will respond better to content created by other users.

• Doesn't require your input: UGC appears on its own. You'll need to invest in ways to encourage and host it, but the actual content will get posted without effort on your part.

• Generates conversation: UGC often spawns more UGC. People enjoy interacting in comment sections and other similar forums — meaning they spend time thinking about and discussing your products and services.

• Nurtures a community of customers: The conversations generated through UGC will connect your users to each other. This, in turn, will connect them to you.

• Fuels higher engagement: By encouraging UGC, you'll have a stickier relationship with your target audience. You'll nurture fans rather than customers.

• Improves SEO: Hosting UGC can give you a boost in search-engine algorithms. You'll get better placement in search results, further helping you find new customers.

• Eases the sales process: With positive UGC, your past customers become your best salespeople. Over time, this should improve both conversion and retention rates.

• Lets you learn about your customers: The content that users generate can be a significant source of information. Utilize this data to improve your products and better steer your development activities.

How to build a UGC-driven marketing strategy

As we’ve noted, one of the benefits of UGC comes from the fact that you don't need to produce content directly. However, this creates new challenges as well. You can’t make UGC. You can only do your best to create the right conditions where it can thrive.

This dynamic leads to a crucial question: how can you encourage UGC from your audience? Here are the steps you can take to implement a marketing strategy that utilizes this kind of content:

Research best practices

Learn as much as you can about UGC. This includes a deep dive into industry standards and playbooks that have worked in the past. Your research should include all aspects of the strategy, from technology upgrades you might need to the right policies for ramping up and maintaining a thriving UGC culture.

Don't think that you need to do everything on your own. Your process might also involve talking to consultants or third-party providers. These experts can help shape your strategy and streamline your approach.

Look at the competition

As part of your learning process, review what your competitors are doing. Try to gauge what has been working for them. Note what you like and don't like. This can create a cheat sheet as you roll out your UGC strategy.

Increase your social media investment

We mentioned earlier that a close connection exists between social media and UGC. Given these conditions, any consideration of UGC needs to include a detailed discussion of your social media strategy. Take advantage of the way these concepts dovetail with each other. As you proceed, reorganize your social media strategy to fit your UGC plans.

Surface interesting content

Encouraging UGC is just the first step. To use this content as a marketing tool, you need to spotlight the posts that can influence sales decisions. Use email marketing, ad campaigns, and social media to surface the most interesting and convincing items your customers create.

Engage in the conversation

UGC also offers a chance for a conversation. Respond to comments and other media posted by your customers. Foster a dialog with the people talking about your company. This will inspire the creation of further content, raise your profile, strengthen the connection with your audience, and burnish your brand.

Offer incentives to post

Make the creation of UGC worth your customers' while. This motivation can come in the form of praise and attention — surfacing interesting content and engaging with your users represent good places to start. However, you can also offer more material benefits by staging contests or offering goodies (like discounts, early product trials, and access to exclusive information or content) for people who upload UGC.

Create a moderation process

Having UGC dedicated to your small business helps nurture a feeling of community. You need to protect this by making everyone feel safe and welcome. It's important to guard against toxic comments and inappropriate content.

Establish guidelines and develop a system for enforcing them. This moderation represents a critical step in your UGC strategy. It will help you cultivate an environment ideally suited to promote the kind of user-generated content you need to fuel a new level in your marketing efforts.

Unlocking the power of UGC for your small business

Building a UGC marketing strategy could be the answer your small business has been looking for. Unlocking the potential here can fuel growth, spread the word about your company, and improve your brand. Positive user-generated content, especially on social media, will help your startup become a trustworthy and preferred name.

Positive user-generated content, especially on social media, will help your startup become a trustworthy and preferred name.

Taking full advantage of this vital part of marketing requires a dedicated strategy. Use the information in this article to get started. You’ll understand what benefits you can receive and have a good idea of how to ramp up the next stage of your UGC plans.