If you spend any time on social media, like Facebook or X (or Twitter), you’ve likely come across a post by a mutual or a friend talking about a product or service. A coworker might rave about a restaurant they tried the weekend before, or a relative might be complaining about a faulty charger they’d bought from an online shop.
Posts like this are examples of user-generated content (UGC). As the name suggests, UGC is content created by the user, not the brand. It’s for this reason that it’s often seen as more authentic and trustworthy than content created by companies or marketers.
You could think of UGC as a modern, digital version of those product testimonials you used to see on late-night TV, but a lot more convincing and, importantly, capable of reaching — and influencing — millions of people.
In this article, we’ll explore what UGC is, why it matters and how you can use user-generated content marketing to grow your eCommerce business.
Table of Contents
• What Is UGC, and Why Does It Matter to eCommerce Businesses?
• What Is UGC Content?
• Benefits of User-Generated Content
• UGC in eCommerce. Four Ways Consumer-created Content Drives Sales
• The Role of Online Reputation Management (ORM) in UGC Campaigns
• Maximize the Impact of User-Generated Content With Thrive Local
What Is UGC, and Why Does It Matter to eCommerce Businesses?
UGC is any brand-specific content created by customers and users and posted on social media, forums and other online platforms. It comes in many forms, such as reviews, testimonials, videos and images.
It might seem like a new marketing tactic, but UGC has been around for at least as long as websites and social media platforms have allowed users to create their own content. The spread of UGC today is fueled significantly by the shift in consumer behavior and technological advances that have turned internet users from passive audiences into active creators.
By building trust and authenticity, UGC helps brands positively influence purchase decisions and drive eCommerce sales.
What Is UGC Content?
There are many types of user-generated content (UGC), and they can be found everywhere online, from websites to social media platforms and online forums like Reddit.
Examples include:
• Product reviews on review websites
• Instagram photos and videos tagged with a brand
• TikTok videos demonstrating how to use a product
• Hashtag campaigns where users share their experiences with a specific product or service
• YouTube tutorials or “how-to” videos featuring a product
• Live streams featuring product demos or real-time user feedback
• Stories or posts showing “before and after” results using a product
• Shopping haul videos on TikTok and YouTube
• Polls, Q&A sessions or quizzes initiated by users and shared in connection with a brand
• Blog posts written by customers sharing in-depth reviews or experiences
• Comments or discussions in online forums or community groups mentioning a product or service from a specific brand
• Unboxing videos on YouTube
Benefits of User-Generated Content
So, why does consumer-generated content matter to eCommerce brands?
Because consumers prefer authenticity and are more likely to trust their peers than a brand, you’re in a better position to convert someone if they saw your product from an unboxing or a before-and-after video than if they found it in a paid ad.
When someone sees a real person enjoying a skincare product or sharing their honest opinion about a vacation destination, it resonates in a way that traditional, polished ads often cannot.
User-generated content marketing involves amplifying real customer voices to engage audiences and drive sales. It encompasses various strategies, including sharing customer reviews, showcasing testimonials, promoting user-created photos and videos as well as encouraging social media posts with branded hashtags. By incorporating authentic, customer-driven content into your campaigns, user-generated content marketing builds trust, fosters engagement and creates an emotional connection between your brand and its audience.
The numbers back this up: Studies show that:
• 92% of consumers trust peer recommendations more than any other type of advertising (crowdtap).
• Millennials account for over 50% of global spending (Visual Capitalist).
• Consumers in this generation trust UGC 50% more than traditional media (crowdtap).
• About 43% of U.S. adults said they regularly read online reviews of local businesses (Statista).
• 90% of consumers say they have posted about an experience with a brand or product in social media (crowdtap).
UGC is particularly essential for eCommerce-only and click-and-mortar businesses. When your target customers can’t physically see, touch or try a product before purchasing, UGC helps bridge the gap. A glowing testimonial or Instagram post showing a product in action can provide the reassurance shoppers need to complete a purchase.
What’s more, you can reap the advantages of user-generated content without spending a lot of money. Since your customers are the ones making posts, images and videos about your offerings, you don’t have to pay for the content creation part of the process.
Of course, you’d need to get their consent to repost or share their content on your website or social media pages, but many customers are happy to grant permission, especially if it means their content gets featured by a brand they love. This not only saves your business money on production costs but also boosts customer loyalty and trust, as people feel valued and recognized when their contributions are put front and center.
UGC in eCommerce: 4 Ways Consumer-Created Content Drives Sales
From startups and small businesses to big-name brands like Apple, Coca-Cola and Ikea, companies of all sizes and industries are using UGC to increase their reach, build brand loyalty, and boost their earnings.
Here’s how UGC works to drive eCommerce sales:
1. It Builds Trust
It’s no surprise that consumers tend to trust recommendations from their peers more than those from brands or marketers. Consumers continue to prefer authenticity and relatability over polished, over-produced advertisements, and they’re more likely to be influenced by a review from a real customer than an ad from a brand extolling the virtues of its own product.
For consumers, UGC confirms the real-world value of a product or service by offering unfiltered insights from people who have firsthand experience with it. Unlike traditional marketing, which shows what brands want you to see, UGC reflects genuine use cases, challenges and benefits, which resonate more deeply with potential buyers.
Here are some examples of UGC in marketing that can help build trust by placing a spotlight on the quality of your offerings:
• A customer’s Instagram post showing them enjoying a meal at a restaurant
• A TikTok video of someone demonstrating how to use a new kitchen gadget
• A written review on a brand’s Google Business Profile, detailing a customer’s experience with their customer service
• A photo shared on X of a user wearing a specific clothing item
• A video testimonial from a satisfied customer of a plumbing service
• A comment on a brand’s blog post offering feedback or insights
2. It Improves SEO and Search Rankings
One of the primary advantages of user-generated content is its impact on search engine optimization (SEO). SEO is a crucial component of a long-term digital marketing strategy and a foundational element of a brand’s online presence. SEO refers to the many processes involved in improving the quantity and quality of traffic to your website by optimizing it and its content for both search engines and human users.
One of the characteristics of a well-optimized website is engaging, relevant and high-quality content. This is because search engines like Google prioritize websites that provide value to the user. As part of SEO efforts, brand websites typically incorporate visuals like images and infographics, blogs, articles and interactive elements.
Consumer-generated content can help support your SEO efforts in many ways, including the following:
• Providing Content: Sharing UGC on your website ensures a steady stream of fresh content, signaling to search engines that your website is updated regularly.
• Incorporating Keywords Naturally: User reviews, testimonials and captions often include keywords relevant to your products or services, enhancing your site’s search engine visibility without needing forced optimization.
• Boosting Engagement Metrics: UGC, such as customer photos and videos, encourages longer time spent on pages and higher interaction rates, which search engines interpret as indicators of valuable content.
• Increasing Backlinks: Unique UGC campaigns or viral content can attract backlinks from other websites, further boosting your domain authority.
• Enhancing Local SEO: Customers who share reviews or content about your business, especially with location tags, can improve your visibility in local search results.
Integrating UGC in marketing not only enriches your content but also reinforces your overall SEO strategy by driving engagement, relevance and credibility.
3. UGC in eCommerce Influences Purchase Decisions
People are naturally wired to mimic the actions of others in unfamiliar situations.
For instance, when entering a new coffee shop, a person might watch others to see where to order, using the crowd’s behavior as a guide to avoid mistakes or confusion. This is “social proof” in action.
Similarly, in eCommerce, consumers tend to search for social proof in the form of reviews and recommendations before making a purchase decision. This behavior stems from a desire to avoid risk and make choices that feel validated by others’ experiences.
UGC functions as social proof, building trust and simplifying decision-making for potential customers who might be on the fence about your brand. Some examples are:
• Customer Reviews and Ratings: Star ratings and written reviews provide authentic insights into products.
• Social Media Highlights: Branded posts shared by customers lend credibility to a company and its offerings.
• Customer Success Stories: Detailed testimonials or case studies shared by customers offer compelling narratives about how a product or service has made a difference for them.
• Unboxing and Product Demonstration Videos: Content created by customers showcasing their experience adds authenticity and helps answer potential questions about the product.
So why does social proof matter? We can’t stress this enough: Shoppers trust the experiences of others. This trust is what makes them more inclined to complete a purchase when they see that a product is popular and well-reviewed by their peers.
Apart from boosting buyer confidence, social proof helps reduce decision fatigue. With so many options available, decision-making can feel overwhelming. Social proof simplifies the process by highlighting a few top choices, thus narrowing the customer’s options.
By strategically integrating social proof, brands can enhance trust, improve engagement and encourage shoppers to take the next step in their buyer journey.
4. It Enhances Customer Engagement
Consumer-generated content encourages conversations between businesses and consumers. When a brand shares a customer-created video on its social media pages, it helps customers feel more connected to and valued by the brand. This strengthens their emotional bond with the company, thus fostering brand loyalty.
Additionally, a user-generated content strategy encourages community-building. Through UGC shared by brands, customers can see their experiences being acknowledged along with those of their peers, creating a sense of inclusion. In turn, this can help turn customers into advocates who create more UGC that further encourages engagement with the brand and its community.
UGC that features real people using and enjoying a product builds trust, reduces skepticism and helps shoppers visualize how the product fits into their lives. This implied reassurance makes it easier for customers to move from browsing to buying.
What’s more, brand advocates tend to share their positive experiences with friends, family and followers as well as actively promote the brand online and offline. This increases brand recognition and reach, both of which contribute to more organic traffic and higher conversions.
The Role of Online Reputation Management (ORM) in UGC Campaigns
It’s important to remember that customers don’t necessarily produce UGC without prompting all the time, and not all of the UGC they do post is positive. And, while most marketers recognize the role of UGC in building trust and driving eCommerce sales, few are well-versed in generating and curating it.
Online reputation management (ORM) helps brands monitor, respond to and use UGC — both positive and negative — to strengthen their online presence.
ORM is the process of actively monitoring your reputation and influencing how your brand is perceived online. It enables businesses to not only leverage positive UGC but also address and mitigate negative content, ensuring the brand’s image remains strong and credible.
Using ORM to highlight UGC helps drive eCommerce sales by building trust and credibility.
“An ORM strategy allows clients to amplify positive reviews, testimonials and other UGC to push sales on websites and related landing pages,” said Tim Clarke, Senior Reputation Manager at Thrive Local.
“Consumers trust UGC more than manufactured testimonials and other company-produced information.”
The benefits of ORM for UGC eCommerce campaigns include the following:
• Boosts Brand Credibility: A strong ORM strategy showcases positive UGC while addressing customer concerns, demonstrating that your brand values feedback and is committed to improving.
• Encourages More UGC: Customers are more likely to share their experiences when they feel heard and appreciated.
• Mitigates Negative Impact: By promptly addressing and resolving negative feedback, ORM helps prevent potential reputational damage and reinforces customer trust.
But can small businesses and startups leverage the benefits of UGC and ORM without a significant investment?
According to Clarke, signing up for a managed software solution is a great option for businesses that want to try incorporating UGC and ORM into their strategy while saving time and resources.
“Thrive Local, for example, is affordable and will save our clients time and effort in ORM,” he said.
At Thrive Local, our ORM experts support brands in their UGC campaigns by:
• Generating High-Quality UGC: We use proven tools and a detailed user-generated content strategy to encourage your customers to leave reviews, testimonials and social media posts.
• Curating Submissions: We filter and showcase the best customer-generated content that aligns with your brand’s values and goals.
• Monitoring Mentions: We keep an eye on online mentions of your brand, so we can swiftly identify and amply positive discussions about your business.
• Addressing Negative Feedback: We respond promptly and professionally to customer complaints or unfavorable reviews to resolve issues and demonstrate accountability.
With a data-driven and proven ORM strategy, businesses can turn UGC into a powerful tool for building trust, fostering loyalty and driving long-term sales growth.
Maximize the Impact of User-Generated Content With Thrive Local
User-generated content (UGC) builds trust, boosts SEO and increases customer engagement. It’s an affordable and effective way to connect with your audience, grow customer loyalty and increase your eCommerce sales.
Integrating UGC into your strategy requires thoughtful curation and diligent management. For expert guidance, turn to Thrive Local.
Our online reputation management (ORM) company specializes in helping businesses:
• Encourage high-quality UGC, like reviews and testimonials
• Highlight positive content and mentions
• Respond professionally to feedback and resolve issues
• And more
Ready to grow your brand with UGC and ORM? Take the first step — contact Thrive Local today for a consultation. Let’s work together to strengthen your reputation and drive your eCommerce business’s lasting success.
