What Is UGC and How Do You Use It in Marketing?

Did you know that 55 percent of consumers won’t buy a product without user-generated content? If you’re not utilizing User-Generated Content (UGC) in your marketing, you’re missing out on massive opportunities to reduce your marketing costs, earn authentic trust, and increase your conversions by up to 190 percent. Here’s your quick guide to what you need to do to get started, and why you can’t afford not to.

What is User-Generated Content (UGC)?

UGC stands for User-Generated Content. It is any content about your brand that is created that is not by your brand. This could be written reviews, customer social media posts, customer photos and videos, testimonials or any content created by a fan, advocate, or your customer themselves.

UGC is created by peers (consumers), as opposed to brands. It can be created as a response to your brand (organic UGC) or paid for by your brand (UGC marketing). UGC levels the playing field for small and medium businesses against their larger competitors. Why? Consumers trust other consumers. Nielsen research found that 92 percent of consumers value authentic user-created content over brand ads. And according to Bazaarvoice’s Shopper Experience Index found that consumer purchasing behavior is highly reliant on peer recommendations—84 percent of consumers trust UGC over traditional advertising.

Types of User-Generated Content for Your Marketing Strategy

Your audience will engage with certain types of UGC differently and each type serves a different place in your marketing funnel. Keep in mind that some customers will prefer to hear from a peer while another will only trust a verified review. Know the four types of UGC all small businesses need in their marketing plan.

• UGC-Specific Influencers or Creators reaches new audiences with content that is more relatable than a traditional ad. The more filtered, produced and commercialized, the less effective this form of UGC becomes. If you choose to go this route, choose micro or nano influencers (1,000-100,000 followers) who create raw and unfiltered content, reach your target audience, and are in your budget. These channels are a fraction of the price of most traditional influencers and are often up for content repurposing across your channel.
• Customer Reviews and Testimonials is the cornerstone of UGC and should be displayed as prominently as possible on your product pages, homepage, and checkout flows to assuage purchase anxiety.
• Social Media Content is a wide category of UGC that includes customer photos, videos, brand mentions, tags, unboxing videos, and everything in between. Showcasing your customers in an authentic setting is one of the most effective ways to market your product.
• Blog Posts and Case Studies are long-form UGC that highlight the value you are providing. Case studies and customer success stories as well as guest posts provide more depth and help to solidify your positioning in the marketplace.

The Business Benefits of UGC Marketing

UGC not only speaks for itself, it drives tangible business outcomes that contribute to the bottom line. UGC creates a ripple effect of benefits that touch every aspect of your marketing strategy, from SEO to customer retention. Let’s break down why UGC marketing delivers exceptional ROI for small and medium businesses.

• Enormous Cost Reductions: UGC obviates the need for traditional, costly content such as photoshoots, professional copywriting, elaborate video productions and hefty influencer marketing budgets. You’ll be amazed at the value you derive from UGC versus paying top dollar for every marketing asset.
• Build Authentic Trust: Trust is the currency of the customer experience and UGC is one of the most effective ways to build it through the psychological concept of social proof. Customers hesitate less and buy more when they see unbiased, social proof of how others feel about your products.
• Increase Conversion Rates: Brands implementing UGC strategies consistently see significant conversion improvements, with some companies experiencing dramatic sales increases after adding customer content to their product pages.
• SEO Improvements: UGC content provides a stream of updated material, which is a key signal to search engines. The effect of fresh, organic material and free keywords from customer reviews improve search rankings and help increase time-on-site and decrease bounce rates.
• Improved Customer Relations: UGC content gives your customers a chance to share their voice, become brand advocates and grow a community around your brand. This leads to better customer loyalty, which is important because the cost of retaining a customer is 5-25x cheaper than acquiring a new one.
• Gain Valuable Insights: UGC content serves as a mirror of your company culture, language, customer pain points and opportunities for improvement. All based on a product or service they’re already using.

How to Create a UGC Marketing Strategy

You don’t need an agency and a million-dollar budget either — you do need to plan and execute, but a solid UGC roadmap can get you there. In a few easy steps, you can learn how to build a UGC program that consistently provides authentic content and measurable business impact.

Step 1: Set your objectives

First things first: decide how UGC will serve your business. It might help to know that most brands aim to impact brand awareness, conversion, and retention metrics, and focus on the platforms that customers already use.

Step 2: Identify potential creators

Your most likely and qualified content creators are happy customers, brand enthusiasts, and your own employees, which means research by Tintup indicates that as many as 50 Percent of consumers will be more willing to create content if a brand provides tips and information on how to do so.

Step 3: Make it easy to share

Make your UGC branding hashtag simple, so it’s more likely to be memorable. Integrate a system to collect reviews, and include social sharing prompts in your on-packaging, at the checkout, and in your post-purchase emails.

Step 4: Give creators guidance and incentives

Be transparent with what types of content you’re looking for, and build a list of incentives that are both irresistible and cost-effective.

Step 5: Always ask permission

Make it a habit to ask users for the rights to use their content. Simple and effective: a direct message asking to use the content and giving due credit. Builds goodwill and leads to more UGC.

Proven UGC Campaign Ideas

These proven formats have helped thousands of small businesses get great content and build better customer relationships. Begin from scratch or add a new twist to your existing UGC strategy. Here are a handful of practical (and affordable) tactics that will activate your audience and get you started with an endless supply of authentic content.

Micro-Influencer Partnerships

These partnerships leverage creators who are experts at producing authentic, relatable content that customers trust like peer recommendations rather than slick ads.

• Target micro (1,000-10,000 followers) and nano-influencers (up to 100,000 followers) who charge $100-$500 per post instead of big bucks for celebrity endorsements
• Exchange free products for honest reviews, unboxing videos, or tutorials—always negotiate content rights first, so you can repurpose and reuse their content across channels
• Choose creators based on audience demographics and interests rather than follower count (niche creator with engaged followers who match your ideal customer profile will provide better ROI than larger accounts with less targeted reach)

Hashtag Campaigns

Through hashtag campaigns, you can create easy-to-search threads of content that users can find and follow across platforms. Keep them easy to remember, unique, and easy to spell.

• Design a branded hashtag that’s less than 20 characters, easy to spell, and unique to your brand so you own the domain—run it through a search first to double check
• Promote your hashtag everywhere: on product packaging, in email signatures, in-store signage, receipts, and social media bios so customers see it at every touchpoint
• Curate the best user submissions on your own channels and tag the creators to boost their content and encourage them to keep creating

Photo and Video Contests

Photo and video contents can generate high participation rates if they’re attractive to your customers and the entry requirements are simple.

• Establish clear contest rules and submission guidelines in your contest copy. Keep entry requirements low—usually just posting the photo/video with your hashtag and tagging your account
• Select prizes that appeal to your ideal customers. Your own products, gift cards, or experiences related to your brand perform better than generic products or gift cards
• Promote the contest like crazy for the first 48 hours to get it off to a strong start, then continue to share user entries throughout the contest period to build excitement

Review Incentive Programs

Review incentives are ethical incentivization tactics that drive honest feedback. 87% of consumers read online reviews for local businesses, according to BrightLocal.

• Send automated review requests 7-14 days after purchase, when customers have had time to experience your product but it’s still fresh in their minds
• Offer small, non-contingent incentives for leaving any review, like discount codes or loyalty points. Don’t offer incentives for positive reviews only
• Make it easy by including direct links in your email to your preferred review platforms (Google, Yelp, Facebook, or industry-specific sites like RetailMeNot, iHerb, RateMDs)

Customer Spotlight Features

Customer spotlights showcase stories of customers and their experiences with your brand on your website, social channels, and email newsletters to foster stronger community ties.

• Contact customers who have shared exceptional results or creative product uses on their own social media and see if they’d be willing to share their story more in-depth
• Build a consistent content format (interview-style Q&A, before/after images, or video testimonials) that’s simple to produce on a regular schedule
• Feature a diverse range of customers from different demographics, use cases, and experience levels to help every audience segment relate to your brand

Common Mistakes to Avoid

It doesn’t matter how well designed your UGC plan is—if you make one of these mistakes, you risk damaging your brand’s reputation and integrity. Avoid these common UGC pitfalls:

1. Posting Content Without Permission: Never share or repost customer content without asking first. Permission to use content is a legal requirement that’s easy to violate. Ask permission via direct message, get it in writing, and credit the user by name or handle. Copyright infringement can damage your brand reputation and result in hefty fines.
2. Deleting Negative UGC: Negative feedback is a natural part of any business. Rather than deleting negative reviews, respond in a personal, professional way within 24-48 hours, empathize, and resolve issues when possible. Customers are more likely to trust brands that respond to negative reviews with sincerity and care. Removing negative reviews (unless they’re spam or libel) signals you’re unable to take constructive criticism.
3. Creating Fake UGC: Never post fake testimonials, reviews, or user-generated content. Fraudulent content destroys consumer trust permanently and violates FTC guidelines.
4. Excessive Curating and Loss of Authenticity: Avoid heavily editing or filtering user content—this loses the authentic charm that makes UGC special. The goal is to share real experiences and organic moments, not polished brand content. Include a mix of content including “flaws” and casual moments to maintain variety and authenticity.