User Generated Content: The Basics

What is user-generated content?

User-generated content is any fan engagement that is repurposed by brands to drive sales or marketing

messages

#ecommerceUGC

Ratings & Reviews

#ecommerceUGC

Photos & Videos

#ecommerceUGC

Collaborative Filtering

#ecommerceUGC

A Little History…

It all started with comments and user reviews

The founding fathers of user generated content

#ecommerceUGC

And they still got it…

Reviews were revolutionary for their time…

We’re taking a different approach. We want to make every book available—the good, the

bad, and the ugly...to let truth loose.— Jeff Bezos

And user-generated content is still evolving…

User-generated content is creeping up on all of our marketing channels. That’s where

content is trending.— Moira Gregonis, Urban Outfitters

Why is UGC important for retailers?

#ecommerceUGC

Why is UGC important for retailers?

• 75% of reviews posted on review websites are positive.• 95% of unhappy customers will return to your business if

an issue is resolved quickly and efficiently.• 71% agree that consumer reviews make them more

comfortable that they are buying the right product/service.• 70% of people consult reviews/ratings before purchasing.• People are 63% more likely to purchase a product from a

site if it has product ratings and reviews.• Customer reviews create a 74% increase in product

conversion.

#ecommerceUGC

The UGC Maturity Model

On-Site Social Social On-Site

Collect and display UGC on-site

Engage users on social networks

Engage users on social networks, then pull that content back on-site

#ecommerceUGC

The UGC Maturity Model

On-Site Social Social On-Site

Ad Value

Engagement

Conversion

#ecommerceUGC

The UGC Maturity Model

On-Site Social Social On-Site

Ad Value None

Engagement

Low

Conversion High

#ecommerceUGC

The UGC Maturity Model

On-Site Social Social On-Site

Ad Value None Moderate

Engagement

Low Moderate

Conversion

High None

#ecommerceUGC

The UGC Maturity Model

On-Site Social Social On-Site

Ad Value None Moderate High

Engagement

Low Moderate High

Conversion

High None High

Takeaways:

Frame the conversation by driving engagement on-site.

Pull user-generated content back to your product pages to generate conversions.

Why do Customers Want UGC?

#ecommerceUGC

UGC Performs 4 Key Functions

Social Proof Merchandising TrustFan

Celebration

#ecommerceUGC#ecommerceUGC

Key Insight: Website browsers are inherently looking for signals and social cues to help them make purchasing decisions. UGC solves an

informational asymmetry.

“Social proof… is driven by the assumption that surrounding people possess more knowledge about a given situation.”

#ecommerceUGC

Merchandising

Product Shot User Image• Most products are easier

to evaluate in person than online

• Merchandizing with user generated images provides tactility

• Increase the amount of time-on-site

#ecommerceUGC

Trust

Emails I signed up for 56%Online video ads 48%Ads on social networks 48%Display ads on mobile 45%Online banner ads 42%

Recommendations from people I know 84%

Online consumer opinions 68%

To what extent do you trust the following forms of advertising?(Neilsen, 2013)

#ecommerceUGC

Trust

#ecommerceUGC

Fan Celebration

Adoption of UGC in the IR500

#ecommerceUGC

Where are we now?

On-Site Social Social On-Site

IR 500• 73% of retailers use product reviews• 69% of retailers use product ratings• 19% of retailers use collaborative filtering

#ecommerceUGC

Where are we now?

On-Site Social Social On-Site

What % of the IR 500 uses:

Facebook 85%

Twitter 79%

Google+ 36%

Instagram 14%*

Pinterest 48%

YouTube 48%

#ecommerceUGC

Where are we now?

On-Site Social Social On-Site

UGC Photos 3.3%

UGC Videos 1.5%

What % of the IR 500 uses:

Takeaway:

We’re still in the early stages. Significant opportunities exist for innovators.

Awesome UGC Case Studies

#ecommerceUGC

Impact on Performance: Dessy.com

ChallengeKeeping visitors engaged longer

SolutionA user-driven wedding style gallery

Results

#ecommerceUGC

Impact on Performance: Ben & Jerry’sChallengeActivate dormant customers and generate user images for national ad campaign

SolutionUser image campaign via #captureeuphoria

Results

#ecommerceUGC

Impact on Performance: Rent the Runway

Challenge:Provide users with confidence when renting previously owned dress to increase conversions Solution:Crowd-sourcing user-generated images to display on product pages

Results:

#ecommerceUGC

Impact on Performance: Urban Outfitters

Challenge:Capitalize on the 100,000+ brand endorsements from user-images being shared across socialSolution:On-site UGC gallery which links to product pages

Results:

What can you do today?

#ecommerceUGC

What can you do today?• Use an ecommerce platform with a ratings and

reviews component built in. • Incentivize UGC on social media

– Consider contests and promotions!

• Experiment with UGC call to actions in-store and in product packaging.