Fostering Engagement with User Generated Content
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description
Retailers are increasingly using content created by their most rabid fans to promote their products. This presentation takes a data-driven look at the practice of incorporating reviews, ratings, photos and other types of user-generated content in your marketing.
Transcript of Fostering Engagement with User Generated Content
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.
