What is UGC and Why Does Your Local Business Need It?

And even if you have never heard the term “user-generated content” until recently, it’s likely that you’ve already seen it and interacted with it. That’s because it’s becoming increasingly popular for use in advertising on social media platforms.

So, does that mean your small business should be adopting it too? Yes! And we’ll tell you exactly what UGC is, why it’s impactful, and why your business should be using it right in this blog post.

[Related: Social Media Management Tips for Small Businesses]

What is UGC?

User-generated content is any form of content (images, videos, text, or audio) that has been posted online by users. This is generally attributed to social media, but can also include online review websites, forums, etc. So, instead of just your brand promoting itself, you now have consumers or employees creating content on your organization’s behalf, talking about the product, services, or even company culture.

Some examples would be a customer posting a picture of their coffee on their Instagram Story and tagging the local café where they purchased it. A customer creating a YouTube video unboxing an order from their favorite local boutique. Or even an employee creating a “day-in-the-life” video of their job and then sharing it on the business’s TikTok account. UGC can be as simple as a tag or as involved as an edited video.

The difference between UGC and branded content lies in the creator and the brand’s involvement. UGC is created by a user (often a customer), so it usually appears more authentic and trustworthy. And branded content is created by the brand itself with specific guidelines and direction, allowing it to adhere more closely to brand messaging.

[Related: Word of Mouth Marketing for Small Businesses]

Why does UGC matter for local businesses? 

Why do local or small businesses care about users creating content about their brand? Well, a few reasons:

• Authenticity & trust – 84% of consumers say they trust peer recommendations above all other sources of advertising. UGC uses the voices of real people. And real people build a brand’s credibility.
• Social proof – When you put your customers and employees at the front of your brand, it humanizes your marketing and sales. The presence of UGC greatly influences 79% of people's buying decisions.
• Community engagement – Community is important for local businesses, especially. UGC fosters a sense of belonging and loyalty for customers, and studies show that engagement increases by 28% when consumers can view a mixture of user-generated product videos and official brand-authored content.
• It’s cost-effective – Running a business is expensive, and sometimes ads might feel like a waste of money. UGC alleviates some of that pressure because not only is it essentially free content that promotes your brand, but UGC-based ads get 4x higher click-through rates and a 50% drop in cost-per-click than average.

[Related: Does Your Local Business Need to Be on Facebook?]

Types of UGC that work best locally

While UGC is an effective marketing tactic and the use of it is growing (especially among larger brands), you might be surprised to find that as few as 16% of brands have a strategy regarding user-generated content. Adopting this strategy sooner rather than later would put your business ahead of the competition.

But before you start developing a plan, let’s look at which types of UGC tend to perform best for local businesses like yours—and why they matter:

• Online reviews (Google, Yelp, Facebook) – Yep, reviews are written by real people without direction from your brand, so they count as UGC. Online reviews, especially on the platforms mentioned, are often the first impression customers get of your business. Positive reviews on these platforms both boost your credibility and improve your local SEO.
• Social media posts & tags – Probably the most common form of UGC. When customers tag your business in their posts and stories, they’re essentially advertising you for free to their followers, most of whom are probably also local to you. Then, when you repost that tagged content, you help build a sense of community and encourage others to share their experiences with your business too.
• Customer photos & videos – Authentic visuals from real customers resonate more than polished ones from your brand. Whether it’s a quick shot of a meal, a video of a service in action, or a selfie taken in your store, these visuals provide social proof and help potential customers imagine themselves enjoying your offerings. 
• Testimonials & shoutouts - Written and/or video testimonials shared on your website or social channels can be very persuasive to potential customers. Additionally, local shoutouts (especially from other local businesses in your area) can amplify your reach and reinforce your reputation.
• Local influencers & micro-creators – Partnering with local influencers and micro-creators (those with smaller, but still highly engaged followings) is often a good idea for small businesses. Their recommendations carry more weight because they’re seen as authentic and relatable. Plus, their audience is most likely concentrated to your local area, making their recommendations highly relevant.

[Related: 5 Types of Digital Marketing That Get Results For Small Businesses]

How to encourage UGC

Sometimes UGC comes naturally, with customers happily sharing their experiences on their social channels on their own. But if you want to bulk up your UGC strategy and make it work even harder for you, you can encourage it in the following ways:

• Ask for reviews after a purchase or service
• Create branded hashtags
• Run contests or giveaways
• Feature customer content on your website or social media
• Engage with and thank contributors

The more you interact with your customers, the more willing they’ll be to support you with their own content.

[Related: Is Your Online Reputation Costing You Customers?]

Hibu’s integrated digital marketing helps your UGC work harder

A UGC strategy is most effective when used across multiple different digital marketing channels, like social, review management, and paid advertising. But if those channels are spread across multiple vendors, it can be hard to coordinate them to put together a well-thought-out and optimized strategy. Not to mention when you add in all your other daily duties of just keeping your business up and running.

That’s where Hibu comes in. When you partner with us, you get fully integrated digital marketing that includes social marketing, website design, online reviews and reputation, local SEO, and more. So, while you’re busy running a business that people want to post about and share online, we’ll make all that user-generated content work for you.

Want to learn more about how Hibu can take your local business to the next level? Call us at 877-237-6120 or complete our Get Started form for a free, no-obligation consultation today!