Bizrate Insights survey conducted this summer found that 91% of shoppers engage with customer-generated content (UGC) before making a purchase.

UGC comes in many forms — product reviews, star ratings, Q&As, photos, videos, social media posts — all created by your customers. User-generated content is compelling to potential buyers because it offers a genuine glimpse into real customer experiences with your product. 

This makes it a powerful tool for influencing purchase decisions and building customer trust.

The Business Case for UGC in Ecommerce

Before going all-in on UGC, it’s natural for brands and retailers to weigh the potential ROI. The big question is, how does UGC influence conversion rates?

Direct Impact on Sales

UGC can be an easy way to engage customers and drive sales. According to recent data from Statista, visitors who actively engaged with UGC in some way experienced a 102.4% increase in conversion.

Plus, our survey found that 82% of shoppers say user-generated content improves their perception of a brand. When customers see other real-life buyers vouching for your product, they’re more likely to believe in its value and make a purchase.

Cost-Effective Marketing

UGC can also be a cost-effective marketing strategy. No need to shell out the big bucks for professional-looking ad content. Instead, why not leverage the content created by your customers? Online shoppers are constantly bombarded with polished ads and marketing messages from brands on the internet. Using real, experience-driven reviews or photos from happy customers in your marketing can help you stand out from the crowd and come off as more authentic.

Customer Loyalty and Retention

Beyond conversions, UGC fosters a valuable sense of community among your customers. As Forbes points out, UGC humanizes your brand, promoting a sense of belonging among shoppers with shared interests. Recent data also shows UGC highly impacts purchasing decisions for 79% of consumers. 

When people see others showing excitement about your product, they are more likely to want to participate in your growth. Showcasing a vibrant community of engaged customers signals to potential buyers that your product is in demand and can give you a competitive advantage in crowded markets.

Types of UGC and Their Impact

There are many subsets of UGC, but our survey revealed that customers trust some more than others:

Written Reviews and Star Ratings

Based on our survey, written product reviews and star ratings are the top types of UGC customers prefer:

  • 75% of shoppers prefer detailed written reviews.
  • 63% find star ratings most helpful.

Wondering how to motivate customers to give quality reviews and product feedback? Our data shows that most customers (71%) are willing to share their experiences or reviews online. Sometimes, you just need to make it easy for them:

  • Optimize your website for UGC by prominently showcasing star ratings on product pages and search results. This allows customers to gauge a product’s quality at a glance.
  • Add interactive features like a Q&A section, comments, or a review rating system. In our survey, 44% of respondents found reviews marked helpful by customers as trustworthy, and 59% want the ability to ask other reviewers questions.
  • Include filters and sorting options for easy sorting and searching. In our survey, 37% of shoppers say they want this option in UGC.

Visual UGC: Customer Photos and Videos

Visual UGC is valuable because it allows potential buyers to see the product in real-life scenarios, boosting customer trust. Our survey found:

  • 51% of shoppers find reviews with photos and videos to be trustworthy.
  • 47% find photos to be the most helpful.
  • 42% consider videos to be the most helpful.

Encouraging customers to provide photos and videos of your product can be tricky, but here are some strategies to consider:

  • Actively prompt customers to include photos and videos in their reviews and send follow-up emails to customers as an easy way to give feedback.
  • Use visual UGC in product descriptions to showcase your product in real-world settings and make customers feel valued and recognized for providing content.
  • Engage with customers who share visual content to build loyalty, showing your appreciation for their feedback and support.

Social Media UGC

Social media is another popular forum for UGC, runner-up only to retailer websites. In our survey, 48% of shoppers reported engaging with UGC on social platforms:

Some tips to incentivize user-generated content on social media:

  • Create branded hashtags and encourage customers to use them when sharing images on their social channels.
  • Run social media contests or giveaways that require participants to submit photos or videos of themselves using your product.
  • Feature customer content on your social channels and engage with UGC on social media to make customers feel valued and encourage others to participate.

Implementing UGC: Best Practices and Challenges

  1. Encouraging Authentic UGC: Honesty is a crucial component of UGC. While incentives can entice shoppers to share their opinions, getting balanced, genuine feedback is important. Customers are slower to trust paid reviews in general — our survey found that 56% of consumers trust unpaid reviews more than paid ones. (See the next section for more tips on how to ensure UGC authenticity.)
  2. Integrating UGC Across Platforms: For maximum impact, strive to integrate UGC across all channels. Our research shows that 68% of consumers use retailer websites for UGC, so optimizing your website is essential. However, an omnichannel approach across all customer touchpoints can help ensure a cohesive and effective UGC strategy for all types of customers.
  3. Dealing with Negative Content: Negative feedback is inevitable, but it can also be an opportunity to build trust. Addressing customer issues publicly and transparently shows that you value their feedback and are committed to improving their experience. For more helpful tips, check out Smart Ways for Ecommerce Businesses to Respond to Rude Online Reviews.

The Future of UGC in Ecommerce

As emerging technologies like artificial intelligence (AI) gain more traction in ecommerce, the battle to ensure UGC authenticity may be more critical — and difficult — than ever.

Fake UGC can undermine customer trust and ultimately damage your brand’s reputation. To combat this, it’s crucial to take steps to ensure UGC authenticity:

  • Verified Purchase Badges: Clear indicators of real purchases from verified buyers can add credibility to reviews. In our survey, 35% of customers found verified purchase badges trustworthy.
  • Transparent Policies: Ensure you clearly distinguish between organic and sponsored content online to maintain customer trust.
  • Image and Video Verification: Verify the authenticity of images and videos with technology such as metadata checks and AI tools that can identify inconsistencies or signs of tampering.
  • Review Analysis: Leverage AI for good! It can help analyze patterns in review submissions to help identify suspicious activity, such as multiple reviews from the same IP address or unusually high ratings from new accounts.

Get Deeper Insights into UGC Trends

If you’re ready to take your UGC strategy to the next level, download our free Shopper Insights Brief. In it, you’ll find even more comprehensive insights on how to leverage UGC for your ecommerce business and boost your bottom line.

Capture Authentic Customer Feedback with Bizrate Insights

Don’t forget — Bizrate Insights offers comprehensive CX solutions to help you better understand your customers. We gather feedback from verified buyers to uncover valuable insights on how to grow your ecommerce business.

Book a demo with Bizrate Insights today to learn how our solutions can help you implement an effective UGC strategy.