Fostering Engagement with User Generated Content


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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.

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Fostering Engagement with User Generated Content

  1. 1. User Generated Content: The Basics
  2. 2. User-generated content is any fan What is is repurposed by brands to engagement that user-generated drive sales or marketing messages content?
  3. 3. Ratings & Reviews #ecommerceUGC
  4. 4. Photos & Videos #ecommerceUGC
  5. 5. Collaborative Filtering #ecommerceUGC
  6. 6. A Little History… It all started with comments and user reviews The founding fathers of user generated content #ecommerceUGC
  7. 7. And they still got it… #ecommerceUGC
  8. 8. We’re taking a different approach. We want to Reviews were revolutionary for make every book available—the good, the bad, andtheir time… loose. the let truth — Jeff Bezos
  9. 9. User-generated content is creeping up on all ofis And user-generated content our marketing channels. That’s where content is still evolving… trending. — Moira Gregonis, Urban Outfitters
  10. 10. Why is UGC important for retailers?
  11. 11. 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
  12. 12. The UGC Maturity Model Collect and display UGC on-site Engage users on social networks #ecommerceUGC Engage users on social networks, then pull that content back on-site
  13. 13. The UGC Maturity Model Ad Value Engagement Conversion #ecommerceUGC
  14. 14. The UGC Maturity Model Ad Value None Engagement Low Conversion High #ecommerceUGC
  15. 15. The UGC Maturity Model Ad Value None Moderate Engagement Low Moderate Conversion High None #ecommerceUGC
  16. 16. The UGC Maturity Model Ad Value None Moderate High Engagement Low Moderate High Conversion High None High #ecommerceUGC
  17. 17. Takeaways: Frame the conversation by driving engagement on-site. Pull user-generated content back to your product pages to generate conversions.
  18. 18. Why do Customers Want UGC?
  19. 19. UGC Performs 4 Key Functions #ecommerceUGC
  20. 20. ―Social proof… is driven by the assumption that surrounding people possess more knowledge about a given situation.” #ecommerceUGC #ecommerceUGC
  21. 21. Merchandising • Most products are easier to evaluate in person than online • Merchandizing with user generated images provides tactility • Increase the amount of timeon-site #ecommerceUGC
  22. 22. Trust To what extent do you trust the following forms of advertising? (Neilsen, 2013) Emails I signed up for Online video ads Ads on social networks Display ads on mobile Online banner ads 56% 48% 48% 45% 42% Recommendations from people I know 84% Online consumer opinions 68% #ecommerceUGC
  23. 23. Trust #ecommerceUGC
  24. 24. Fan Celebration #ecommerceUGC
  25. 25. Adoption of UGC in the IR500
  26. 26. Where are we now? IR 500 • • • 73% of retailers use product reviews 69% of retailers use product ratings 19% of retailers use collaborative filtering #ecommerceUGC
  27. 27. Where are we now? What % of the IR 500 uses: Facebook 85% Twitter 79% Google+ 36% Instagram 14%* Pinterest 48% YouTube 48% #ecommerceUGC
  28. 28. Where are we now? What % of the IR 500 uses: UGC Photos UGC Videos #ecommerceUGC 3.3% 1.5%
  29. 29. Takeaway: We’re still in the early stages. Significant opportunities exist for innovators.
  30. 30. Awesome UGC Case Studies
  31. 31. Impact on Performance: Challenge Keeping visitors engaged longer Solution A user-driven wedding style gallery Results #ecommerceUGC
  32. 32. Impact on Performance: Ben & Jerry’s Challenge Activate dormant customers and generate user images for national ad campaign Solution User image campaign via #captureeuphoria Results #ecommerceUGC
  33. 33. 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
  34. 34. Impact on Performance: Urban Outfitters Challenge: Capitalize on the 100,000+ brand endorsements from user-images being shared across social Solution: On-site UGC gallery which links to product pages Results: #ecommerceUGC
  35. 35. What can you do today?
  36. 36. 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. #ecommerceUGC