Does User Generated Content Help Sales?

Kaleigh Simmons
Kaleigh Simmons Director of Marketing, SparkReel

Posted on May 12th 2014

Does User Generated Content Help Sales?

Increasing_Sales Flickr e-ditora

 

Fan generated content - flashy, fun, certainly a great way to get attention. We know that it's got a direct SEO benefit, and is a cost-effective way to build your brand, but we're still left with the million dollar question - what is the impact of user generated content on sales?

Before we get to the goods, let's think about this for a second. An eConsultancy study found that two-thirds of consumers use search engines to help them with purchase decisions. What are they looking for, exactly? Well, a brand new study completed by Crowdtap and Ipsos Media CT says what they're looking for - is user generated content. Millennials report spending around 18 hours a day consuming media across all of their devices, and a staggering 30% of that is user generated.

Why does this matter?

comScore found that user generated video outperformed professionally produced video in emotional hook, communicating key message and being easy to relate to. And these sentiments are echoed by the Crowdtap and Ipsos Media findings, as they revealed that millennials trust user generated photo and video 50% more than content from traditional media sources.

But does UGC help sales?

Old_Spice_UGC

The proof is in the pudding, ladies and gents. Take one of the most successful UGC campaigns of all time from Old Spice - "The Man Your Man Could Smell Like." Note only did it send web traffic, social following and engagement through the roof, but it padded the pockets, too. To the tune of a 107% increase in sales. Not bad, eh?

Lululemon_UGC

Another great example is what Lululemon did, and continues to do with their #thesweatlife campaign. They encourage their customers to share photos of themselves working out in Lululemon gear, and then tie those photos back to their product pages. How did it end up working out? Their conversion rate doubled.

User generated content has value far beyond the warm 'n' fuzzy feeling it gives both you and your consumers. Show these results to your c-suite and you'll be well on your way to building a sales and loyalty-boosting UGC strategy of your very own.

Kaleigh Simmons

Kaleigh Simmons

Director of Marketing, SparkReel

I'm a classically trained journalist turned full-stack marketer. Naturally curious. Perpetually nosy. And love storytelling. I combined my degree in Broadcast Journalism with over four years of marketing and business operations experience and moved myself to Chicago to attend Startup Institute, where I landed my current role as the Director of Marketing for user generated content platform, SparkReel.

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