Product reviews have always been important, but they’ve evolved into a new medium. Positive UGC is essential for consumer brands and drives conversion for products.
UGC has ushered in a new era of the influencer. Brands no longer need a huge celebrity endorser to gain credibility. In fact, utilizing “micro-influencers” may have a better payoff as they are able to reach the right audience at the right time.
Micro-Influencers are social media creators that have a smaller audience (typically between 10,000 and 100,000 followers). They have a distinct audience that is interested in aspects of their lifestyle. For instance, “mommy influencers,” “dog parents,” and “beauty influencers.”
Audiences are already engaged with these creators and trust the products they use. Working with them can help brands ensure that their advertising reaches the right audience at the right time with trust implied.
When products gain popularity within the micro-influencing community, it prompts more UGC. Users are motivated to weigh in on their own experience with the product and generate views based on product interest.
Influence Marketing Has Major Payoffs
As mentioned, consumers trust their peers to give honest product reviews and only promote what actually works for them. That said, there is already inherent trust for the endorser that is then attributed to the brand.
Consumers have a less skeptical eye when the person promoting the product doesn’t have a stake in the company. The offerings are perceived as more genuine and have a greater impact on the consumer.
The proof is in the numbers. Consumer brands have observed the impact that micro-influencers and UGC have on brand impact and immediate sales.
This is especially true when the creator links the product or offers an incentive to purchase. Consumers can go directly from the content to the product detail page (PDP) and make a purchase. It accelerates the buyer’s journey and impacts in-the-moment decisions.
Brand loyalty is essential for consumer brands. They now have the power to insert themselves into existing communities and generate loyalty through new channels.
Utilizing micro influencers and UGC will grant the brand access to these niche pockets of consumers who are already interested in the category or have expressed intent.
Return on Investment (ROI)
Smaller creators are a more affordable option for brands as they charge less for product promotion compared to those with a larger following.
Even if the content reaches fewer people, it reaches the right people. Brands can make a smaller investment while reaching their target audiences.
Existing in these mediums allows brands to collect additional data on consumers and in turn, produce higher-quality content that packs a greater punch.
Additional insights can be generated like social share of voice, brand sentiment, consumer demographics, etc., that would otherwise be unknown to the brand.
Brands also have more direct insight into the effectiveness of their messaging as they can see what conversions are a direct result of the micro influencer are they are working with. Strategies and investments can then be adjusted based on outcomes.