User-Generated Content: Pros and Cons

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As Deming said that “Profit of business comes from loyalty customers, customers that praise about your product and service, and that introduce friends and influence their behavior.” Customers become so powerful with information, However, living in a dynamic environment, consumers are more doubting than ever and do not stand firm the way they make purchasing behavior. Therefore, Customer relationship management has become a useful tool to build long-term customers’ loyalty. The consumer’s voice is now much louder and persuasive; there are 80% of customers are willing to believe reviews and post-purchase experiences. It can say that most customers are buying a product through having a trial of a product or based on other customers’ recommendations (92% of customers read recommendations before buying online).

The User-Generated Content has become an intangible asset of companies. Here are some data can back up this opinion. Customer-generated contents are the best communication tools that customers are more likely to  make a purchase decision when the reviews and rating are relatively high. Therefore, it is important for marketers to use the intangible asset (User-generated content) to achieve the tangible results (high market share).

However, the user-generated contents still have some weakness that marketers need to overcome. Firstly, as the UGC becomes popular, the marketers may take some actions to influence customers review. For instance, business will give customers a  voucher or discount to encourage customers to leave positive reviews to influence the potential buyers and increase sales volume. Therefore, the quality of content might be uncertain at the most of times. On the other hand, businesses aim to gain market share from competitors; marketers may spend money to hire people to leave the unfavorable reviews under the competitor’s official websites. Those contents are highly unreliable and untruthful due to the source is unknown. Here is a strategic solution to help companies to reduce fake reviews. They can encourage customers take photos or videos of their products when leaving a recommendation. Or send an invitation letter to evaluate the products and service to the client who within the customer lists.

The term “Customer Relationship Management” which refers to maintain a long- term customers loyalty through collecting data about customers purchase behaviours and customers lifetime value. The positive word of mouth will leads to increase in company revenue.Therefore, Customer relationship management is a key when people are doing marketing. Satisfying customer needs will further improve customer experience, increased revenues, and reduce costs.

Moreover, here is an application called Reputation management which can efficiently solve negative User-generated contents, then re-build reputation through new company image and high quality of products.

If your run a business, what strategies are you going to take to achieve higher quality customers’ contents?

Links:

https://conversionxl.com/user-generated-reviews/

http://blog.gmrwebteam.com/how-online-reviews-influence-your-customers/

https://econsultancy.com/blog/9366-ecommerce-consumer-reviews-why-you-need-them-and-how-to-use-them

 

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2 thoughts on “User-Generated Content: Pros and Cons

  1. As a customer, I deeply rely on customers evaluation before I decided to purchase something which is expensive or important for me. The customers’ word of mouth influences my purchasing behaviors in many ways. Therefore, understanding WOM in this digital age is very crucial for all marketers. It happens all the time. Good customers review tells friends, However, negative comments tell the word. Since people communicate with each other in many ways such as face to face, via phone calls and writing letters or exchanging ideas via email, blogs and so on. User-generated contents always present a powerful answer to modern marketing challenges. It seems reliable for the information receivers. As marketers, they should increase their ability to manage customers comments in some way in order to achieve the higher profit.

    Liked by 1 person

    1. Thanks for sharing your opinion with me. The reason I chose this topic to discuss in my blog is that customers trust user-generated content more than all others of media today. Therefore, for marketers, there’s never been a better time to start using user-generated content to engage with customers and build a long-term relationship with them. Furthermore, according to Bazaar Voice, 64% of millennials and 53% of baby boomers want more options to share their opinions about brands. There is a term called brand-owned, each brand promoted its campaign over its website and social profiles to gain traction. Each brand rewarded customers for presenting its products or services in a positive light also can help companies to run their one UGC campaigns.

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