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A beginner’s guide to building brand loyalty with user-generated content

Wednesday, May 22, 2019

In today’s competitive world, it’s becoming harder and harder for retailers to attract and hold on to customers.

Consumers are empowered like never before, and shoppers will look at more than just price when making a purchase decision. There are many components that a business can focus on to stand out from the competition.

Delivering a great customer experience, both offline and online, is one of them. Indeed, brands offering ‘shopping experiences’ to their customers are more likely to build loyalty in the long run.

So why is customer loyalty so important, and what can a business do to get closer to its customers?

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Strong brand loyalty is more important than ever

The definition of brand loyalty is the emotionally-charged decision of a consumer to purchase from a particular brand again and again. The consumer has the perception that the particular brand has the qualities that meets their needs and expectations, and identifies with the consumer on a personal level.

Brand loyalty helps build strong customer relationships, which serves as a great tool to stand out from the competition, and acquire new customers in the long run.

Did you know that acquiring a new customer costs 7 times more than maintaining an existing one?

Investing in your existing customers will pay off, and it’s only a matter of time until you see positive results. Today, satisfied and loyal customers contribute 2.6 times as much revenue as other customers, and 14 times as much revenue as dissatisfied customers.

There are different ways brand loyalty can be achieved, but using user-generated content to tell your brand story is one of the best ways to boost loyalty, and improve customer satisfaction.

User-generated content is essential to drive brand loyalty and customer satisfaction

User-generated content (UGC) is defined as any type of content that has been created and put out there by customers. It can refer to pictures, videos, testimonials, tweets, blog posts, reviews, and much more

Modern consumers have lost trust in traditional advertising. In fact, 84% of consumers do not trust adverts anymore, and 87% of consumers admitted finding ads more trustworthy with Trustpilot. Recent research also shows that UGC is considered to be 50% more trustworthy than traditional marketing.

User-generated content helps consumers make decisions, buy a product, or subscribe to a service they will most-likely enjoy based on the wisdom of the crowd.

Customer advocates, or people posting about your business, are more than just brand ambassadors. They are loyal customers. They are the lifeblood of your business. Unlike influencers, customers advocates are your everyday customers, who are much more relatable, and much more likely to bring you more, loyal, customers.

When 76% of individuals admit that they’re more likely to trust content shared by “normal” people than content shared by brands, it becomes clear that refusing to adopt a UGC strategy can lead to a risk of stagnation. In fact, UGC has been shown to increase marketing effectiveness by as much as 54%.

No wonder brands like Daniel Wellington, Lululemon, MZ Wallace, Sweaty Betty, Monday Swimwear, and many more, have all adopted UGC - and rely on it on a daily basis.

It can be tricky to figure out which type of user-generated content is best for your business. One of the best types of UGC out there is online reviews. While many types of user-generated content may be generational, or not accessible to everyone, reviews have become visible throughout the entire marketing funnel, from organic social posts, to display campaigns, all the way down to the product page itself.

Because of this extreme versatility, online reviews are one of the best marketing tools out there, and essential to any company’s success.

How your review strategy can work together with UGC for a better customer experience

Today, 92% of consumers read reviews, and 80% of shoppers trust reviews as much as personal recommendations.

Online reviews have become an essential tool for eCommerce businesses looking to beat the competition and increase customer confidence at different stages of the buying journey.

Third-party review platforms are more recognised and trusted by consumers because reviews can not be edited or deleted by businesses, making every single review on there completely authentic, credible, and therefore, more reliable.

Reviews also give you a direct line to your customers, and listening to them empowers you to learn what they want, deliver it to them, and ultimately, increase customer loyalty and improve customer experience.

Understanding your consumers’ needs and wants is essential to ensure your company is future-proof, and collecting consumer insights through online reviews is a great way to identify areas of development, and work towards creating a better shopping experience for your future, existing, and loyal customers.

There’s no doubt user-generated content, brand loyalty, and customer experience are all linked. Our integration with LoyaltyLion makes it simple to take advantage of this link, and accelerate your marketing efforts.

Find out how a review strategy can help you build brand loyalty, download a free copy of our Complete Guide to Reviews below.

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