55+ stats about the value of UGC for ecommerce

Shoppers rarely buy anything nowadays before making a quick scroll on social media to watch a product video on YouTube or browse photos on Instagram to make sure they’ll be getting their money’s worth.

Here’s a roundup of the most important stats that show why user-generated content on socal media is important for ecommerce.

User-generated content is everywhere

The demand for user-generated content started getting traction in 2005 when social media platforms made sharing consumer-made photos and videos easy and convenient.

UGC is so popular because it’s trustworthy

  • 92% of consumers worldwide say they trust word-of-mouth more than any kind of advertising.
  • According to a report by Forrester, 70% of consumers consider product and brand recommendations from their social circles trustworthy and 46% trust online reviews posted by other customers. In comparison, only 10% trust banner ads on websites.
  • 70% of consumers place reviews by other customers above professionally written marketing content.
  • Customer-made reviews about a product are trusted 12x more than promotional marketing content.
  • When looking for information about a product, 51% of US consumers trust user-generated content more than other information on a company website.
  • It is estimated that influencers represent one-fifth of the consumer population and influence purchases of 74% of the population.
  • Millennial consumers trust information from user-generated content 50% more than information from mainstream media sources.
  • 71% of consumers say that user-generated product reviews make them feel more comfortable buying a product.

UGC works in convincing shoppers to buy

UGC is a content magnet for Millennials

  • 84% of Millennials say that user-generated content on a company website has some influence on their purchases. The same thing is valid for 70% of Baby Boomers.
  • 86% of Millennials say that UGC is a good indicator of a brand quality.
  • After researching purchases online, 52% of Millennials are more likely to buy online than in physical stores (48%).
  • 51% of Millennials say that consumer-made reviews on company sites have a greater influence on what they buy than recommendations from friends and family.
  • Millennials are 3x more likely than Baby Boomers to search product recommendations and what to buy on social media.
  • 64% of Millennials feel that companies should offer more ways for consumers to share their feedback on products and brands online.
  • 87% of Millennials appreciate the authenticity of UGC and prefer when companies don’t edit reviews for grammar and spelling.
  • 65% of social media users ages 18–24 take into consideration information about products on social platforms before buying.
  • Millennials (age 25 and above) and Gen X consumers contribute to 70% of all user-generated content online.
  • 71% of Millennials engage with social media and user-generated content daily.
  • Millennials find user-generated content 35% more memorable than content from mainstream sources.
  • Millennials report that user-generated content is 20% more influential in their choice of purchases than other media.

UGC is the most effective in a visual form

How UGC affects purchases

  • 48% of consumers say that user-generated content is a great way to discover new products, brands, and retailers.
  • 41% of shoppers need only 1 to 4 user-generated product reviews to be influenced to buy.
  • 69% of consumers trust user-generated reviews about clothing, household goods, and personal care products. 68% trust reviews about computers and electronics, while 64% trust reviews for children products, while over 50% trust reviews on healthcare products, children products, and food.
  • More than 59% of millennial shoppers reach out for user-generated content before buying major consumer electronics, 53% search for it before buying major appliances, 46% before buying mobile phones.
  • Demand for user-generated content in the live gaming category grows 122% year over year.
  • The most influential user-generated product reviews feature customer personal stories (80%) and product pro’s and con’s (71%).
  • 59% of shoppers use smartphones at home to view user-generated product reviews and 54% use laptops.
  • Sites featuring user-generated content see 20% increase in repeat visits and up to 90% increase in the time spent on the site.

Why Goodvidio is a great solution for UGC

Goodvidio solves these problems for marketers. Goodvidio visual commerce platform automates the work of discovering, curating, publishing and optimizing user-generated video content for e-commerce.

With just a few clicks, e-commerce marketers can get a selection of the best user-generated product review videos from sites like YouTube, ranked based on retailer’s preferences and ready for publishing on the product pages. When UGC videos are published on product pages, Goodvidio runs A/B tests and e-commerce analytics to determine which videos get the best results in terms of engagement and conversion and optimizes video galleries for the best performance.

All problems related to getting UGC videos to your online store are solved! Try Goodvidio right away for free at https://signup.goodvid.io/.

Originally published on Goodvidio Blog.

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