THEORETICAL OVERVIEW
Overview of E -commerce
E-commerce is simply understood as "involving the use of the Internet, the World Wide Web (Web), and mobile applications and browsers running on mobile devices to transact business." (Kenneth C Laudon, 2021) A further definition of e-commerce is "digital commercial transactions between organizations and individuals," which includes all business dealings mediated by electronic means over the Internet, the Web, and/or mobile devices Crossing organizational or individual boundaries to exchange value for goods and services is referred to as a commercial transaction " (Kenneth C Laudon,
E-commerce has experienced rapid growth, with retail e-commerce expanding at over 20% annually and projected to reach nearly $4.3 trillion by 2020 Social networks like Facebook, Pinterest, and Instagram are enhancing social e-commerce through advertising tools and buy buttons, facilitating customer purchases Additionally, local e-commerce is thriving due to increased demand for on-demand services, while B2B e-commerce continues to outpace other forms The Covid-19 pandemic, which began in early 2020, is anticipated to contribute to a gradual and lasting shift in the e-commerce landscape.
Figure 1- Retail E-Commerce sales worldwide 2014-2025
Mobile platforms, particularly smartphones and tablets, have significantly influenced technological advancements, leading to remarkable growth in mobile advertising and digital transformation Today, mobile e-commerce is a reality, while messaging apps like Facebook Messenger, WhatsApp, and Snapchat are evolving into business communication tools The rise of cloud computing complements mobile development by enabling the storage and delivery of applications and content to mobile devices Additionally, key tech trends such as the Internet of Things (IoT) and big data analytics are shaping the future of mobile technology.
The Internet and mobile platforms foster a dynamic environment where millions can create and share content, build new social connections, and enhance existing relationships via social media This includes various channels such as social networks, photo and video sharing sites, and blogging applications (Kenneth C Laudon, 2021).
These are also the main content that will be covered in the report's subsequent sections
3 websites and applications, etc… " (Kenneth C Laudon, 2021)
These are also the main content that will be covered in the report's subsequent sections.
Overview of User-generated content marketing
1.2.1 The concept of Content Marketing
Content marketing is a strategic approach focused on creating and distributing valuable content to attract and engage customers, ultimately driving profitable actions (CMI) In the realm of E-commerce, it involves developing content campaigns for brands and securing placements across various platforms This content can take many forms, including articles, infographics, case studies, interactive graphics, white papers, and press releases The primary objectives of content marketing are to boost website traffic, improve organic search rankings, and enhance brand engagement on social media.
Content marketing is primarily delivered through social media platforms like Facebook, Zalo, and Instagram, tailored to meet user and marketing needs by creating and sharing high-value content related to products and services Its main goal is to attract and retain users, ultimately converting them into customers Additionally, content marketing enhances readers' knowledge by providing valuable information across various aspects of daily life.
1 Content Marketing Institute one of the leading content marketing websites, as well as a pioneer in this : field
1.2.2 The concept of User-Generated Content Marketing
According to (George E Belch, 2015) "User-generated content (UGC) is an advertising and/or other forms of content provided by consumers or other f i l "
1 Content Marketing Institute one of the leading content marketing websites, as well as a pioneer in this : field
1.2.2 The concept of User-Generated Content Marketing
According to (George E Belch, 2015) "User-generated content (UGC) is an advertising and/or other forms of content provided by consumers or other nonprofessional sources."
User -generated content (UGC) refers to any content created and shared by consumers based on their experiences, opinions, and feedback, including online reviews, product images, and videos Today, digital platforms, particularly social networks, serve as the central hub for UGC, enabling customers to express their views and engage with brands.
1.2.3 The role of User-Generated Marketing
User -generated content (UGC) offers numerous advantages, such as being cost-effective, fostering customer engagement, and enhancing website visibility through dynamic content updates UGC, alongside blogs and the internet, has cultivated expansive online communities driven by user contributions, significantly broadening marketers' reach to potential customers through innovative media formats This shift has led to the emergence of novel marketing strategies However, empowering users with a voice also presents a risk for marketers, as it can lead to public alienation if not managed carefully.
In today's digital marketplace, customers increasingly distrust traditional brand marketing and instead turn to user-generated content (UGC) for authentic reviews and real-life experiences This shift highlights the importance of peer opinions in the purchasing process, as consumers seek genuine insights into the products and brands they consider investing in Consequently, UGC plays a crucial role in shaping purchasing decisions and building trust among potential buyers.
User -generated content (UGC) is essential for businesses today as it fosters trust between customers and brands This trust serves as a foundation for establishing sustainable and long-term relationships, ultimately benefiting both parties.
5 UGC plays important roles such as
User -generated content (UGC) is crucial for businesses today as it fosters trust between customers and brands This trust serves as the foundation for developing sustainable, long-term relationships, ultimately transforming customers into loyal advocates for the brand.
Leveraging customer experiences for marketing and promotion allows businesses to significantly reduce costs associated with traditional marketing methods.
Listening to customer feedback is essential for businesses to gain a clearer understanding of the customer experience and identify areas for improvement By actively engaging with customer opinions, companies can recognize unsatisfactory aspects and make necessary changes to enhance satisfaction and loyalty.
User -generated content (UGC) fosters brand loyalty and strengthens community by allowing customers to actively participate in a brand's growth This engagement not only enhances their affinity for the brand but also satisfies their desire to be part of something larger, ultimately creating a sense of belonging within the brand’s community.
User -generated content (UGC) fosters meaningful conversations between brands and consumers, enhancing brand interaction and cultivating an engaged community By sharing audience-generated content, businesses can strengthen their relationships with customers, ultimately driving increased brand loyalty.
Figure 2- Stackla survey on the authenticity of branded content UGC
1.2.4 Types of User-Based Content Marketing
UGC is also extremely diverse, based on the form, it can be divided into the following types:
User -generated content (UGC) reviews are a highly trusted form of feedback, allowing anyone to share their opinions across various platforms like Google, Amazon, Shopee, Lazada, and Facebook Online retailers have effectively established extensive spaces for users to post and view product reviews, enhancing consumer trust Additionally, detailed reviews of establishments such as coffee shops and resorts, including recent customer experiences, are readily available, further aiding potential visitors in making informed decisions.
Bloggers serve as valuable sources of reviews across various niches, including fashion, technology, and food They dedicate time to share their personal experiences and provide insights on products, services, or brands Many blogging platforms focus on testing new offerings and crafting detailed reviews, making them essential for consumers seeking informed opinions.
• Content on Social Networks:There is countless UGC Content on social
• Blog Posts: Bloggers are a great source of reviews, whether they're fashion or technology, or food bloggers, they take the time to write down their
8 experiences as well as give a few reviews regarding the subject product, service, or brand Many Blog sites work towards testing new products or services and writing reviews
User -generated content (UGC) on social media platforms like Facebook, TikTok, Instagram, and Tumblr has become a focal point for today's marketers This is due to the vast user base, extensive reach, and the swift dissemination of information that social networks offer.
Consumers frequently share images of their recent purchases on social media, accompanied by brief introductions, compliments, or relevant hashtags This trend spans various categories, including the newest fashion collections, cutting-edge tech gadgets on platforms like Facebook, and tweets highlighting the best local coffee shops.
UGC IN SOCIAL MEDIA AND E-COMMERCE SITES
UGC Marketing in Social media
Social media is an internet-based channel created for people to connect, share
2 UGC IN SOCIAL MEDIA AND E-COMMERCE SITES
2.1 UGC Marketing in Social media
Social media is an online platform designed for users to connect and share ideas, information, emotions, images, and videos Its high level of interactivity makes social networks one of the most effective channels for online marketing.
In today's digital landscape, social media plays a crucial role in everyday life, enabling faster and more effective information sharing compared to traditional media Additionally, it enhances customer engagement and boosts brand awareness significantly.
Figure 3- The usage of social media around the world
Facebook is a leading social networking site that enables users to connect and share with family and friends globally With features like posting, commenting, reacting, sharing photos, and live chatting, users can engage with content in various ways, including short-form videos Content shared on Facebook can be public or restricted to specific friends or family members As of now, Facebook boasts an impressive 2.94 billion users, making it the largest social media platform worldwide.
9 any user can post, comment, react, share photos and post links to news or other interesting content on the website, chat live, and watch short-form videos Shared
Facebook, with 2.94 billion users, stands as the largest social media platform globally, allowing content to be shared publicly or within select groups, including friends and family.
Figure 4- Facebook users (Source: DataReportal, 2022)
Facebook offers a variety of tools for users to generate their own user-generated content (UGC), including posts, images, videos, and stories Unique features like marketplaces and community discussion groups set Facebook apart from other platforms, enhancing user engagement and interaction.
Facebook's unique feature includes groups and a marketplace, allowing users to freely share and exchange content This direct interaction fosters trust among users, making their communications more credible compared to traditional one-way advertising from brands.
Facebook's unique features include groups and a marketplace, allowing users to freely share content and engage in exchanges This direct interaction among users fosters a sense of trust that surpasses traditional one-way advertising from brands.
Instagram is a popular application and used to share photos & videos, users can sign up for a free account to create their profile and news feed just like Facebook
On Instagram, users can create UGC by uploading an image or video, tagging,
@hashtag, and the most recently launched tool to help support UGC on the platform is Reels (Meta, 2020)
Instagram is a prime platform for discovering and sharing customer-generated content, such as images or videos, related to a brand, product, or service By utilizing hashtags or tagging the brand name directly, users can easily find and engage with products that interest them through a simple search.
Figure 7- UGC as a post on Instagram
As of 2022, TikTok ranks as the 6th largest short-form video social network in the world, boasting over 1 billion users The platform enables users to watch, create, and share engaging short videos, enhanced by a variety of video editing effects, solidifying its status as the most appealing platform for user-generated content (UGC) today.
TikTok features popular hashtag challenges and effects that encourage users to create engaging videos and join trending activities on the platform With the ability to upload videos lasting up to 10 minutes, it's common for users to encounter UGC (user-generated content) videos from fellow TikTokers as they navigate the app.
TikTok features popular hashtag challenges (HTC) and engaging effects (stickers) that encourage users to create videos and join trending activities on the platform With the ability to upload videos of up to 10 minutes, it's common for users to encounter various TikTok creators making UGC (user-generated content) videos whenever they open the app.
TikTok operates as a social network driven by algorithms that tailor content recommendations based on individual user preferences and behaviors, creating a unique "News Feed" for each person Users leverage TikTok for various purposes, including connecting with friends, discovering information, entertainment, following favorite brands, and even selling products.
Main features available on TikTok:
TikTok stands out for its robust video creation and editing capabilities, allowing users to craft unique content using a variety of effects and templates Unlike platforms like Facebook and LinkedIn, where users often share pre-existing images or videos, TikTok encourages creativity through its in-app editing tools Users can customize their videos by adjusting speed, adding sound, and utilizing their phone's camera for personalized creations.
• Hashtag – Tag a post Similar to other social networking platforms, : TikTok also allows users to use hashtags to add to posts or search for other related posts
TikTok users can enhance their interactions by tagging other users in their posts or comments, similar to features on Instagram and Facebook By using the @ symbol followed by the desired account name, users can effectively mention and engage with others, fostering a more connected community on the platform.
• Discover – Discover Where users can search for new videos (by : entering any keyword in the search bar) or HOT trends on the platform
• Send Message TikTok also allows users to interact with each other by : messaging each other but depending on the settings of each account
• Discover – Discover Where users can search for new videos (by : entering any keyword in the search bar) or HOT trends on the platform
TikTok enables users to engage with one another through messaging, though the ability to send messages is subject to individual account settings, which may limit the number of messages that can be sent.
UGC Marketing in E-commerce sites
An E-Commerce exchange is a platform, either a website or app, that connects various individuals and brands to sell their products In Vietnam, notable E-Commerce exchanges include Shopee, Lazada, and Tiki, each with unique policies and approaches to User-Generated Content (UGC) marketing According to TINT's research titled "The State of User-Generated Content 2022," it's essential to examine the 2021 consumer data related to UGC.
- 72% of consumers believe that reviews and testimonials submitted by customers are more reliable than the brand talking about their products
- 76% of consumers have purchased a product because of someone else's recommendation before (TINT, 2022)
Figure 13-The State of User-Generated Content 2022
Because of that importance, the following part of the report will go into more detail about how UGC is popular in e-commerce sites, especially in the Vietnamese market
We will analyze 2 popular e-commerce platforms in Vietnam: Shopee and Tiki
We will analyze 2 popular e-commerce platforms in Vietnam: Shopee and Tiki
User -generated content (UGC) in e-commerce primarily consists of reviews and ratings, which vary in promotion and impact across different platforms For instance, Shopee incentivizes consumers by offering 200 coins for qualified reviews that meet specific criteria: a minimum of 50 characters, one image, and one video of the product Additionally, users can earn 100 coins for reviews that include either an image or a video These coins can be utilized within the Shopee ecosystem for various activities, such as exchanging for vouchers or directly applying them to invoices, with each coin valued at 1 VND.
Negative reviews and low ratings can significantly impact a shop's visibility and customer perception Poor ratings directly affect the shop's overall score, which is prominently displayed in its operating indicators, often leading potential customers to abandon the shop without evaluating the products A single 1-star review can diminish both the shop's and its products' rankings on Shopee's search engine, making it challenging to appear in top search results Since online shoppers cannot physically assess products, reviews serve as crucial evidence influencing their purchasing decisions Consequently, an accumulation of 1-star reviews can indicate poor product quality, deterring potential buyers.
21 p g y g p as well as the product's ranking on Shopee's search engine It will be difficult for
To enhance your shop's visibility in customer searches, it's crucial to understand the impact of online reviews on purchasing decisions Since customers cannot physically examine products, they rely heavily on reviews as evidence of quality and service A high number of 1-star reviews can deter potential buyers, leading them to seek alternatives and ultimately harming your shop's sales Thus, managing and improving customer feedback is essential for maintaining a positive reputation and driving sales.
Figure 16- Example of Customer’s Reviews
Tiki employs a review and rating system akin to Shopee, but it emphasizes user sharing and recommendations over traditional product reviews With stringent quality control, Tiki stands out as one of Vietnam's top e-commerce platforms The focus is on encouraging consumers to share their experiences, as doing so yields more enticing rewards compared to simply leaving reviews, which are not prominently featured in Tiki's policies.
22 p g p g fairly strict quality control stage, it can be said is the best of the current exchanges
Tiki is enhancing its platform in Vietnam by encouraging consumers to share information more actively, as sharing leads to more enticing rewards compared to traditional reviews and ratings The emphasis is on promoting user engagement through sharing, while the specifics of the review policy remain unaddressed.
Figure 17- Interface after reviewing Tiki
Vietnam is witnessing the rise of a new Affiliate marketing model, where users effectively blend Affiliate marketing with User-Generated Content (UGC) to maximize their benefits By sharing personal experiences and recommendations about products, users link these items on popular e-commerce platforms like Shopee and Tiki, earning commissions that can reach as high as 40% (Tiki, 2022).
Both Shopee and Tiki have very specific instructions if you want to join the
23 product to their friends, relatives, or followers by linking the product on E-
24 commerce exchanges such as Shopee, and Tiki and commissions can be up to 40% (Tiki, 2022)
To join the Affiliate Marketing program of Shopee or Tiki, it's essential to follow their specific guidelines, as this collaboration offers significant advantages for both retailers and consumers.
Figure 18- Tiki Affiliate Marketing Program
E-commerce platforms are introducing initiatives to encourage consumers to discuss products and brands, such as the "Review hay nhan ngay ngan xu" program Participants can write detailed product reviews and link to the shops where they made their purchases on Shopee Blogs The article that garners the most engagement will be recognized, promoting both consumer interaction and brand visibility.
E-commerce platforms are implementing initiatives to encourage consumers to discuss products and brands, such as the "Review hay nhan ngay ngan xu" program Participants can write detailed product reviews and link to the shops where they made their purchases on Shopee Blogs The article that garners the most engagement on Shopee Blogs will be rewarded with 500,000 coins.
E-Commerce platforms aim to encourage consumers to generate abundant user-generated content (UGC) due to its significant impact on purchasing decisions and the numerous advantages it offers to shoppers.
Figure 19- Shopee Blog - “Review hay nhan ngay ngan xu”
OTHER PLATFORMS CREATE UGC MARKETING
Google Review
Users often turn to review sites to share their shopping experiences, evaluate services, and comment on tourist attractions Among these platforms, Google Review stands out as a widely used feature within Google's suite of tools.
Google Reviews are evaluations provided by users for businesses, stores, or locations listed on Google Maps These reviews are often composed by customers who have experienced a company's products or services, allowing potential customers to gauge the quality of the business Typically, Google Reviews encompass ratings, detailed feedback, and personal experiences, serving as a valuable resource for informed decision-making.
Google Reviews are valuable user-generated evaluations for businesses listed on Google Maps, offering insights from customers who have experienced their products or services These reviews help potential customers assess the quality of a business, as they often include essential details about the overall experience.
Today's consumers often rely on the opinions of others, frequently checking reviews from previous customers before making purchasing decisions This behavior indicates that users primarily reach the "Know" stage in their buying journey, influenced by psychological factors Google Reviews play a significant role in shaping customer perceptions and can greatly impact their decision-making process.
Figure 20- Example of Review on Google Review
Google reviews share a similar format to those found on e-commerce sites, featuring elements like usernames, images, and star ratings However, unlike e-commerce platforms, Google Reviews do not facilitate direct transactions; instead, they serve as a tool for customers to connect with sales websites or social media pages of stores and brands.
Shopify
Shopify is an E-Commerce platform that helps users build online sales websites using the Cloud SaaS model With this platform, you can easily create an online b i i h f ll f h d i d i h i
26 customers/users through this tool are directed to sales websites or social networking sites of objects that are stores, brands,…
Shopify is a user-friendly E-Commerce platform that enables individuals to build fully functional online stores using the Cloud SaaS model It offers essential features like product showcasing, shopping cart integration, payment processing, and product management, making it ideal for anyone looking to establish an online business Notably, Shopify allows even those without technical skills or programming knowledge to create a professional sales website quickly and efficiently.
3.2.1 Types of UGC in Shopify
There are 3 types of UGC in Shopify: Customer-generated content, employee- generated content, and creator-generated content
Customer-generated content (UGC) is a vital tool for brand building, as satisfied customers serve as the best advocates for your products This form of authentic word-of-mouth marketing transitions private conversations into public content, allowing broader visibility UGC encompasses various formats, showcasing genuine customer experiences and enhancing brand credibility.
- Customer reviews and star ratings are displayed on your product pages
- Unboxing videos filmed by customers and posted on Instagram using your branded hashtag
- Product photos taken by your customers, displayed next to reviews
27 the rest of the world can see it Customer-generated content can include:
- Customer reviews and star ratings are displayed on your product pages
- Unboxing videos filmed by customers and posted on Instagram using your branded hashtag
- Product photos taken by your customers, displayed next to reviews
- FAQs and answers powered by your customers where they can ask their individual questions and get public customer support
- The conversations from customer communities on Facebook, Reddit, and Twitter where customers can engage with and share content with others, and interact with your brand (Shopify, 2018)
Employee-generated content (EGC) is a valuable yet less common form of user-generated content (UGC) that reflects the genuine feelings of employees about their workplace When employees are happy and share their experiences publicly, it fosters trust and authenticity Business owners who prioritize employee well-being and create quality products for customers are more likely to inspire positive EGC Since EGC is not a formal part of an employee's job description or a sales tool, it enhances the credibility of this content, making it a trusted source for potential customers Examples of employee-generated content can include testimonials, social media posts, and behind-the-scenes insights.
28 if the employees feel happy about their workplace and even show it to society Make sure that an owner is a person who has a heart for treating employees and
Creating products for customers fosters reliance on user-generated content (UGC), especially since it falls outside the scope of any employee's role or sales tool Employee-generated content can encompass various forms of contributions that enhance brand engagement and authenticity.
- Photos and videos shared by employees using an employer brand hashtag, showcasing work culture at a team event to attract talent
- Employees share company content on their social profiles, such as big press mentions or company milestones
A new team member is excited to share their journey as they embark on a new role at our company, inviting their network to celebrate this milestone Alternatively, a departing employee reflects on their positive experiences, expressing gratitude for the vibrant culture we've fostered during their time here.
- Shopify employees use the #LifeatShopify branded hashtag when sharing insight into their work lives, making it easier to find and browse this content (Shopify, 2018)
To effectively generate user-generated content (UGC), brands can encourage participation through incentives such as gifts, contests, affiliate commissions, or direct payments This strategy aligns with influencer marketing, where businesses compensate creators with a dedicated following to produce and share content that promotes the brand to their audience.
Video-centric platforms such as TikTok, Instagram, and YouTube have transformed the landscape of creator-generated content, prioritizing user expertise and audience engagement Today, content creators range from casual users to professionals, all contributing to a redefined concept of user-generated content This evolution emphasizes the diverse options available for amplifying content across these platforms.
- An Instagram influencer sharing a photo of your product with an exclusive discount code
- A TikTok video about your product by a small creator, which you can then repurpose as creative for TikTok, Instagram, and Facebook ads
- Photos submitted in a contest for your Instagram followers, where they compete by creating, submitting, and sharing content with their networks
- A TikTok video about your product by a small creator, which you can then repurpose as creative for TikTok, Instagram, and Facebook ads
- Photos submitted in a contest for your Instagram followers, where they compete by creating, submitting, and sharing content with their networks
- A YouTube review of your product, whether you provided the YouTuber with a free sample or they bought it on their own (Shopify, 2018)
A popular creator-generated content strategy you’ve likely seen before is working with influencers who align with your brand to create product reviews
Selling across multiple channels can be streamlined through Shopify, allowing sellers to manage all their sales from a single location Instead of hiring separate staff for each sales channel, sellers only need one person to oversee operations Shopify automatically consolidates multi-channel sales, enabling sellers to efficiently manage and process orders, ultimately saving time and effort.
• Beautiful interface with hundreds of warehouses
The Shopify app offers free eCommerce-specific templates, along with premium themes tailored for various industries like fashion, furniture, and cosmetics, which require a fee to access Users can try a demo version before purchasing All Shopify products are crafted by professional designers and undergo thorough moderation to guarantee top-notch quality for consumers.
Cloud storage has become the standard for service platforms nationwide, with Shopify utilizing Google Cloud to securely store user data This means Shopify users can enjoy peace of mind without concerns about storage limits or additional fees for extra space.
Cloud storage has become the standard for service platforms nationwide, with Shopify utilizing Google Cloud to ensure the safety of your data One of the key benefits of Shopify is the absence of storage limits, allowing for unlimited data traffic and files without additional costs.
Shopify offers round-the-clock support through Live Chat, Phone, and Email, ensuring assistance is available 24/7 Users can access live chat directly from the admin interface, with response times typically ranging from 1 to 3 minutes, although immediate replies are also possible It is important to note that the support interface primarily operates in English, allowing consumers to utilize lookup words for effective communication.
• SEO and mobile-friendly design
Shopify is tailored for eCommerce, ensuring it is optimized for search engine optimization (SEO) A key aspect of SEO is being mobile-friendly, as a significant number of consumers shop using their smartphones Consequently, every Shopify theme prioritizes mobile optimization to enhance the shopping experience.
ANALYSIS AND ASSESSMENT OF UGC MARKETING
Advantages of UGC Marketing
4.1.1 UGC on Social media and E-commerce sites
4 ANALYSIS AND ASSESSMENT OF UGC MARKETING
4.1.1 UGC on Social media and E-commerce sites
In today's fast-paced digital landscape, consumers face an overwhelming array of choices, with approximately 4.4 million blogs and 500 hours of video content uploaded daily, alongside countless other online materials This saturation of information makes it increasingly challenging for brands to capture and retain consumer attention.
In a landscape filled with numerous choices, high-quality and genuine content is essential for businesses to earn customer trust and engagement Among the various content types, User-generated content (UGC) stands out as the most reliable, as it is created by the brand's own customers.
User -generated content (UGC) significantly broadens the pool of potential customers as individuals share their experiences with products or services on social media A study by Nielsen reveals that 92% of users find content shared by friends and family to be more impactful than brand messages, highlighting the importance of authentic recommendations in influencing consumer behavior.
• Create trust and motivate consumers to buy
Positive reviews from users, including those from acquaintances, significantly influence customer decisions when selecting a product A study by cMetric, a social listening agency in Vietnam, reveals that 93% of consumers trust user-generated content (UGC) more than brand-generated content, highlighting the importance of peer recommendations Additionally, 75% of marketers believe that incorporating UGC enhances the authenticity of brand content (Ngọc, 2021).
Consumers increasingly trust user-generated content, with 72% believing that customer reviews and testimonials are more credible than brand statements about their products.
User -generated content (UGC) significantly enhances brand credibility and prestige According to a TINT report, 70% of marketers believe that ratings and reviews are crucial for their organizations, highlighting the importance of customer feedback This trust in existing customer reviews is a key factor in influencing potential buyers.
32 customers are more reliable than the brand talking about their products (TINT,
User -generated content (UGC) significantly enhances a brand's prestige and credibility According to a TINT report, 70% of marketers believe that ratings and reviews are crucial for their organizations This statistic underscores why consumers tend to trust existing customer reviews more than product descriptions in the e-commerce landscape.
Figure 23- “Are rating and reviews important for your organization?”s
• Connecting brands and customers / Brand Awareness
Marketing and communication have evolved into dynamic two-way interactions, fostering stronger brand trust and loyalty Engaging regularly with customers not only enhances relationships but also drives revenue growth for businesses.
User -generated content (UGC) enhances product accessibility for consumers and broadens brand visibility For instance, in the campaign "Review or get a thousand cents immediately," consumers showcase their creativity by sharing experiences with friends and family This positions consumers as brand ambassadors, significantly boosting brand awareness.
• "Solving" the creative problem of Marketers
33 and relatives In this case, consumers are acting as ambassadors for the brand they
34 review So UGC helps brands a lot in increasing brand awareness (MICHAELOUDIS, 2022)
• "Solving" the creative problem of Marketers
As social networks grow, users are getting smarter and more demanding Therefore, creators need to continuously deliver more creative and interesting TVCs, images, and ads (Ngọc, 2021)
Facing these difficult problems, the marketing department has been
In 2021, TINT's UGC status report revealed that 72.2% of marketers feel they bear greater responsibilities compared to 2019, while 52% identify time constraints as a significant challenge in producing visual and social media content.
User -generated content (UGC) significantly boosts sales conversion for brands, as consumers often rely on recommendations from friends, family, and previous users when making purchasing decisions According to a TINT report, 76% of consumers have bought products based on others' suggestions, highlighting the powerful impact of UGC on consumer behavior and purchasing choices (TINT, 2022).
Brands often invest heavily in paid advertisements or collaborations with key opinion leaders (KOLs) to promote their products However, user-generated content (UGC) presents a cost-effective and highly impactful alternative for advertising This type of content, created by consumers themselves, tends to resonate more as individuals share it with friends and family To incentivize the creation of UGC, brands and e-commerce platforms frequently offer vouchers, making it a more economical option compared to hiring KOLs for promotions.
4.1.2 UGC Marketing in Other platforms
• Encourage submissions with competitions and rewards
Giveaways and contests have purposes beyond raising brand awareness They f l ff i i f ki i b d i i i i
34 y p booking a KOL to promote the product (SUNIDHI, 2021)
4.1.2 UGC Marketing in Other platforms
• Encourage submissions with competitions and rewards
Giveaways and contests have purposes beyond raising brand awareness They frequently offer incentives for taking part in a brand's UGC initiatives
Hosting a simple photo contest encourages participants to share their best images based on a specific theme, which can help you crowdsource engaging content for your social media calendar while also recognizing and celebrating your most dedicated audience members.
In the aforementioned illustration, Letterfolk utilizes the hashtag
Letterfolk's Design of the Month competition encourages users to share their creative projects on Instagram using the company's tile mat By participating in this contest, your audience can boost their social media visibility while generating valuable user-generated content (UGC) for your brand.
• In post-purchase marketing touchpoints, request UGC
When a new client places an order and has gained enough experience with your products, it's the ideal moment to request user-generated content (UGC) Engaging with customers at this stage can enhance brand visibility and credibility.
Limitations of UGC Marketing
4.2.1 UGC Marketing on Social media and E-commerce sites
A significant challenge of user-generated content (UGC) is the presence of unknown and unreliable sources, leading to skepticism among users who may hesitate to trust individuals lacking authoritative backgrounds Additionally, the proliferation of various content contributors raises concerns about the potential misuse of aliases and fake accounts, further undermining the credibility of UGC Consequently, many users may be less inclined to rely on user reviews and other forms of UGC, highlighting the need for greater trust and authenticity in this type of content.
• Negative content is inevitable or fake
User -generated content (UGC) can effectively address content needs, but it also poses risks by potentially introducing damaging material Poorly crafted blog posts, negative comments, and unfavorable product reviews can significantly harm a brand's reputation Therefore, it is essential to exercise caution when depending on consumer-generated media to maintain an online presence.
This downside of consumer-generated marketing is connected to the previous one The thing is that getting negative content is inevitable, you will need someone i i i fi d i ll b f bli hi k
37 on consumer-generated media to carry an online presence
One significant drawback of consumer-generated marketing is the inevitability of negative content, necessitating careful supervision Monitoring all user-generated content (UGC) before publication requires both time and financial resources Skipping moderation to save costs can lead to serious consequences, including the risk of falling victim to a Black Hat SEO attack, which can harm the brand's reputation and online presence.
By the time we notice it, the damage might have already been done (Brid, 2021)
4.2.2 UGC Marketing in Other platforms
Shopify also has the necessary functions for businesses large and small, but there will also be businesses that require features that Shopify does not have to serve
They only provide basic features without advanced so it will be expensive for customers to buy Add - Ons but that cost can help your business increase high revenue
Shopify cart has reduced the cost, but Shopify still keeps the fee from 0.5% - 0.15% for the service package that you have chosen to use and pay
In recent years, Shopify's support service has decreased significantly, partly because consumers use the Shopify application a lot, so when customers need support, they have to wait 1-3 minutes
• Shopify's UGC is now for active customers
Customers actively searching for new product information can engage with user-generated marketing content, but this approach has not significantly expanded product visibility to consumers.
Customers who actively look for new product information are able to access user-generated marketing content, which highlights the limitations in reaching a broader audience with product offerings.
Case Study
User -generated content (UGC) has emerged as a powerful marketing tool, enabling brands like Apple, Coca-Cola, and Starbucks to harness the creative potential of their audience By leveraging UGC, these companies effectively communicate and promote their brand, amplifying their reach and engagement.
In 2017, Netflix launched a successful user-generated content (UGC) campaign to promote the film inspired by the popular series "Stranger Things." To generate buzz for upcoming releases, Netflix often employs hashtags on social media, encouraging fans to incorporate them into their posts For the film, they utilized the hashtag #StrangerThings2 to create excitement and signal the series' return.
The release of #StrangerThings2 captured the attention of devoted fans, leading to a surge in the hashtag's popularity and encouraging newcomers to explore the film As a result, users started sharing images of their unusual daily experiences on social media, using the hashtag #StrangerThings2.
Apple believes that authentic images reflecting customer affection for the brand are invaluable Acknowledging the challenge of capturing low-light photos with its iPhone camera, Apple launched the #ShotOnIphone campaign This initiative has significantly enhanced customer engagement by showcasing stunning images taken with the iPhone, demonstrating the device's capabilities and fostering a deeper connection with users.
Apple has made significant efforts to restore its reputation and brand loyalty through the #ShotOnIphone campaign, which invites both amateur and professional users to share stunning low-light images taken with their iPhones By utilizing the hashtag #ShotOnIphone on platforms like YouTube, Apple showcases these beautiful photographs, effectively leveraging user-generated content (UGC) to regain customer trust and increase brand visibility on social media This innovative strategy not only minimizes marketing costs but also makes customers feel valued by featuring their images in global advertising campaigns.
39 and professional iPhone users to take and post low-light images online using their devices Apple used the hashtag #ShotOnIphone to publish the gorgeous low-light
Apple's innovative user-generated content (UGC) strategy has successfully regained customer trust and boosted brand visibility on social media, significantly reducing marketing costs By featuring customer images in global advertising campaigns, Apple not only makes its customers feel valued but also strengthens community ties, facilitating a swift restoration of its reputation among consumers.
Limitations of UGC Marketing
UGC Marketing on Social media and E-commerce sites
We need to use UGC as optimally as possible to get the best effect
5.1 UGC Marketing on Social media and E-commerce sites
We need to use UGC as optimally as possible to get the best effect
• Do not use UGC that does not match the brand image
The creativity of user-generated content is undisputed In addition to UGCs created voluntarily, UGC campaigns will help businesses encourage customers to create more new and unique UGCs
A successful UGC campaign must align with the brand's identity and narrative; any deviation from the brand's core values and vision can lead to a disconnect with customers, resulting in reduced participation in the campaign.
Therefore, businesses need to think about what makes customers love and buy products so that they can develop a campaign that is in tune with consumer preferences and beliefs
• Don't let the interaction with your customers fade away
Customer engagement helps drive user-generated content, and those UGCs will continue to drive brand engagement with customers; from there, creating a rotating content-interaction loop
The business's mission is to encourage this loop to continuously operate through frequent interactions with the content that customers post
Businesses can monitor brand-related hashtags frequently used by users in their posts Engaging with impressive content by responding, liking, or sharing can foster creativity and enhance customer interaction.
Sincere feedback from businesses will help customers feel heard and cared about, thereby helping to strengthen the relationship between customers and the brand
E-Commerce Exchanges can verify the IP address when they find that the Shop or an individual is cheating in self-assessment to increase its reputation and attract h d i h h h h ld
E-Commerce Exchanges can verify the IP address when they find that the Shop or an individual is cheating in self-assessment to increase its reputation and attract customers When detecting these cases, the E-Commerce Exchange should withdraw the reward for reviews and ratings, if it is a shop, it should delete all fake reviews and ratings, and penalize that shop
• Check the quality of reviews and ratings
E-Commerce Exchanges can set up a team to check the quality of reviews and ratings to enhance the value of UGCs Besides, E-Commerce exchange can also work with shops to filter bad reviews and ratings together (use vulgar words, lack of culture, Unauthorized advertising, Review content unrelated to products, services need comment) by the shop will report the review and rating not quality to exchange and E-Commerce will have certain incentives for the shop.
UGC Marketing in Other platforms
Shopify, as a global platform utilized by users worldwide, faces a significant influx of support requests, resulting in information congestion and delays in customer assistance To address this issue, increasing staff is essential to ensure timely support for customers.
• Design more different apps or platforms to better suit the needs of businesses and consumers
• Adding some features of UGC such as allowing customers to know each other's emails to increase credibility, and allowing customers to upload videos for review on their website
• Shopify should launch an application that can interact with passive customers to increase revenue for the business.
It can be seen that over time, factors such as education, economy, science, and information technology have greatly influenced commercial activities, turning i E C i i d d b i i di bl f
42 customers to increase revenue for the business.
Over the years, education, economy, science, and information technology have significantly transformed traditional commerce into E-Commerce, making it an essential aspect of modern life For E-Commerce to achieve global success, it necessitates robust marketing strategies to better understand customer needs and effectively promote products A leading marketing tool in this digital age is user-generated content marketing, which has proven to be highly effective and popular.
User -generated content is a cost-effective marketing strategy that is nine times more effective than traditional methods, as it is created by customers rather than the business itself This type of content fosters a stronger connection between customers and businesses, enhancing trust However, companies must carefully consider its implementation, and platforms should establish tools or policies to manage and support user-generated content, ensuring a trustworthy e-commerce environment.
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TikTok has introduced TikTok Academy, a new educational platform designed to assist marketers on its platform This initiative offers free courses that teach the best practices for marketing on TikTok, along with valuable research data and insights The goal of TikTok Academy is to empower marketers to master the platform, providing not only usage guidelines but also essential information for effective communication and creativity Similar to Facebook's Blueprint courses, TikTok Academy aims to equip marketing professionals with important lessons to optimize their campaigns To participate, users must register with a verified email, gaining access to free courses and receiving tokens and badges upon completion, which can be showcased on professional networks like LinkedIn to enhance their marketing credentials.
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