User generated content (UGC): a new indicator of retail performance?
The advent of social networks has made brands aware of the power of customer-generated content and the importance of building communities (which are inevitably more loyal).
Some companies are completely revising their marketing investment strategy, like Estee Lauder, which has dedicated 75% of its marketing budget to influencers in 2019. The reason for this change of strategy, the figures that shows that 70% of consumers active on social networks say they consult UGC at least 2 to 3 times a week, but also trust 7 times more photos posted on social networks than traditional advertising. UGC has become a real communication channel between the brand and its customers. Giving your opinion allows you to be valued when this content is reposted by the brand and therefore promote customer engagement.
Retail is becoming more and more a real media! Retail is no longer only evaluated by its business performance but also by its capacity to produce UGC. Thought as a media, it will have to propose renewed experience devices to maintain a high level of interest and surprise. The content generated will boost traffic at the point of sale and promote brand awareness.