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Consumer Generated Marketing: Benefits, Examples, and Best Practices

Content Outline

  1. Introduction
    • A. Definition of Consumer Generated Marketing
    • B. Importance of Consumer Generated Marketing
  2. Benefits of Consumer Generated Marketing
    • A. Increased Authenticity
    • B. Reduced Costs
    • C. Improved Engagement
    • D. Greater Reach
  3. Examples of Successful Consumer Generated Marketing
    • A. Coca-Cola’s ‘Share a Coke’ Campaign
    • B. Lay’s ‘Do Us A Flavor’ Campaign
    • C. Airbnb’s ‘Live There’ Campaign
  4. Best Practices for Implementing Consumer Generated Marketing
    • A. Clearly Define Your Objectives
    • B. Choose the Right Platform
    • C. Encourage Participation
    • D. Reward Your Participants
  5. Conclusion

Introduction

Consumer generated marketing (CGM) is a marketing strategy that involves consumers in the promotion and creation of a brand’s content. With the rise of social media, CGM has become increasingly popular, allowing consumers to share their experiences and opinions about a brand with a wider audience.

  • CGM has been shown to be more effective than traditional advertising in reaching younger audiences, with 86% of millennials saying that user-generated content is a good indicator of a brand or product’s quality.
  • One of the benefits of CGM is that it can be more cost-effective than traditional advertising, with brands able to leverage user-generated content instead of producing their own.
  • However, there are also some tradeoffs to consider. CGM can be difficult to control, and negative reviews or comments can quickly spread through social media and damage a brand’s reputation. Additionally, some consumers may not trust CGM as much as traditional advertising, as they may see it as biased or not representative of the broader population.

Despite these tradeoffs, CGM can be a powerful tool for brands looking to reach younger audiences and build a community around their products. By leveraging the power of social media, brands can tap into the creativity and enthusiasm of their customers, while also creating a more authentic and engaging brand image.

Introduction – A. Definition of Consumer Generated Marketing

Consumer Generated Marketing (CGM) refers to the promotion and advertisement of a product or service by its own consumers. This is a relatively new form of marketing that has emerged with the advent of social media and the internet. In CGM, consumers create and share content related to a product or service on various online platforms, such as social media, blogs, and review sites. This user-generated content (UGC) can take many forms, including reviews, testimonials, videos, images, and blog posts.

Benefits of Consumer Generated Marketing

  • Authenticity: Consumers trust UGC more than traditional marketing messages because it is created by their peers and seen as more authentic and trustworthy.
  • Cost-effective: CGM is often much less expensive than traditional advertising and can be a great way for small businesses to get their name out there.
  • Engagement: CGM encourages engagement and interaction between consumers and brands, which can lead to increased loyalty and repeat business.

Tradeoffs of Consumer Generated Marketing

  • Lack of control: Brands have little control over the content that consumers create, which can lead to negative publicity if the content is not favorable.
  • Time-consuming: CGM requires time and effort to monitor and respond to user-generated content, which can be a challenge for small businesses with limited resources.

Despite its challenges, CGM has become an increasingly important part of a brand’s marketing strategy. According to a study by Bazaarvoice, 64% of millennials and 53% of baby boomers want more options to share their opinions about brands online. This highlights the importance of CGM as a way for brands to engage with their consumers and build brand loyalty.

Sources: Bazaarvoice

Introduction – B. Importance of Consumer Generated Marketing

Consumer generated marketing (CGM) is an important and evolving aspect of modern marketing. With the rise of social media and online platforms, consumers have more power than ever to shape a brand’s message. CGM refers to any type of content created by consumers that promotes or relates to a brand or product. This content can include reviews, social media posts, videos, and more.

The importance of CGM lies in its ability to build trust and credibility with consumers. According to a study by Bazaarvoice, 84% of consumers trust online reviews as much as personal recommendations. This means that CGM can have a significant impact on a brand’s reputation and sales.

One of the key benefits of CGM is that it provides brands with authentic content that resonates with consumers. Unlike traditional advertising, CGM is created by real people who have experienced a brand or product. This makes it more relatable and trustworthy to potential customers.

Furthermore, CGM can also help brands to reach new audiences and increase their visibility online. According to a survey by Crowdtap, 64% of millennials and 53% of baby boomers said that they are more likely to make a purchase after seeing user-generated content.

In conclusion, CGM is a powerful tool that can help brands to build trust, credibility, and increase their visibility online. As consumers continue to have more influence over brand messaging, it is important for marketers to embrace CGM as part of their overall strategy.

Consumer Generated Marketing

Benefits of Consumer Generated Marketing

Consumer generated marketing (CGM) refers to the promotion of a product or service through user-generated content (UGC) created and shared by consumers. UGC can take many forms, including reviews, blog posts, social media posts, videos, and photos. CGM has become increasingly popular in recent years, and for good reason. Here are some of the benefits of CGM:

  • Increase in brand awareness: CGM can help increase brand awareness by creating a buzz around a product or service. When consumers share their experiences with a product or service, it can reach a wider audience than traditional advertising methods.
  • Cost-effective: CGM can be a cost-effective way to promote a product or service. Instead of spending money on traditional advertising methods, companies can rely on their customers to do the promotion for them.
  • Builds trust: UGC can help build trust between a company and its customers. When consumers share their experiences with a product or service, it can create a sense of authenticity and transparency.
  • Creates engagement: CGM can create engagement between a company and its customers. When consumers are encouraged to share their experiences with a product or service, it can create a sense of community and involvement.
  • Improves SEO: CGM can improve a company’s search engine optimization (SEO) by providing fresh and relevant content for search engines to crawl. When consumers share UGC, it creates new content for search engines to index.

According to a study conducted by Nielsen, 92% of consumers trust recommendations from friends and family over all forms of advertising. This shows the power of CGM and how it can be a valuable tool for companies to promote their products or services.

Overall, CGM can be a powerful marketing tool for companies looking to increase brand awareness, build trust with customers, and create engagement. By tapping into the power of UGC, companies can create a more authentic and transparent relationship with their customers.

Sources: Nielsen

Benefits of Consumer Generated Marketing – A. Increased Authenticity

Consumer Generated Marketing (CGM) is a marketing strategy that involves consumers creating and sharing their own content about a brand or product. This type of marketing is gaining popularity as it allows brands to tap into the creativity and loyalty of their customers to create authentic and engaging content.

Increased Authenticity

One of the key benefits of CGM is the increased authenticity it provides. Traditional marketing messages often come across as insincere or contrived, as they are created by the brand and are often perceived as biased. In contrast, CGM is created by real customers who have had genuine experiences with the product or brand.

According to a study by Bazaarvoice, 64% of consumers actively seek out user-generated content before making a purchase. This shows that consumers value the opinions and experiences of their peers over traditional marketing messages.

When consumers create content about a brand, they are more likely to be honest and authentic in their messaging. This can lead to a stronger connection with the audience and a more positive brand image overall. In fact, a study by Adweek found that CGM campaigns can result in a 28% higher engagement rate than traditional marketing campaigns.

Conclusion

Overall, the increased authenticity provided by CGM can be a valuable asset to any marketing strategy. By tapping into the creativity and experiences of their customers, brands can create content that resonates with their audience and builds a stronger connection with their customer base.

Benefits of Consumer Generated Marketing – B. Reduced Costs

One of the major benefits of consumer generated marketing is that it can significantly reduce costs for businesses. Traditionally, companies have had to spend a lot of money on market research, advertising, and promotions to reach their target audience. However, with consumer generated marketing, the consumers themselves are creating content that promotes the brand, which can be shared on social media and other online platforms.

How Does Consumer Generated Marketing Reduce Costs?

  • No need for professional content creation: When consumers create their own content, businesses don’t need to spend money on professional video or photo shoots, copywriting, and other creative services. This can save companies thousands of dollars on marketing and advertising expenses.
  • Increased organic reach: Consumer generated content is often shared on social media and other online platforms, which can increase organic reach and reduce the need for paid advertising. According to a study by Bazaarvoice, user-generated content can increase conversion rates by up to 166%.
  • Higher engagement rates: Consumers are more likely to engage with content that is created by their peers, rather than promotional content created by the brand. This can lead to higher engagement rates, which can further reduce the need for paid advertising.

Overall, consumer generated marketing can be a cost-effective way for businesses to promote their brand and reach their target audience. By leveraging the power of user-generated content, companies can reduce their marketing expenses while still engaging with their customers and building brand loyalty.

Sources:

Benefits of Consumer Generated Marketing – C. Improved Engagement

One of the key benefits of consumer generated marketing (CGM) is the improved engagement it provides for brands. By allowing consumers to create and share their own content about a brand, companies can tap into the power of user-generated content to create a more compelling and authentic brand experience.

  • According to a study by Crowdtap, user-generated content is 35% more memorable and 50% more trusted than traditional brand content.
  • By leveraging user-generated content, brands can create more authentic and relatable marketing campaigns that resonate with their target audience.
  • CGM also provides a unique opportunity for brands to engage with their customers on a deeper level by encouraging them to participate in the brand’s marketing efforts.

Engaging with customers through CGM can also lead to increased brand loyalty and advocacy. When customers feel like they are a part of the brand’s marketing efforts, they are more likely to become loyal customers and recommend the brand to others.

Overall, incorporating CGM into a brand’s marketing strategy can lead to improved engagement and more authentic marketing campaigns. By empowering customers to create and share their own content, brands can tap into the power of user-generated content and create a more engaging and memorable brand experience.

Sources: Crowdtap

Benefits of Consumer Generated Marketing – D. Greater Reach

One of the major benefits of consumer generated marketing is the ability to reach a wider audience than with traditional marketing methods. When consumers create and share content related to a product or brand, it has the potential to reach millions of people through social media, blogs, and other online platforms.

According to a study by Reputation Institute, 83% of consumers trust recommendations from people they know, and 66% trust online reviews from strangers. This means that when consumers share their experiences with a product or brand, it can have a significant impact on the purchasing decisions of others.

Furthermore, when consumers create and share their own content related to a product or brand, it can also improve search engine optimization (SEO). According to Search Engine Journal, user-generated content (UGC) can help improve search engine rankings by providing fresh, relevant content that is constantly being updated. This means that not only are consumers helping to spread the word about a product or brand, but they are also helping to improve its visibility in search engine results.

  • Greater reach through social media, blogs, and other online platforms
  • 83% of consumers trust recommendations from people they know, and 66% trust online reviews from strangers
  • User-generated content can improve search engine rankings by providing fresh, relevant content

Overall, the greater reach that comes with consumer generated marketing can be a highly effective way to promote a product or brand. By harnessing the power of user-generated content, companies can tap into the trust and influence that consumers have with their peers, while also improving their online visibility and search engine rankings.

Examples of Successful Consumer Generated Marketing

Consumer generated marketing (CGM) is a powerful way to engage with your customers and build brand loyalty. By tapping into the creativity and passion of your customers, you can create content that resonates with your target audience and drives sales. Here are some examples of successful CGM:

  • Starbucks has a dedicated section on their website where customers can share their stories, photos, and videos. This user-generated content is then featured on Starbucks’ social media channels and website, creating a sense of community and connection with their customers.
  • Apple created a campaign called “Shot on iPhone”, where they encouraged customers to submit photos taken with their iPhones. The best photos were then featured in advertising campaigns, billboards, and even an art exhibit. This campaign not only showcased the quality of the iPhone camera, but also created a sense of pride and ownership among iPhone users.
  • Doritos ran a contest called “Crash the Super Bowl”, where they asked customers to create their own Doritos commercials. The winning commercials were then aired during the Super Bowl, one of the most-watched television events of the year. This campaign not only generated buzz and excitement around the brand, but also gave customers a sense of ownership and pride in the brand’s success.

These examples demonstrate the power of CGM in creating a sense of community and connection with customers. By tapping into the creativity and passion of your customers, you can create content that resonates with your target audience and drives sales. So if you’re looking to build brand loyalty and engage with your customers, consider incorporating CGM into your marketing strategy.

Examples of Successful Consumer Generated Marketing – A. Coca-Cola’s ‘Share a Coke’ Campaign

Consumer Generated Marketing (CGM) is a type of marketing strategy that involves consumers in the creation and promotion of a brand’s content. CGM can take many forms, from user-generated content to crowdsourcing. One of the most successful examples of CGM is Coca-Cola’s ‘Share a Coke’ campaign, which was launched in Australia in 2011.

The ‘Share a Coke’ campaign involved the personalization of Coca-Cola bottles and cans with popular names and phrases. The campaign encouraged consumers to share photos of their personalized Coca-Cola bottles on social media with the hashtag #ShareACoke. The campaign was a huge success, with over 250,000 photos shared on social media platforms in the first month.

The success of the ‘Share a Coke’ campaign can be attributed to several factors:

  • Personalization: By personalizing the product with popular names and phrases, Coca-Cola was able to create a strong emotional connection with consumers.
  • Social Media: The campaign leveraged the power of social media by encouraging consumers to share their personalized Coca-Cola bottles on platforms like Facebook, Twitter, and Instagram.
  • Word-of-Mouth: The campaign generated a lot of buzz and word-of-mouth marketing, as consumers shared their personalized Coca-Cola bottles with friends and family.

The ‘Share a Coke’ campaign was a huge success, with a 2.5% increase in Coca-Cola sales in Australia during the campaign period. The campaign has since been rolled out in over 80 countries, and has become an iconic example of successful CGM.

Overall, the success of Coca-Cola’s ‘Share a Coke’ campaign demonstrates the power of CGM in creating strong emotional connections with consumers and generating buzz and word-of-mouth marketing. By involving consumers in the creation and promotion of their content, brands can create a sense of ownership and loyalty among their consumers.

Sources: Coca-Cola Company, Smart Insights

Examples of Successful Consumer Generated Marketing – B. Lay’s ‘Do Us A Flavor’ Campaign

Consumer generated marketing (CGM) has become increasingly popular among businesses looking to engage with their audience and create a buzz around their brand. One successful example of CGM is B. Lay’s ‘Do Us A Flavor’ campaign, which encouraged consumers to come up with their own unique potato chip flavors.

The campaign was a huge success, with Forbes reporting that it generated over 3.8 million submissions and increased sales by 12%. Here are some key factors that contributed to the success of the campaign:

  • User engagement: By inviting consumers to come up with their own flavors, Lay’s created a sense of ownership and engagement among their audience.
  • Social media: The campaign leveraged social media to amplify its reach, with users sharing their submissions and encouraging others to vote for their favorites.
  • Competition: By turning the campaign into a competition with a $1 million prize, Lay’s incentivized participation and created a sense of excitement among consumers.

Overall, B. Lay’s ‘Do Us A Flavor’ campaign is a great example of how CGM can be leveraged to engage with customers and create a buzz around a brand. By encouraging user-generated content and leveraging social media, Lay’s was able to create a successful campaign that resonated with their audience and ultimately boosted sales.

Examples of Successful Consumer Generated Marketing – C. Airbnb’s ‘Live There’ Campaign

Consumer generated marketing is a strategy that involves businesses using content created by their customers to promote their brand. Airbnb’s ‘Live There’ campaign is a great example of successful consumer generated marketing. The campaign was launched in 2016 and aimed to inspire travelers to explore their destination as if they were locals.

  • The campaign encouraged Airbnb users to share their stories and experiences on social media using the hashtag #LiveThere.
  • The company then used these stories to create a series of short films that showcased the unique experiences that Airbnb offers.
  • The films were shared on Airbnb’s website and social media channels, generating millions of views and engagement.

The ‘Live There’ campaign was successful for a number of reasons:

  1. It aligned with Airbnb’s brand values of providing unique and authentic travel experiences.
  2. It leveraged user-generated content, which is known to be more trusted and engaging than brand-generated content.
  3. It encouraged user participation, which helped to build a sense of community around the Airbnb brand.

According to a study by Olapic, user-generated content has a 4.5% higher conversion rate than brand-generated content. This is because consumers trust the opinions and experiences of other consumers more than they trust the marketing messages of brands.

In conclusion, Airbnb’s ‘Live There’ campaign is a great example of how businesses can leverage user-generated content to create successful marketing campaigns. By aligning with brand values, encouraging user participation and leveraging user-generated content, businesses can build trust and engagement with their audience. Consumer generated marketing is a powerful strategy that every business should consider incorporating into their marketing strategy.

Best Practices for Implementing Consumer Generated Marketing

Consumer generated marketing (CGM) has become an increasingly popular way for businesses to engage with their customers and create authentic content. CGM refers to any form of marketing that is created by consumers rather than the brand itself. Here are some best practices to consider when implementing a CGM strategy:

  • Set Clear Guidelines: It is important to provide your customers with clear guidelines on what type of content is acceptable. This can include guidelines on tone, language, and visual elements. By setting clear guidelines, you can ensure that the content created aligns with your brand values and messaging.
  • Encourage Participation: Make it easy for your customers to participate in your CGM strategy. This can include creating a specific hashtag or providing a platform for customers to submit their content. By encouraging participation, you can increase engagement and create a community around your brand.
  • Monitor and Moderate: It is important to monitor and moderate the content that is being created. This can help to ensure that the content aligns with your brand values and messaging. Additionally, monitoring and moderating can help to identify any potential issues or negative feedback.
  • Showcase User-Generated Content: Highlighting user-generated content on your website and social media channels can help to increase engagement and build trust with your audience. By showcasing the content created by your customers, you are demonstrating that you value their input and opinions.
  • Measure the Impact: It is important to measure the impact of your CGM strategy. This can include tracking engagement, reach, and conversions. By measuring the impact, you can identify what is working and what can be improved upon.

Implementing a successful CGM strategy requires careful planning and execution. By following these best practices, you can create an authentic and engaging marketing campaign that resonates with your audience.

Best Practices for Implementing Consumer Generated Marketing – A. Clearly Define Your Objectives

Consumer generated marketing (CGM) is becoming increasingly popular among brands who want to engage with their customers and build brand loyalty. However, implementing a successful CGM campaign requires careful planning and execution. One of the first steps in the process is to clearly define your objectives.

  • Start by identifying what you want to achieve with your CGM campaign. Do you want to increase brand awareness, drive sales, or improve customer engagement?
  • Consider your target audience and what type of content will resonate with them. Are you targeting millennials who prefer user-generated content over traditional advertising?
  • Set specific, measurable goals for your campaign. For example, if your objective is to increase brand awareness, set a goal to achieve a certain number of social media impressions or website visits.

By clearly defining your objectives, you can tailor your CGM campaign to meet your goals and ensure that you are measuring the right metrics to determine its success. It also helps you avoid common pitfalls such as creating content that is too generic or failing to engage with your target audience.

According to a survey by TurnTo Networks, 90% of consumers say that user-generated content influences their purchasing decisions. By implementing a successful CGM campaign, you can tap into the power of user-generated content and build a loyal following for your brand.

For more information on implementing a successful CGM campaign, check out this Forbes article.

Best Practices for Implementing Consumer Generated Marketing – B. Choose the Right Platform

When it comes to implementing consumer generated marketing, choosing the right platform is crucial. Not all platforms are created equal, and picking the wrong one can result in wasted time, effort, and money.

Consider Your Audience

  • First and foremost, consider your target audience. Which platform are they most active on? Where do they engage with brands and other users?
  • According to a survey by HubSpot, Facebook and Instagram are the top platforms for brand engagement among consumers, with Twitter and LinkedIn trailing behind.
  • However, it’s important to note that the success of a consumer generated marketing campaign also depends on the type of content being shared. For example, if the campaign is heavily focused on visual content, Instagram might be the better choice.

Understand the Platform’s Features

  • Each platform has its own set of features and limitations. Before choosing a platform, it’s important to understand what it can and cannot do.
  • For example, Facebook allows users to share a variety of content types, including text, photos, videos, and live streams. Twitter, on the other hand, limits users to 280 characters or less and does not support video uploads.
  • Understanding these limitations can help you tailor your campaign to the platform’s strengths and avoid investing time and resources into content that won’t be well-received.

Consider Your Budget

  • Finally, consider your budget. While some platforms are free to use, others require paid advertising or promotions to reach a wider audience.
  • According to a study by eMarketer, social media advertising spending is expected to reach $43 billion in 2020.
  • It’s important to weigh the potential reach and engagement of a paid campaign against the costs involved and determine if it’s worth the investment for your specific goals.

By considering your audience, understanding the platform’s features, and weighing your budget, you can choose the right platform for your consumer generated marketing campaign and maximize its success.

Best Practices for Implementing Consumer Generated Marketing – C. Encourage Participation

Encouraging participation is a crucial aspect of successfully implementing consumer generated marketing. By leveraging the power of user-generated content, businesses can connect with their customers on a deeper level, build brand awareness, and drive sales. Here are some best practices for encouraging participation:

  • Make it easy to participate: Consumers are more likely to participate if the process is simple and straightforward. Provide clear instructions and easy-to-use tools for creating and submitting content.
  • Offer incentives: Incentives can be a powerful motivator for participation. Consider offering rewards such as discounts, free products, or recognition for the best submissions.
  • Engage with participants: Show appreciation for participants by responding to their submissions and engaging with them on social media. This can help build a sense of community around your brand and encourage further participation.
  • Provide guidance: Offer guidance on the types of content you’re looking for and how it should be created. This can help ensure that the content is on-brand and meets your marketing goals.
  • Be transparent: Be transparent about how the content will be used and give credit to the creators. This can help build trust with your audience and encourage more participation in the future.

By following these best practices, businesses can create a successful consumer generated marketing campaign that encourages participation and drives results. According to Forbes, 86% of consumers say authenticity is important when deciding what brands they like and support. Consumer generated content provides a way to showcase authenticity and build trust with your audience.

Best Practices for Implementing Consumer Generated Marketing – D. Reward Your Participants

As we have discussed in previous sections, consumer generated marketing is a powerful tool that can help businesses reach new audiences and increase engagement. However, implementing a successful consumer generated marketing campaign requires careful planning and execution. One key factor to consider is how to reward your participants.

Why Rewarding Participants is Important

Offering incentives to participants is a great way to encourage them to engage with your brand and create content on your behalf. It shows that you value their time and effort, and can help to foster a sense of loyalty and community around your brand. Additionally, offering rewards can help to ensure that the content generated by participants meets a certain level of quality, as they will be motivated to put in their best effort in order to receive the reward.

Types of Rewards

When it comes to rewarding participants in consumer generated marketing campaigns, there are a variety of options to choose from. Some common types of rewards include:

  • Cash or gift cards
  • Discounts or coupons
  • Free products or services
  • Social media shoutouts or recognition

The type of reward you choose will depend on your budget, the goals of your campaign, and the preferences of your target audience. It’s important to choose a reward that is both meaningful and achievable for your participants.

Best Practices for Rewarding Participants

When it comes to rewarding participants, there are a few best practices to keep in mind:

  1. Be transparent about the reward: Make sure participants understand what they need to do in order to receive the reward, and what the reward will be.
  2. Set clear guidelines: Provide participants with clear guidelines for the content they should create, to ensure that it meets your brand’s standards.
  3. Make it easy to participate: Keep the entry process simple and straightforward, to encourage more people to participate.
  4. Follow through on your promises: Make sure you deliver the promised reward in a timely manner, to maintain participants’ trust and loyalty.

By following these best practices, you can create a rewarding and engaging consumer generated marketing campaign that benefits both your brand and your participants.

Sources:

Conclusion

In conclusion, consumer generated marketing has become an increasingly important aspect of modern marketing strategies. As we have discussed, it provides a number of benefits for companies, including increased brand awareness, customer engagement, and cost-effectiveness.

However, it is important to note that there are also some potential drawbacks to using consumer generated marketing, such as the risk of negative publicity or the loss of control over the brand image. Therefore, companies must carefully weigh the tradeoffs involved before deciding to implement a consumer generated marketing campaign.

Despite these challenges, the benefits of consumer generated marketing cannot be ignored. By leveraging the power of user-generated content, companies can create more authentic and engaging marketing campaigns that resonate with their target audience.

Overall, consumer generated marketing is a valuable tool for companies looking to build their brand and connect with their customers. As the marketing landscape continues to evolve, we can expect to see even more innovative uses of consumer generated content in the years to come.

For more information on consumer generated marketing, check out this article from Forbes and this piece from Business2Community.

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