From Screen to Cart: How UGC Videos Affect Purchase Decisions

Discover how UGC videos impact purchase decisions, building trust and driving conversions in ecommerce. Learn to harness their power for your brand with Swirl.

Nidhi Sharma
July 2, 2024
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Ever wondered how user-generated content can transform your ecommerce strategy? UGC video reviews and ratings play a pivotal role in shaping purchase decisions at every stage of the ecommerce funnel. From building initial awareness to reinforcing trust and driving conversions, UGC videos offer authentic insights that resonate with potential buyers. In this blog, we’ll explore how UGC video reviews and ratings impact consumer behavior and enhance the shopping experience at each funnel stage.

Stage 1: Awareness

UGC videos serve as powerful tools for attracting attention at the top of the funnel. Seeing real people using and enjoying your products can create a solid first impression when potential customers encounter your brand. According to this survey, to learn about new products:

  • 74% of people look at reviews and ratings
  • 60% of customers prefer user-generated imagery

At the awareness stage, UGC videos can:

1. Attract Attention: UGC videos grab the attention of potential customers with genuine, relatable content.

2. Build Initial Trust: Real people sharing their authentic experiences build trust and credibility right from the start.

3. Create an Impression: Authentic glimpses into product performance make your brand memorable and intriguing.

4. Show Real-World Application: Seeing real customers use your products in real life builds a sense of authenticity and possibility in viewers’ minds. 

Brands can employ UGC videos across their websites, social media, paid ads, and even traditional marketing strategies like TV ads. 

Stage 2: Consideration

During the consideration stage, consumers are aware of your brand and products. Now, they're researching and evaluating to determine if your products make the perfect match for their needs. 

When 98% of shoppers consider reviews a crucial resource for making purchasing decisions, why not amplify the impact with UGC video reviews? 

1. Provide Unbiased Testimonials: UGC videos offer firsthand testimonials and demonstrations that resonate with consumers.

2. Illustrate Product Benefits: Real user experiences showcase the benefits and features of your products effectively, which could be missing in static images, text reviews, or long-form content. 

3. Ease Comparison: Helps potential buyers compare different products, making it easier to decide which one best meets their needs and move from consideration to intent. 

Brands can embed a UGC video carousel on their homepage or PDP to increase consideration and intent, and also add a shoppable layer to streamline the purchase journey. Retargeting potential customers with UGC videos can also help boost conversions. 

Stage 3: Conversion

After a potential buyer has discovered and considered your product, you still need to go the extra mile to solidify their purchase decision. According to a survey by Power Reviews, brands experienced a 108.6% conversion lift in shoppers who referred to reviews and ratings.

Positive reviews and ratings from other satisfied customers can confirm that your product delivers on its promises and increases confidence in the purchase decision. This added layer of assurance can be the final nudge needed to convert hesitant shoppers into paying customers.

1. Addresses Doubts: UGC video reviews can often answer additional queries such as real-world applications, actual user experience, pros and cons, etc. 

2. Increases Confidence: Positive reviews and testimonials from satisfied customers make for a convincing appeal and provide a layer of credibility. 

3. Provides Final Assurance: Seeing real people endorse your product adds a layer of reassurance that can convert hesitant shoppers into paying customers.

Brands can elevate their PDPs, send personalized emails and messages, and employ targeted marketing featuring UGC videos to give the final boost essential for converting a customer. 

Stage 4: Retention

A good marketer knows that the customer journey doesn’t simply end at conversion. Retaining customers is equally important. UGC videos contribute to customer retention by:

1. Fostering Community: UGC videos help create a sense of community and ongoing engagement among customers. They reinforce the purchase decision and satisfaction level, encouraging customer loyalty. 

2. Enhancing Customer Experience: UGC video reviews can provide tips, tricks, and inspiration on how to get the most out of your products.

3. Encourages Loyalty: Continual engagement through UGC keeps your brand top-of-mind and encourages repeat purchases.

Brands can keep customers engaged through social media, personalized email campaigns, push notifications, exclusive offers, and more. 

Stage 5: Advocacy

This sweet stage is where most brands aspire to be. Your efforts come full circle when customers have discovered, trusted, considered, purchased, and had a positive product experience, turning them into your brand advocates. 

This is when they are ready to create their own UGC content. These videos are incredibly valuable as they provide authentic endorsements that can attract new potential buyers. 

1. Boost Credibility: Authentic endorsements from happy customers enhance your brand’s credibility.

2. Expand Reach: Word-of-mouth marketing through UGC expands your reach and attracts new potential buyers.

3. Drive New Acquisition: Encouraging UGC builds a community of advocates who help drive new customer acquisition.

Conclusion

The future of UGC in e-commerce is bright, with its influence on purchase decisions continually growing. As consumers increasingly rely on authentic content and social proof, UGC video reviews are set to become even more crucial in shaping the e-commerce landscape. Brands that prioritize UGC strategies can expect higher conversion rates, enhanced customer trust, and sustained growth. Want to implement UGC content effectively for your brand? Contact us today to know more. 

Nidhi Sharma
Marketing Executive

With 8 years of writing experience, Nidhi brings Swirl's voice to life, delivering insightful updates and industry trends with video commerce and pertinent ideas at her fingertips.

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