CGM has become an increasingly popular marketing strategy in recent years as brands seek to harness the power of user-generated content to build awareness, engagement, and loyalty. CGM involves customers creating and sharing content about a brand or product, including social media posts, reviews, and user-generated content campaigns.
This type of content is often seen as more authentic and trustworthy than traditional marketing materials, as it comes from real customers and reflects their experiences and opinions.
This blog will explore the importance, benefits, and strategies for effective CGM.
What is Consumer generated marketing?
Consumer generated marketing (CGM) is a strategy that encourages consumers to create and share content about a product or service. This content can take many forms, such as reviews, photos, videos, blog posts, and social media updates. The idea behind CGM is that by giving consumers a platform to share their experiences and opinions, companies can create a more engaging and authentic brand image.
One of the main advantages of CGM is that it allows companies to tap into the power of word-of-mouth marketing. Consumers are more likely to trust recommendations from friends and family than advertising or other company-generated content. By leveraging the voices of their customers, companies can create a more compelling brand narrative that resonates with their target audience.
Another benefit of CGM is that it can be a cost-effective way to generate content. Rather than investing in expensive advertising campaigns, companies can rely on their customers to create and share content on their behalf. It not only saves money but also helps to build a sense of community around the brand.
However, CGM is not without its risks. Negative reviews or comments can damage a brand’s reputation if addressed. Because it relies on consumers to create content, companies may need more control over the messaging or tone of the generated content.
To mitigate these risks, companies need to have a well-planned CGM strategy that includes guidelines for creating and sharing content. Companies also need to be prepared to engage with their customers and respond to any negative feedback that may arise. Doing so can turn potential negatives into positives and build stronger relationships with their customers.
Importance of CGM
1. Builds trust and credibility
Consumers trust the opinions and recommendations of their peers more than they do advertisements or branded content. CGM provides a more authentic and unbiased perspective, which can increase consumer trust and credibility in the brand.
2. Increases brand awareness
CGM can help increase brand awareness by leveraging the reach of social media and online communities. When customers share their experiences and content, it can reach a wider audience and attract new customers.
3. Provides social proof
CGM delivers social evidence for a product or service, which can be a powerful marketing tool. When customers share positive experiences and feedback, it can also influence others to try the product or service.
4. Offers valuable insights
CGM provides companies with valuable insights into their customers’ experiences and preferences. By analyzing customer-generated content, companies can identify common themes, pain points, and opportunities for improvement.
5. Enhances engagement
CGM allows companies to engage with their customers and build a sense of community. By encouraging customers to share their experiences and content, companies can create a more personalized and engaging brand experience.
CGM can be a cost-effective way for companies to generate content and promote their products or services. By leveraging the power of customer-generated content, companies can save on advertising costs and increase the reach and impact of their marketing efforts.
Benefits of CGM
- Increased brand loyalty: By encouraging customers to create and share content about their experiences with a brand, CGM can help to increase brand loyalty. When customers feel their voices are heard and valued, they are likely to continue using a product or service.
- Improves customer engagement: CGM can effectively increase customer engagement and create a sense of community around a brand. By encouraging customers to share their experiences and interact with one another, companies can create a more personalized and engaging brand experience.
- Social proof: CGM can provide social proof for a product or service. When customers share positive experiences and feedback, it can also influence others to try the product or service.
- Boosts SEO: CGM can help to improve search engine optimization (SEO) by providing fresh and relevant content that includes keywords related to a product or service. When customers create content about a brand, it can help to increase its visibility and improve its search engine rankings.
- Enhances customer insights: CGM can provide valuable insights into customer behavior and preferences. By analyzing customer-generated content, companies can identify trends and pain points and use that information to improve their products and services.
- Builds trust with Millennials and Gen Z: Millennials and Gen Z consumers are highly influenced by user-generated content, with 84% of millennials and 74% of Gen Z saying they trust it more than traditional advertising. By leveraging CGM, companies can build trust with these critical demographics.
- Generates content for multiple platforms: CGM can generate content for use on various platforms, including social media, websites, and advertising campaigns. By leveraging user-generated content, companies can save time and resources on content creation while increasing the reach and impact of their marketing efforts.
Strategies for effective Consumer generated marketing
1. Identify your target audience
Identifying your target audience is the first step in creating an effective CGM strategy. It involves researching customer demographics, interests, and behavior to understand their motivations and preferences. Understanding your target audience can tailor your CGM strategy to appeal to them and increase engagement.
For example, suppose your target audience is young and social media-savvy. In that case, you might focus on creating a user-generated content campaign on Instagram that encourages customers to share their experiences using your product or service.
2. Make participation easy
Customers need to join your CGM strategy to increase engagement. It involves providing clear instructions on creating and sharing content, such as using a specific hashtag or submitting content through a user-generated content portal.
For example, Coca-Cola created a user-generated content campaign called “Share a Coke” that encouraged customers to share photos of themselves with personalized Coca-Cola bottles using the hashtag #ShareaCoke.
3. Encourage participation
Encouraging participation in your CGM strategy can be achieved through various incentives. It can include offering discounts, exclusive access to products or services, or the chance to be featured on your website or social media channels.
For example, Airbnb encourages customers to share their travel experiences on Instagram using the hashtag #Airbnb and selects the best photos to feature on their website and social media channels.
4. Monitor and respond
Monitoring and responding to customer-generated content is essential to show that you value their participation and engagement. It involves actively monitoring social media channels and other platforms for customer-generated content and responding to comments and feedback.
For example, Starbucks regularly engages with customers on social media, responding to positive and negative comments and thanking them for sharing their experiences.
5. Be transparent
Being transparent and honest about using customer-generated content is critical to building trust with your customers. It involves asking permission to use customer-generated content and giving credit where appropriate.
For example, GoPro frequently shares customer-generated content on its social media channels and website and always gives credit to the original creator.
6. Foster a sense of community
Using CGM to create a sense of community around your brand can help to increase engagement and loyalty. It involves encouraging customers to share their experiences and connect.
For example, Lululemon created a user-generated content campaign called #TheSweatLife, enabling customers to share photos and stories of their fitness journeys.
7. Promote user-generated content
Promoting user-generated content across all marketing channels can help to increase brand awareness and engagement. It involves featuring customer-generated content on your website, social media channels, and advertising campaigns.
For example, Apple regularly features a customer-generated range in its advertising campaigns, highlighting the creativity and innovation of its customers.
8. Leverage influencers
Partnering with influencers with a large following can help promote your brand and encourage customer-generated content. It involves identifying influencers who align with your brand values and audience and collaborating to create content that resonates with their followers.
For example, Nike partnered with basketball player LeBron James to create a user-generated content campaign called #StriveForGreatness, encouraging customers to share their fitness goals and workouts.
9. Highlight customer success stories
Use customer success stories to showcase the benefits of your product or service and encourage others to share their experiences.
10. Create a branded hashtag
11. Host contests and giveaways
12. Share customer-generated content
Share customer-generated content on your website and social media channels to showcase the voices and experiences of your customers. It can build trust and credibility with potential customers.
13. Monitor and measure results
Monitoring and measuring the results of your CGM strategy is critical to understanding what is working and what needs to be improved. It can help you to refine your strategy and improve your overall results.
14. Respond to negative feedback
Responding constructively and professionally is essential to building customer trust. It can help to improve the customer experience and increase engagement.
15. Continuously improve
Continuously improving your CGM strategy is essential to staying relevant and meeting the changing needs of your customers. It includes analyzing customer behavior and preferences and adapting your approach to meet their needs.
Overall, CGM is a crucial marketing strategy that can benefit companies. By leveraging the voices and experiences of their customers, companies can build stronger relationships with their target audience, generate valuable content, and create a more effective and authentic brand image.
By implementing these strategies, companies can effectively leverage the power of consumer generated marketing to build brand awareness, increase engagement, and drive sales.
For more help with Consumer generated marketing, contact InviteReferrals.
What are some examples of CGM?
Examples of CGM include social media posts featuring a brand or product; customer reviews on e-commerce sites, and user-generated content campaigns that encourage customers to create and share content, such as photos or videos, using a specific hashtag.
How can brands encourage CGM?
Brands can encourage CGM by making it easy for customers to create and share content, offering incentives or rewards for participation, and creating a sense of community around the brand. Brands can also partner with influencers or highlight customer success stories to encourage more participation.
How can brands monitor and respond to CGM?
Brands can monitor CGM by actively monitoring social media channels and other platforms for customer-generated content and responding to comments and feedback. Brands can also use social listening software to track and analyze customer conversations and sentiments. Brands need to respond to both positive and negative comments and feedback promptly and respectfully.