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3 Ways to Measure ROI on User-Generated Content

3 Ways to Measure ROI on User-Generated Content

M-I-C-K-E-Y M-O-U-S-E is now using S-O-C-I-A-L M-E-D-I-A to further engage its already enthusiastic brand fans. Beginning this fall, Disney guests will be able to share their photos, videos, and other content on the company website.

User-generated content (UGC) campaigns like this one generate tons of buzz, but do they have the potential to generate ROI? First, UGC is comprised of so much more than happy vacationers posting video of their kids gleefully hugging a much-loved character. It encompasses any media created by an end-user and shared publicly, including ratings, reviews, forums, social network sites, photo sharing sites, and blogs. The fact is that all of these channels have the potential to create a return on social media investment. How?

1. Decreased cost of customer service – Does your line of clothing fit large or small? How long will it take to set up my kid’s new educational game system? In years past, customer service reps were the primary source for this kind of information. Now when consumers want info, they turn to their favorite search engine. From product review sites to comments on your blog, consumers may be more likely to reference other users’ experiences before they start up a chat line with your call center.
2. Decreased returns - Shoppers increasingly turn to the web to research purchases. One research firm found that as many as 90% of shoppers turn to online search engines before making a purchase. By looking at reviews and comments by other consumers, a customer can make a buying decision that’s better informed, potentially lowering the return rate.
3. Improved products and services – “Your product SUCKS!” Some reviews are, frankly, downright painful. But don’t let the sting of an angry commenter leave you feeling low. Use it as an opportunity to engage the customer. Was there a particular aspect of the product they didn’t like? How could the experience be improved? Now is the time to find out the cause and, if you detect a trend, adjust the product accordingly. Don’t neglect the power of positive UGC either. When customers consistently write that they love the way a customer service rep handled their complaint, aim to replicate that experience for every shopper.

Learn how to use user-generated content to increase return on investment. The team of analysts at Social Strategy1 is ready to help you leverage the power of UGC to build your business.