Topic user generated content marketing – effectiveness and application

MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY FACULTY OF LOGISTICS-INTERNATIONAL TRADE FINAL REPORT TOPIC: USER-GENERATED CONTENT MARKETING – EFFECTIVENESS AND APPLICATION Course Title : Electronic Commerce Course ID : EC201DE01 Class ID : 1174 Lecturer : Ngo Minh Tra (Ms.) Group :3 Students : Nguyễn Như Cát Tiên 22014772 Phan Thanh Trường 22000257 Quách Nhật Thy 22000441 Nguyễn Ngọc Hải Đông 22014476 Võ Thị Minh Như 2180695 Trần Nguyễn Hữu Nhân 22013025 Ho Chi Minh City, 12/2022 i Trần Nguyễn Hữu Nhân 22013025 Ho Chi Minh City, 12/2022 i FINAL REPORT TOPIC: USER-GENERATED CONTENT MARKETING – EFFECTIVENESS AND APPLICATION Course Title : Electronic Commerce Course ID : EC201DE01 Class ID : 1174 Lecturer : Ngo Minh Tra (Ms.) Group :3 Students : Nguyễn Như Cát Tiên 22014772 Phan Thanh Trường 22000257 Quách Nhật Thy 22000441 Nguyễn Ngọc Hải Đông 22014476 Võ Thị Minh Như 2180695 Trần Nguyễn Hữu Nhân 22013025 ii Ho ChiDISTRIBUTION Minh City, 12/2022 TASK Level of No Student ID Full name Assigned Task 22014772 Nguyễn Như Cát Tiên Part 3; 4; Accomplishment 100% Trần Nguyễn Hữu Nhân 22013025 ii Ho ChiDISTRIBUTION Minh City, 12/2022 TASK Level of No Student ID Full name Assigned Task 22014772 Nguyễn Như Cát Tiên Part 3; 4; Accomplishment 100% Conclusion, Introduction 22000257 Phan Thanh Trường Part 1; 100% Synthesize 22000441 Quách Nhật Thy Part 3;4;5 100% 22014476 Nguyễn Ngọc Hải Đông Part 3; 4; 100% 2180695 Võ Thị Minh Như Part ;4 100% Acknowledgments 22013025 Trần Nguyễn Hữu Nhân Part ;4 100% iii HONOR PLEDGE “I have read and understood the behaviours of academic integrity violation I affirm that I have not given or received any unauthorised help on this assignment, and that iii HONOR PLEDGE “I have read and understood the behaviours of academic integrity violation I affirm that I have not given or received any unauthorised help on this assignment, and that this work is my own” Date: 29 / 12 /2022 (Name and signature) Full name Confirmation Nguyễn Như Cát Tiên Phan Thanh Trường Quách Nhật Thy Nguyễn Ngọc Hải Đông Võ Thị Minh Như Trần Nguyễn Hữu Nhân iv RECOMMENDATIONS OF LECTURER iv RECOMMENDATIONS OF LECTURER v ACKNOWLEDGMENTS Our team would like to express our deepest gratitude to the contributions not only of the team members but also to the supporters, whether directly or indirectly, in this final report of our group v ACKNOWLEDGMENTS Our team would like to express our deepest gratitude to the contributions not only of the team members but also to the supporters, whether directly or indirectly, in this final report of our group To be able to complete this final report, the team would like to thank Ms Ngo Minh Tra, a lecturer at Hoa Sen University She enthusiastically guided and answered the lessons, enthusiastically guided and helped our group a lot in this final report And thank you to Hoa Sen University for allowing us to study E-Commerce Without the knowledge of the subject and the teaching of the teachers in this subject, we would not have been able to make a report that understands how important user-generated applications Also thank the team members for their efforts, best efforts, solidarity, enthusiasm enthusiasm with this final report Thanks to that, the report this term can be completed on time and on time for her and Hoa Sen University Document continues below vi Discover more from: Digital marketing 37 documents Document continues below vi Discover more from: Digital marketing 37 documents Go to course Digital Final-report Theyenconcept 42 Digital marketing 100% (1) CHIẾN DỊCH Digital MKT CỦA Innisfree 34 Digital marketing 67% (3) 10 Strategy Exercises To Practice 46 Digital marketing None Phát động phong trào thi đua Digital marketing None Handout - A lot of things are irrelevant 24 Digital marketing None Báo cáo thực tập tốt nghiệp Đề xuất giải pháp Marketing nâng cao hiệu quảng bá hình ảnh cho thương hiệu… Digital marketing TABLE OF CONTENTS None ACKNOWLEDGMENTS vi TABLE OF CONTENTS vii LIST OF ACRONYMS x Báo cáo thực tập tốt nghiệp Đề xuất giải pháp Marketing nâng cao hiệu quảng bá hình ảnh cho thương hiệu… 24 Digital marketing TABLE OF CONTENTS None ACKNOWLEDGMENTS vi TABLE OF CONTENTS vii LIST OF ACRONYMS x INTRODUCTION 1 THEORETICAL OVERVIEW 1.1 Overview of E-commerce 1.1.1 Definition of E-commerce 1.1.2 Major trends in E-Commerce 1.2 Overview of User-generated content marketing 1.2.1 The concept of Content Marketing 1.2.2 The concept of User-Generated Content Marketing 1.2.3 The role of User-Generated Marketing 1.2.4 Types of User-Based Content Marketing UGC IN SOCIAL MEDIA AND E-COMMERCE SITES 2.1 UGC Marketing in Social media .9 2.1.1 Facebook .9 2.1.2 Instagram 11 2.1.3 Tiktok 12 2.1.4 Youtube .14 2.2 UGC Marketing in E-commerce sites 19 2.2.1 Review and Rating 20 2.2.2 Affiliate 23 2.2.3 Campaign 24 OTHER PLATFORMS CREATE UGC MARKETING 25 3.1 Google Review 25 3.2 Shopify .27 3.2.1 Types of UGC in Shopify 27 3.2.2 Shopify’s tools supporting UGC .30 ANALYSIS AND ASSESSMENT OF UGC MARKETING .32 4.1 Advantages of UGC Marketing .32 4.1.1 UGC on Social media and E-commerce sites 32 4.1.2 UGC Marketing in Other platforms 35 4.2 Limitations of UGC Marketing .37 vii 4.2.1 UGC Marketing on Social media and E-commerce sites .37 4.2.2 UGC Marketing in Other platforms 38 4.3 Case Study .39 RECOMMENDATIONS 41 4.1 Advantages of UGC Marketing .32 4.1.1 UGC on Social media and E-commerce sites 32 4.1.2 UGC Marketing in Other platforms 35 4.2 Limitations of UGC Marketing .37 vii 4.2.1 UGC Marketing on Social media and E-commerce sites .37 4.2.2 UGC Marketing in Other platforms 38 4.3 Case Study .39 RECOMMENDATIONS 41 5.1 UGC Marketing on Social media and E-commerce sites 41 5.2 UGC Marketing in Other platforms .42 CONCLUSION .43 REFERENCES xiii viii LIST OF FIGURES Figure 1- Retail E-Commerce sales worldwide 2014-2025 Figure 2- Stackla survey on the authenticity of branded content UGC Figure 3- The usage of social media around the world viii LIST OF FIGURES Figure 1- Retail E-Commerce sales worldwide 2014-2025 Figure 2- Stackla survey on the authenticity of branded content UGC Figure 3- The usage of social media around the world Figure 4- Facebook users 10 Figure Tools on Facebook 10 Figure 6- Marketplace on Facebook 11 Figure 7- UGC as a post on Instagram 12 Figure 8- Reels on Instagram 12 Figure 9- Creator in the coding field 15 Figure 10- Creator in the beauty field 15 Figure 11- Converting video to GIP 16 Figure 12- short videos on Youtube 17 Figure 13-The State of User-Generated Content 2022 19 Figure 14- Shopee's review policy 20 Figure 15- Coin exchange interface 21 Figure 16- Example of Customer’s Reviews 22 Figure 17- Interface after reviewing Tiki 23 Figure 18- Tiki Affiliate Marketing Program 24 Figure 19- Shopee Blog - “Review hay nhan ngan xu” 25 Figure 20- Example of Review on Google Review 26 Figure 21- Logo Shopify 27 Figure 22- Review of Shopify 28 Figure 23- “Are ratings and reviews important for your organization?” 33 Figure 24- Business performance on Shopify 36 Figure 25- Ecommerce Platform Market Share in USA 2022 37 Figure 26- "Stranger Things" UGC 40 Figure 27- The #ShotOnIphone campaign 40 ix LIST OF ACRONYMS UGC marketing User-generated content marketing 31 ANALYSIS AND ASSESSMENT OF UGC MARKETING 4.1 Advantages of UGC Marketing 4.1.1 UGC on Social media and E-commerce sites With the rapid digitization speed, consumers are having a lot of different choices for the same content Specifically, up to 4.4 million blogs, 500 hours of videos, along with millions of internet content are posted every day That makes it increasingly difficult to get consumers' attention With so many different options to choose from, quality and authentic content will help businesses win the trust and attention of their customers And there is no other type of content more trustworthy than User-generated content (UGC) created by the brand's customers (Ngọc, 2021) • Reach new users UGC can expand the file of potential customers when users share about their products or services on social networks According to a study conducted by Nielsen, 92% of users believe that content shared by their friends and loved ones is more meaningful than any other message from the brand itself • Create trust and motivate consumers to buy If the product has been used and has positive reviews, even reviews from acquaintances, this will greatly affect the customer's decision to choose the product According to cMetric, a social listening agency in Vietnam, marketers agree that 93% of consumers trust customer-generated content more than brand-generated content (People trust People), and 75% believe that adding UGC makes brand content more authentic (Ngọc, 2021) Currently, consumers tend to believe in user-generated content, as mentioned above, 72% of consumers believe that reviews and testimonials submitted by customers are more reliable than the brand talking about their products (TINT, 2022) 32 Therefore, the great benefit of UGC is to increase the prestige and credibility of the brand Also according to a statistic of TINT report when asked Are ratings and reviews important for your organization? up to 70% of marketers surveyed answered yes It is the main reason people trust existing customer reviews over customers are more reliable than the brand talking about their products (TINT, 2022) 32 Therefore, the great benefit of UGC is to increase the prestige and credibility of the brand Also according to a statistic of TINT report when asked Are ratings and reviews important for your organization? up to 70% of marketers surveyed answered yes It is the main reason people trust existing customer reviews over product descriptions on the E-Commerce spectrum Figure 23- “Are ratings and reviews important for your organization?” Source: TINT report • Connecting brands and customers / Brand Awareness Marketing and communication have long ceased to be one-way interactions Regular two-way interactions between businesses and customers will help strengthen brand trust, drive revenue, and create brand loyalty UGC helps consumers access products more diversely and the image of the brand is also spread more widely For example, in the contest "Review or get a thousand cents immediately", consumers tend to share their creativity with friends and relatives In this case, consumers are acting as ambassadors for the brand they 33 review So UGC helps brands a lot in increasing brand awareness (MICHAELOUDIS, 2022) • "Solving" the creative problem of Marketers and relatives In this case, consumers are acting as ambassadors for the brand they 33 review So UGC helps brands a lot in increasing brand awareness (MICHAELOUDIS, 2022) • "Solving" the creative problem of Marketers As social networks grow, users are getting smarter and more demanding Therefore, creators need to continuously deliver more creative and interesting TVCs, images, and ads (Ngọc, 2021) Facing these difficult problems, the marketing department has been "exploiting" new ideas According to TINT's UGC status report for 2021, 72.2% of marketers say they have a lot more responsibility now than in 2019 52% of marketers believe that time is a challenge when it comes to products Export visual content and social media content (TINT, 2022) • Conversions The best benefit of UGC for brands is sales conversion Because according to the decision-making steps in consumer behavior, consumers always refer to information from friends, relatives, and people who have used the product Therefore, UGC has a great influence on customers' purchasing decisions And according to the statistics of the TINT report, up to 76% of consumers have purchased products recommended by others before This is a number that shows how UGC has greatly influenced consumers' purchasing decisions (TINT, 2022) • Saving cost Customers with ads or KOLs that brands have to pay a lot of money to promote their products UGC is a very cost-effective but extremely effective way of advertising Because this is content created by consumers themselves and they will refer to their friends and relatives Brands and E-Commerce exchanges often pay vouchers to encourage them to such content And of course, the amount of money to spend to motivate consumers to create content is much less than when booking a KOL to promote the product (SUNIDHI, 2021) 34 4.1.2 UGC Marketing in Other platforms • Encourage submissions with competitions and rewards Giveaways and contests have purposes beyond raising brand awareness They f l ff i i f ki i b d i ii i y p booking a KOL to promote the product (SUNIDHI, 2021) 34 4.1.2 UGC Marketing in Other platforms • Encourage submissions with competitions and rewards Giveaways and contests have purposes beyond raising brand awareness They frequently offer incentives for taking part in a brand's UGC initiatives For example, a straightforward photo contest where participants submit their best images that adhere to a specific subject might assist in crowdsourcing future content for your social media calendar and honor your most loyal audience members In the aforementioned illustration, Letterfolk utilizes the hashtag #LetterfolkDOTM to solicit user contributions for its Design of the Month competitions, which invite users to post Instagram stories showcasing the creations they make using the company's tile mat When your audience posts their entries in a contest like this, you may enhance your audience's social media reach and create UGC you can • In post-purchase marketing touchpoints, request UGC When a new client places an order and has had sufficient experience using your goods to form an opinion, it is the greatest time to ask them to make UGC about your products These touchpoints can be any of the following: - Goods packaging and inserts with subtle directions on how to share your product when they unbox it automated post-sales emails that appear in their inbox after their order is delivered by mail - Loyalty programs that reward users with points they may spend for future purchases when they post on social media or leave reviews (browse loyalty and rewards Shopify apps to implement your own) - Submit user-generated material by including a call to action in postsale emails and offering two tiers of discounts For example 10% off your next purchase in exchange for a review or 20% off a subsequent purchase when you include a photo and a video in your review 35 • Business performance For example, Kylie Cosmetics is one of the brands using the Shopify platform from the early days with extremely impressive revenue Kylie Cosmetics started li b di d j ll b i h i purchase when you include a photo and a video in your review 35 • Business performance For example, Kylie Cosmetics is one of the brands using the Shopify platform from the early days with extremely impressive revenue Kylie Cosmetics started as an online brand in 2016 and was just a small business at the time However, according to Forbes, this brand thanks to using the right platform for its product characteristics, first year's revenue was $ 330 million and the following year was $ 307 million So far, sales have jumped to somewhere between $500 million and $1 billion (meowcar, 2022) Figure 24- Business performance on Shopify It is because of its easy-to-use features for businesses and widely applied across other tools, platforms, or applications that have helped Shopify increase its market share and revenue Based on Shopify's financial statements, Shopify's revenue has increased to about $500,000 Besides, globally, more than 2,000,000 sales websites are using the Shopify platform In Vietnam alone, about 2000 websites are using the Shopify platform In the US, Shopify accounts for about 32% of the market share in the e-commerce platform, followed by Woocommerce (belonging to Shopify) (Shopify, 2018) 36 36 Figure 25- Ecommerce Platform Market Share in USA 2022 4.2 Limitations of UGC Marketing 4.2.1 UGC Marketing on Social media and E-commerce sites • Unknown and Unreliable Sources Another prominent problem of UGC is that of unknown and unreliable sources Some people might be reluctant to trust a random person with no authoritative background However, that is not the only issue that arises With so many different content contributors, it’s easy to abuse the system with aliases and fake accounts The same applies to user reviews That is why some users might not be inclined to trust UGC as much as others • Negative content is inevitable or fake Just like UGC can help you alleviate your content needs, it can also provide some damaging content Regardless of whether talking about poorly written blog posts, negative or inappropriate comments, or poor product reviews, the damage these can to a brand can be significant So we must tread carefully when relying on consumer-generated media to carry an online presence 37 • Requires Close Supervision This downside of consumer-generated marketing is connected to the previous one The thing is that getting negative content is inevitable, you will need someone i i i fi d i ll b f bli hi k on consumer-generated media to carry an online presence 37 • Requires Close Supervision This downside of consumer-generated marketing is connected to the previous one The thing is that getting negative content is inevitable, you will need someone to supervise it Having to find a person to monitor all UGC before publishing takes time and money And you can’t cut costs by deciding not to moderate usergenerated content If it does, the brand might fall victim to a Black Hat SEO attack By the time we notice it, the damage might have already been done (Brid, 2021) 4.2.2 UGC Marketing in Other platforms • Limited functionality Shopify also has the necessary functions for businesses large and small, but there will also be businesses that require features that Shopify does not have to serve • Add - Ons is expensive They only provide basic features without advanced so it will be expensive for customers to buy Add - Ons but that cost can help your business increase high revenue • Transaction fee Shopify cart has reduced the cost, but Shopify still keeps the fee from 0.5% 0.15% for the service package that you have chosen to use and pay • Overload when supporting In recent years, Shopify's support service has decreased significantly, partly because consumers use the Shopify application a lot, so when customers need support, they have to wait 1-3 minutes • Shopify's UGC is now for active customers 38 Meaning customers who actively seek out new product information can access user-generated marketing content Therefore, it has not been able to increase the wide coverage of products to consumers (Shopify, 2018) 38 Meaning customers who actively seek out new product information can access user-generated marketing content Therefore, it has not been able to increase the wide coverage of products to consumers (Shopify, 2018) 4.3 Case Study UGC has become one of the most effective tools often seen in marketing campaigns, helping names like Apple, Coca-Cola, and Starbucks, to take advantage of the unlimited creative power of users to spread the word Communicate and promote your brand effectively Netflix ran a successful UGC campaign to brand this film in 2017, inspired by the "Stranger Things" series When releasing information about an upcoming film, Netflix will typically use hashtags on social media to encourage fans to use them in their posts Netflix used the film's title #StrangerThings2 to enter hashtags and post them on social media to "flash" the series' return The hashtag #StrangerThings2 immediately piqued the interest of fans of the film, and people began to share the hashtag more frequently, compelling those who had never heard of the film to learn more People gradually began posting photos of their strange daily activities on social media with the hashtag #StrangerThings2 In Apple's case, "nothing can be more authentic than images that show the customer's love for the brand," according to the company Apple quickly recognized the difficulty of using an iPhone with a camera that couldn't take lowlight photos, and thus the #ShotOnIphone campaign was born This campaign has contributed to a new level of customer engagement with images captured by Apple's iPhone camera Apple has put in a lot of effort to make the campaign successful to restore its reputation and brand loyalty The #ShotOnIphone campaign encourages amateur and professional iPhone users to take and post low-light images online using their devices Apple used the hashtag #ShotOnIphone to publish the gorgeous low-light 39 photographs to YouTube With its clever UGC strategy, Apple not only won back customers' trust but also enhanced brand exposure on social media, avoiding the majority of the expense of creating marketing content Additionally, Apple makes customers feel special when it incorporates its images into its global advertising and professional iPhone users to take and post low-light images online using their devices Apple used the hashtag #ShotOnIphone to publish the gorgeous low-light 39 photographs to YouTube With its clever UGC strategy, Apple not only won back customers' trust but also enhanced brand exposure on social media, avoiding the majority of the expense of creating marketing content Additionally, Apple makes customers feel special when it incorporates its images into its global advertising efforts That further enhances Apple's relationship with its clients by fostering a sense of community among them and helping the company quickly rebuild its reputation among customers Figure 26- "Stranger Things" UGC Figure 27- The #ShotOnIphone campaign 40 RECOMMENDATIONS 5.1 UGC Marketing on Social media and E-commerce sites We need to use UGC as optimally as possible to get the best effect Figure 27- The #ShotOnIphone campaign 40 RECOMMENDATIONS 5.1 UGC Marketing on Social media and E-commerce sites We need to use UGC as optimally as possible to get the best effect • Do not use UGC that does not match the brand image The creativity of user-generated content is undisputed In addition to UGCs created voluntarily, UGC campaigns will help businesses encourage customers to create more new and unique UGCs An effective UGC campaign needs to match the brand's image and story If the campaign deviates from the core values and vision of the brand, the customer will not be able to feel in tune and not participate in the campaign Therefore, businesses need to think about what makes customers love and buy products so that they can develop a campaign that is in tune with consumer preferences and beliefs • Don't let the interaction with your customers fade away Customer engagement helps drive user-generated content, and those UGCs will continue to drive brand engagement with customers; from there, creating a rotating content-interaction loop The business's mission is to encourage this loop to continuously operate through frequent interactions with the content that customers post Businesses can track hashtags related to their brand that users often use when posting content Respond, like, or share impressive content to encourage creativity and engagement with your customers (Brid, 2021) Sincere feedback from businesses will help customers feel heard and cared about, thereby helping to strengthen the relationship between customers and the brand 41 • Solve fake-review problems E-Commerce Exchanges can verify the IP address when they find that the Shop or an individual is cheating in self-assessment to increase its reputation and attract h d i h h h h ld brand 41 • Solve fake-review problems E-Commerce Exchanges can verify the IP address when they find that the Shop or an individual is cheating in self-assessment to increase its reputation and attract customers When detecting these cases, the E-Commerce Exchange should withdraw the reward for reviews and ratings, if it is a shop, it should delete all fake reviews and ratings, and penalize that shop • Check the quality of reviews and ratings E-Commerce Exchanges can set up a team to check the quality of reviews and ratings to enhance the value of UGCs Besides, E-Commerce exchange can also work with shops to filter bad reviews and ratings together (use vulgar words, lack of culture, Unauthorized advertising, Review content unrelated to products, services need comment) by the shop will report the review and rating not quality to exchange and E-Commerce will have certain incentives for the shop 5.2 UGC Marketing in Other platforms • Increasing staff: Shopify is already a global platform and is used by users all over the world Therefore, the number of customers requesting support from the Shopify team is very large, leading to information congestion in the transmission line or a situation where the staff cannot support the customers immediately • Design more different apps or platforms to better suit the needs of businesses and consumers • Adding some features of UGC such as allowing customers to know each other's emails to increase credibility, and allowing customers to upload videos for review on their website • Shopify should launch an application that can interact with passive customers to increase revenue for the business 42 CONCLUSION It can be seen that over time, factors such as education, economy, science, and information technology have greatly influenced commercial activities, turning i EC i i d db i i di bl f customers to increase revenue for the business 42 CONCLUSION It can be seen that over time, factors such as education, economy, science, and information technology have greatly influenced commercial activities, turning commerce into E-Commerce as it is today and becoming an indispensable part of human life However, for E-Commerce to explode globally, it requires a great deal of support from marketing to better understand customers and also promote products widely One of the most effective and popular marketing tools today is user-generated content marketing User-generated content helps businesses save money and is times more effective than other marketing tools because this content is created not by the business Besides, user-generated content shortens the barrier between customers and businesses, building solid trust However, businesses need to consider before applying this type of content to their products, and platforms also need tools or policies to support or limit the content to build such an E-Commerce trustworthy 43 REFERENCES abit (2022) Retrieved from https://blog.abit.vn/ Beveridge, C (2022) hootsuite Retrieved from hootsuite: 43 REFERENCES abit (2022) Retrieved from https://blog.abit.vn/ Beveridge, C (2022) hootsuite Retrieved from hootsuite: https://blog.hootsuite.com/user-generated-content-ugc/ Brid (2021) Retrieved from https://www.brid.tv/advantages-and-disadvantagesof-user-generated-content/ Đỗ, H (2020) Retrieved from lafactoriaweb: 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