UGC marketing strategy has evolved from a nice-to-have to a must-have for eCommerce brands. Today’s consumers don’t just purchase items; they buy experiences validated by real people. Customers want to see others using, loving, and recommending your brand’s products before they add to cart.
Research continues to show that user-generated content (UGC) drives higher engagement, stronger trust, and better conversion rates than brand-created content. In fact, shoppers who engage with UGC reviews convert 144% more often and generate 162% higher revenue per visitor. The rapidly growing UGC market is projected to reach $27 billion by 2029.

At Blue Wheel, we view user-generated content as a key driver of performance across paid social, marketplace, email & SMS, and DTC strategies. When activated strategically, UGC becomes one of the most cost-efficient, high-impact tools a brand can deploy across the entire funnel.
What Is User-Generated Content?
UGC refers to any photos, videos, reviews, or testimonials created by real customers (not hired talent, cast creators, or brand production teams). It’s the digital form of word-of-mouth: authentic, unfiltered, and rooted in genuine customer experience.
User-generated content is spontaneous and authentic, which is why it feels so trustworthy. Think of a shopper who posts a story wearing your new sunglasses or writes a heartfelt review after using your skincare line.
Whether it’s a TikTok unboxing, an Instagram product review, or a YouTube tutorial, UGC builds social proof and shows potential buyers that people just like them use and love your products.
UGC as a Scalable Content Engine
User-generated content builds credibility and emotional connection. Think of it as a flexible content engine that fuels your entire marketing ecosystem.
You can source authentic customer content organically, then amplify it across your paid campaigns, website, or emails. UGC becomes a steady supply of fresh creative assets that can refresh performance campaigns and extend the life of your media.
UGC scales authenticity. It provides paid and organic teams with a consistent stream of relatable, high-performing content that audiences trust more than polished ads. For example, you could repost UGC on social media, feature it in ads and on the DTC site, or include it in loyalty or email marketing campaigns.
We’ll now examine how UGC can be strategically mapped across every stage of the eCommerce funnel, from initial interest to lasting loyalty.
Awareness: Build Credibility and Reach New Audiences
At the top of the funnel, your goal is simple: get noticed and build trust fast. UGC excels here because it feels organic, relatable, and native to the platforms people spend the most time on, especially TikTok, Instagram, and YouTube.
Best UGC types for the Awareness stage:
- Lifestyle or 'day in the life' videos from customers
- Product demos or unboxing clips
- 'First impression' videos that highlight real reactions
How to use it:
- Integrate UGC clips into paid social or display ads
- Repost customer videos and images on your brand’s social channels
- Feature authentic visuals on landing pages
For example, a beauty brand could highlight real customer unboxing videos or product demos to build awareness and inspire curiosity among new audiences.
Consideration: Educate and Build Confidence
Once consumers know your brand, the next step is proving your value. Mid-funnel UGC bridges the gap between curiosity and confidence by demonstrating real-life use and authentic product results.
Best UGC types for the Consideration stage:
- Tutorials, 'how-to' videos, or testimonials
- Side-by-side comparisons or reviews
- Educational creator content that feels informative, not salesy
How to use it:
- Add testimonial or tutorial videos to product pages
- Use customer content in retargeting or email campaigns
- Include UGC clips in 'how it works' sections or explainer ads
If you’re a beauty or skincare brand, consider featuring customer-led tutorials that demonstrate product routines and results, providing shoppers with the proof they need to add products to their cart.
Conversion: Inspire Purchases with Authentic Proof
At the bottom of the funnel, authenticity drives action. Prospective buyers want reassurance that real people have purchased and loved your product. UGC eliminates hesitation by showcasing social proof and real-world results.
Best UGC types for the Conversion stage:
- Customer testimonials or 'why I bought this' stories
- Before-and-after transformations or satisfaction recaps
- Shopper reaction or results videos showing real outcomes
How to use it:
- Feature UGC in retargeting and high-intent ads
- Integrate testimonial clips near the checkout process
- Use UGC in email or SMS campaigns with special offers
A food or beverage brand might use real customer reviews in short TikTok or Reels ads to validate taste, quality, and convenience right before purchase.
Loyalty: Turn Customers into Brand Advocates
Post-purchase UGC keeps the flywheel spinning. When you encourage customers to share their experiences, you create a loop of authentic content that fuels both retention and discovery.
Best UGC types for the Loyalty stage:
- Customer spotlight posts or stories
- Branded hashtag campaigns or community challenges
- 'Thank you' posts or loyalty rewards features
How to use it:
- Repost customer stories across social channels
- Feature UGC in post-purchase or loyalty emails
- Incentivize new UGC creation through rewards or giveaways
For example, a fitness brand could run a branded hashtag challenge encouraging customers to share their progress, turning existing buyers into ongoing advocates.
Final Thoughts
When brands treat UGC as a connected ecosystem, it becomes a performance engine that compounds over time. Each stage of the funnel feeds the next, creating a continuous cycle of discovery, trust, and loyalty powered by real people.
The demand for authenticity is transforming the content landscape, as consumers increasingly disregard highly polished advertising. Align UGC with awareness, consideration, conversion, and loyalty to transform your customer voices into conversion assets that drive measurable growth.
At Blue Wheel, we help brands harness UGC across social, paid, marketplace, DTC, email & SMS, and more to boost visibility, engagement, and ROI. Get in touch with us to start building your full-funnel UGC marketing strategy today.
FAQs
What is User-Generated Content (UGC)?
UGC refers to any photos, videos, reviews, or testimonials created by real customers. It is the digital form of word-of-mouth: authentic, unfiltered, and rooted in genuine customer experience.
How does UGC fit into the Awareness stage of the funnel?
At the Awareness stage, UGC is used to build credibility and reach new audiences because it feels organic and native to platforms like TikTok and Instagram. Best UGC types include lifestyle videos, product demos, unboxing clips, and 'first impression' videos.
What types of UGC are best for the Consideration stage?
For the Consideration stage, UGC should educate and build confidence. Recommended types include tutorials, 'how-to' videos, testimonials, side-by-side comparisons, and educational creator content that demonstrates real-life use and authentic product results.
How is UGC used in the Conversion stage?
UGC at the Conversion stage inspires purchases by providing authentic proof and eliminating hesitation. Use customer testimonials, 'why I bought this' stories, before-and-after transformations, and shopper reaction videos in retargeting ads or near the checkout process.
How does UGC support customer Loyalty?
Post-purchase UGC keeps the flywheel spinning by turning customers into brand advocates. You can use customer spotlight posts, branded hashtag campaigns, or 'thank you' posts and incentivize new UGC creation through rewards to fuel both retention and discovery.






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