Why User Generated Content Works (And The Stats to Prove It)

3 min read

Forget billboards or big-budget ads—your next big marketing win might already be sitting in someone’s camera roll, just waiting to be shared.

Maybe it’s a happy customer showing off their weekend brunch, an unboxing video with a genuine reaction, or a five-star review paired with a glowing selfie. These real moments, created by real people, are exactly what today’s audiences connect with. That’s the power of user-generated content (UGC)—content you didn’t have to plan, script, or stage.

So what exactly counts as UGC, and why is it so effective? 

Let’s break it down.

 

What is User-Generated Content (UGC)?

User-generated content (UGC) includes any content your customers create and share about your brand, such as:

  • Photos featuring your product or service
  • Videos (like unboxings, tutorials, reviews or testimonials)
  • Online reviews or ratings
  • Social media posts and captions
  • Stories, reels, or TikToks tagging your brand

UGC is like modern word-of-mouth: it builds trust, gets people talking, and helps your brand reach more people—without the "ad" feel.

These posts aren’t just casual shoutouts—they’re social proof in action. And in a world where people are increasingly skeptical of polished brand content, that proof goes a long way

 

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Why User-Generated Content Works (And the Stats to Prove It)

It’s one thing to say UGC is powerful—it’s another to back it up. Just look at the numbers that speak for themselves:

  • Trust drives action: 84% of customers trust peer recommendations more than brand-created content.

  • Stronger influence: UGC is 8.7x more impactful than influencer content and 6.6x more influential than branded content when it comes to purchases.

  • Higher engagement: UGC ads get 4x higher click-through rates and 50% lower cost-per-click than traditional ads.

  • Community building: Sharing UGC creates authentic, two-way conversations that turn customers into loyal advocates.

  • Authenticity wins: 6 in 10 people say UGC feels like the most authentic and trustworthy marketing out there.

Think about it—most people are more likely to trust a genuine recommendation from a friend over a polished ad. When someone sees a real person, with similar interests or needs, enjoying your product, it hits differently. That kind of authenticity is hard to manufacture—but easy to amplify when you give customers the right tools and recognition.

The key is making it just as easy for customers to share as it is for others to trust what they post. A lot of people need a little nudge—and that’s where social rewards come in.

Your biggest advocates are already out there

Make it easy (and rewarding) for them to share your story with DataCandy's Social Rewards

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Social Rewards: The Missing Link Between Loyalty and UGC

Social Rewards give customers a reason to share, tag, and promote your brand by offering something in return—like loyalty points, discounts, or exclusive perks. 

DataCandy’s social rewards feature allows you to seamlessly track and reward the social behaviors that matter most—like tags, hashtags, photo posts, reviews, and more. 

This approach changes the game. Instead of hoping fans will post, you actively encourage and incentivize them to do so. The result? More UGC, more reach, more loyalty—and a lot more social engagement.

Let’s say a customer snaps a photo of their weekend brunch at your café and tags your brand. If they know they’ll earn points for that, they’re more likely to share. Multiply that by dozens—or hundreds—of customers, and you’ve created a UGC engine that feeds your brand’s visibility and community growth.

The magic of Social Rewards include being able to: 

  • Encourage UGC creation by rewarding mentions, tags, hashtags, and shares that showcase real customer experiences

  • Boost social engagement through likes, comments, and follows, turning followers into active brand advocates

  • Drive organic reach by leveraging customers’ social networks to expand brand awareness naturally

  • Align with new shopping habits where consumers discover and purchase products directly through social platforms

  • Deepen customer relationships by acknowledging and rewarding authentic interactions, not just transactions

DataCandy makes this process automatic and trackable, your team doesn’t need to manually keep tabs or chase down content. Even better? The integration is seamless. No clunky processes or forms—just natural behavior turned into valuable marketing moments.

By integrating social rewards into loyalty programs, brands can create a vibrant ecosystem that motivates customers to share their stories—fueling growth in a way traditional loyalty can’t match.

Why implementing social rewards is a no-brainer:

  • Customers are already sharing content—they just need a reason to tag you.
  • You’re already offering rewards—why not connect those to social sharing?
  • UGC already works—why not scale it with structure and incentives?

 

The Bottom Line

The beauty of UGC is that it doesn't just promote your brand—it humanizes it. When customers see real people enjoying your products or services, it builds credibility and trust in a way polished ads can’t. UGC gives your audience something they can relate to and believe in.

Whether it’s a tagged Instagram Story, an enthusiastic review, or a heartfelt unboxing video, these moments shape how people see and connect with your brand. And the best part? These stories are already being created—you just need to recognize them and give them the spotlight they deserve.

Tools like DataCandy’s Social Rewards make it easy to track, reward, and amplify user-generated content across platforms. By integrating social rewards into your loyalty strategy, you turn every tagged post, shared video, or 5-star review into an opportunity for engagement and growth. 

 

You’ve seen the proof—now let’s make it happen.

Learn how to keep the content flowing with a little help from your loyalty program.

person taking picture of their food at a restaurant-1
Elaine Pu
Elaine is a content marketer at DataCandy. She likes thrifting, animals and photography.
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