User generated content is the cheapest way to source content and it also increases brand-consumer interaction. Every online consumer with a smart phone is a content contributor which creates a huge pool for the marketer to choose from and utilize for their digital marketing objectives. Online brands looking forward to redefining their customer experience should utilize the hidden potential of consumer dialogues.

UGC has different forms such as users answering queries of other users in discussions ,customer reviews on various marketing websites, social media interaction, user generated blogs and videos about the product experience on blogging platforms. To harness the true potential of UGC it is important to understand the true benefits of user generated content.

1.) Trusted Business Intelligence
Who else other than the intelligent consumer help in product innovation and improvement? UGC is a good source of information for product development and improvement as the buyers are themselves helping with making their loved product better.

2.) Cost Benefits
A comprehensive user generated content strategy help the organizations in reducing the costs of back office operations such as live chat support by effectively compiling answers to common customer queries. Techno savvy customers who participate actively in discussion forums provide first hand information about the product or service which instantly answers product related queries of both new and existing customers.

3.) Valuable Feedback and Enhanced Customer Engagement
Listening to the valuable feedbacks of customers is the best way to enhance customer engagement and retain customer loyalty. Providing opportunities to review, comment, share on your website allows your existing and new users to engage with like-minded individuals.

4.) Improved Brand Image
Listening and responding to customer feedbacks improves brand image and builds up customer trust that not only improves customer service but also increases the conversion rate considerably. Your loyal existing customers carry over the word of mouth publicity for your product and help in increasing the consumer base for your product.

5.) Reduced Product Return Rates
Product returns cost both retailers and manufacturers a lot of money in terms of reverse transportation and other overheads. A marketing analysis survey shows that only 5 % returns are due to defective products and the rest resulting from the unmet expectations of the consumers. Online product reviews solve this problem and help in fostering a realistic and positive image about the product.

6.) Increased SEO and Website Traffic
As the users are adding content to your website on a regular basis, the SEO exposure of the website also increases. UGC is particularly important as users use the most popular keywords for your product or service. Any product reviews that are shared by the users across the social media circles boosts up the referral traffic to your website,adding to your consumer base and possibly increasing the conversion of visitors to buyers.