The value of consumer co-creation in 2022
Ever thought about how you as a marketer or brand can utilize your audience to create content for you? Frog (part of Capgemini Invent) consultant for brand and content, Eleanor Huggins, provides three takeaways for brands looking to make the most out of their exisiting communities.
Capgemini provides a glimpse at how brands can get smarter at using their communities to create content
With the world adapting to a new way of living, companies are having to consider the long-standing changes in consumer behavior. There has been an increase in digital adoption, and since the lift of lockdowns, an uplift in money spent on products and services. This, coupled with the announcement that Google will stop supporting third-party cookies, has meant that consumers have more control over their purchase decisions, and brands subsequently have less control over personalizing their approach and engaging with their consumers.
Brands will need to look outward and lead with innovation to rejuvenate existing media and marketing tactics, and create a new choice-driven marketing approach. Brands should embrace an ongoing value exchange with consumers, which is best achieved through co-creation. Here are three ways that brands can co-create in 2022:
1. Use your online community to co-create value
Brands have had to rethink their digital strategy following the 30% post-pandemic increase of online presence as a way to maintain engagement. This trend will continue in 2022, and brands need to ensure they interact meaningfully with consumers. Although online communities may not traditionally be viewed as an innovative marketing strategy, 77% of people said the most important social group they are part of now operates online. Brands need to consider this as a key channel to engage and excite consumers.
GiffGaff has championed the power of online communities since its launch in 2009, restoring power to its consumers and creating a truly personal space for them to interact with the brand, with the added benefit of decreased operational costs and free market research. With 50% of consumer acquisition being attributed to member-to-member interaction and 98% consumer satisfaction, GiffGaff’s approach has resulted in its industry-leading net promoter score.
Brands can organically grow a community of consumers and provide an authentic and personalized brand experience. These interactions can be used to co-create value and innovation through identifying unmet needs and emerging trends, which can lead to new and innovative products. The influence of online communities is growing, and brands should utilize this space to effectively create value, while maintaining engagement.
2. Leverage the power of augmented reality (AR) to enhance social media campaigns
As we move toward a hybrid way of living, brands need to create new touchpoints to meet their customers. They need to learn how to connect and engage with consumers through digital and physical experiential touchpoints and compelling innovation. New and innovative channels such as social media AR can enable and encourage social engagement and sharing, allowing brands to co-create value with their consumers and drive innovation.
Snapchat expanded its shopping options to allow consumers to try clothes on virtually before buying, driving 94% more purchase conversion rate. Product experience lenses, such as this, drive 45% more purchase intent than traditional formats, so brands can use these capabilities to provide innovative experiences across new touchpoints. Gucci adopted AR with its virtual shoe try-on initiative that meant consumers could digitially try its latest collection. It helped to boost sales and encourage shares between Snapchat users, who took photos of themselves through the built-in photo feature. Brands can go one step further and utilize Snapchat’s Snap Pixel functionality to retarget consumers based on the lenses they have previously interacted with, which in turn will drive further value to the consumer and brand.
3. Incentivize high-quality UGC
User-generated content (UGC) has been traditionally defined as collateral that consumers create themselves without brand interference. It is a widely regarded effective means of marketing, with 92% of consumers trusting UGC more than traditional advertising models.
UGC provides a key opportunity for brands to co-create value with their consumers. Brands should invest in incentivizing high-quality UGC that prioritizes compelling and innovative brand storytelling. Incentivizing consumers to produce high-quality content encourages meaningful interactions and can boost engagement among a wider audience. Starbucks’s #RedCupContest initiative is an example of a brand incentivizing consumers to create content in exchange for a reward. This elevated both sales and brand engagement, with the added cost efficiency of free social content. UGC allows brands and consumers to tell compelling stories through social sharing and improves intent to purchase and conversion.
Learn to co-create value with your audience
To maximize opportunity in 2022, brands should move away from relying on traditional methods of personalization and understand how to drive value through co-creation with consumers. Growing a successful online community will create an engaged audience that can be utilized for co-creating future products and services. Expanding your social capability and creating a clear data value exchange between consumers will build meaningful relationships and make them more invested in your services. Invest in UGC by incentivizing high-quality content from consumers that tells the brand’s story. Brands can utilize their consumers to grow their brand and ultimately drive innovation through these methods of co-creation.
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frog is a leading global creative consultancy, part of Capgemini Invent. Partnering with passionate leaders and visionary entrepreneurs, we apply creativity, strategy, design and data to re-invent businesses, drive growth and orchestrate customer centric transformation.Find out more