How to Leverage User Generated Content to Drive Value

There is often a misalignment between marketing and merchandising, UGC can make that better or worse

I have been looking around for a new office chair, for a few weeks, and this is one of those purchases where everything looks the same, there are thousands of options and you actually have TO WORK to find what you want.

But then, I am a marketer too, so I pay attention to nuances in images, features, etc. I know I want lumbar support, I know I want head rest support, tech neck or the smartphone slump is a real thing, and I know I want a slight reclination.

But with literally 1000’s of options, you know the market is littered with chairs that breaks 30 days into use, cheap plastics, terrible cushions that wear out, etc. My price point is somewhere below $700 for a chair and I filter out anything below $200. But then everything is the same. Or from suppliers I have never ever heard of. The proliferation of brands is astonishing. And I have a high end brand chair right now that performed a little less than what I expected it would. So I am open to looking.

So in comes user generated content. And again, as a marketer, I am looking for the UGC where a user clearly uses the product and defines features, functions and fit with clarity and authority.

This is where I start

And they are all doing the same thing - photos, videos, animations but no real people actually using the chair and describing the look and feel. And they are all doing the same thing Price Selling Price. And I HATE THAT. Because the price is never the original price or a comparison to what? It’s useless real estate.

I am not a gamer, so gaming chairs are out. Looking for a strong, comfortable office chair for the home office.

So now I open the search up and remove the floor of $200 and the wild west shows up but the one that struck me is the chair that was green - not because I want a green chair, but because everything else was black, white, brown - smart move from Home Depot to showcase a green chair that draws your attention to it.

$118 (price). Red Flag. Cheap (quality) Low price = Low quality. So of course, I am going to check it out because it’s Home Depot, a brand I know, and if I have an issue, I know how to return it (service).

value=fn(price, quality, service) = value = fn($118, low, high) = mid value because I know the service is there if I need it.

So I jump to the page and here we go…

One of the things I do not like about Home Depot is that the product details and descriptions are below a listing of 75000 other things you can buy. That’s a crap customer experience - give me what I want to know.

And then I spot it - the UGC Video.

Alex describes the chair in excrutiating detail - chair is good for people up to 6’4, weight capacity of 275lbs, removable lumbar pillow, fixed arm rests, reclining with a foot rest, arms in place to support reclination, mesh back for breathable fabric.

Overall, an excellent user generated video. In fact, a compelling video that demonstrates the quality and utility of the chair.

So what’s the problem here?

THE PRICE - it LOWERED the value perception.

value= fn (price, quality, service) =

Price = $118 - that’s a low price for a chair - period hard stop

Quality = great UGC and compelling visuals of using the chair and features - mid

Service = Home Depot has superior service - high

value = (low, mid, high) = mid

Now change that price to $299

Price = $299 - that’s a price that denotes a quality product and an upper mid range price point for an office chair - mid

value = (mid, mid, high) = mid-to-high value

What’s the story? The Price point complete destroys the user generated content and the service reputation from Home Depot for being too low. It’s too good to be true.

And this is the disconnect. Marketing knocked the ball out of the park with exceptional UGC, Home Depot has a brand reputation for service, and merchants chunked it by underpricing the chair.

This will attract cost conscious low value customers. But if the price point is $299, you can build confidence in other buyers that the chair is higher quality and higher value.

What’s the point you are trying to make Chris?

Marketing + merchandising + customer generated content = a system of delivering value to a target audience. Make sure the system is focusing on the customer audience, make sure the system is aligned, make sure the value proposition matches the pricing position. Misalignment leads to an unnecessarily low value perception.

Am I going to buy it? Hell yes. I would sink $130 for a chair just to see if it’s as good as the UGC showcased. What’s the problem then? I would have spent $299.

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