If there’s one thing I’ve consistently observed while studying fast-growing startups, it’s this — people trust people more than they trust advertisements. A startup can spend lakhs on polished campaigns, celebrity collaborations, and cinematic product shoots. But sometimes, a simple Instagram story from a real customer creates more impact than an entire ad campaign. That’s the power of User-Generated Content, or UGC. UGC refers to any content created by customers rather than the brand itself. It could be reviews, testimonials, unboxing videos, tweets, LinkedIn posts, Instagram reels, YouTube shorts or even a customer casually mentioning a product in conversation online. And for startups, this kind of content is not just useful — it’s often the difference between being ignored and becoming trusted. The biggest challenge for any startup is credibility. Established brands already have recognition. People know them, see them everywhere, and assume a certain level of reliability. But ...
One thing I’ve learned while observing consumer behavior is that people don’t always buy products they can easily evaluate. In fact, some of the most successful businesses are built around products and services where customers may never fully know whether they made the “right” choice. These are called credence goods . Unlike ordinary products, credence goods are difficult — sometimes impossible — for consumers to evaluate even after purchase or consumption. The buyer has to rely heavily on trust, reputation, expertise, or credibility because they cannot accurately judge the quality themselves. And once you start noticing credence goods around you, you realize they are everywhere in daily life. Think about visiting a doctor. Most patients cannot independently verify whether the diagnosis is perfectly accurate or whether every prescribed test is necessary. They trust the doctor’s expertise. Similarly, when someone hires a financial advisor, a lawyer, or even a digital marketing consu...