Insights

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feb 16, 2025

Does UGC actually work for SaaS and AI products

UGC is usually associated with skincare and supplements. Here is why it works just as well for SaaS and AI products, and what changes about the format.

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AUTHOR

The Creator Factory
Creator Factory
UGC marketplace agency or UGC influencer

Most UGC you have scrolled past is someone unboxing a supplement or reviewing a skincare routine. If you are running a SaaS or AI product, it is reasonable to wonder whether any of that translates, or whether UGC is just a physical-product format that does not fit something people cannot hold in their hands.

It translates. The mechanism that makes UGC work has nothing to do with the product category.

Why UGC works regardless of what the product is

UGC works because it looks and feels like a real person sharing something, not a brand selling something. On a feed full of polished ads, a video that looks native to the platform gets a few extra seconds of attention before someone decides to scroll past. That attention gap is the entire value of the format, and it applies exactly as much to a piece of software as it does to a skincare product.

What actually changes for SaaS and AI products

The mechanism is the same. The execution is not.

The product is intangible, so the hook has to work harder. A skincare video can show the product on skin. A SaaS video has to show a result, a screen, or a moment of relief from a painful task, because there is no physical object to hold up to the camera.

Screen recordings become part of the format, not a departure from it. A creator reacting to a genuinely useful tool, then showing five seconds of the actual interface, blends product proof into an authentic moment rather than breaking it. This is different from a traditional glossy product demo, and it is the piece that makes UGC actually work for software rather than just producing another explainer video with a creator's face bolted on.

The persona has to match the buyer, not just look relatable. A general lifestyle creator can sell a snack. Selling a developer tool, a marketing analytics platform, or an AI writing assistant works better with a creator (or a script) that sounds like someone who actually does that job, because a software buyer can tell within seconds whether the person on screen has ever used a tool like this for real.

Why this matters more, not less, for AI products specifically

AI products carry an extra trust problem physical products do not: people are often skeptical that the tool actually does what it claims, especially with how saturated the AI product space has become. A real person showing a genuine, unscripted-feeling reaction to a tool working is one of the few formats that can cut through that skepticism, because it looks like proof rather than a claim.

What good SaaS or AI UGC actually looks like

  • A hook that names the specific, painful task the product removes, not a generic feature list

  • A short screen moment showing the actual product doing the thing, placed right after the hook while attention is highest

  • Language that sounds like a peer talking, not a feature sheet read aloud

  • A CTA suited to a software buying decision: start a free trial, not "buy now"

The honest limitation

UGC is a top-of-funnel, paid-social format. It is very good at getting someone to notice your product and start a trial. It is not a replacement for onboarding, product experience, or the parts of your funnel that turn a trial into a paying customer. If those parts are broken, UGC will get you more people trying a product that still is not converting, faster.