We already know the typical customer journey is anything but linear. Shoppers spend most of their time on the wild ride we call the Messy Middle. From trigger to purchase, they’re often caught in a repetitive loop-the-loop of exploring and evaluating their options, before finally feeling confident enough to decide what to buy.
But in the age of AI, new behavioural science research reveals how brands and retailers can help shoppers smoothly navigate these twists and turns with ease and certainty — thanks to the power of first-party data. Here’s how brands can empower customers, boost relevance and build incremental preference, all while prioritising rising expectations for privacy.
Beyond behavioural biases: The power of customer data
In a world of almost limitless product choice and online information, behavioural science has helped us further unravel the age-old mystery of how people decide what to buy. Our original Messy Middle findings proved that brands applying behavioural science principles — like social proof, authority bias or category heuristics — could guide consumers to make more confident purchase decisions. Further, more recent research proved they could be as powerful as a discount.
But how does this change with the rise of AI-powered marketing and privacy-preserving technologies? In our latest wave of Messy Middle research, we investigated how collecting and using consented data could help customers and brands alike. We found that layering first-party data on top of behavioural biases could lead up to 43% of people to switch their brand preference from their stated first-choice brand to an invented brand better suited to their individual needs.1
Behavioural Science principles
Let’s unpack that. We’ve already seen AI-powered marketing campaigns deliver unprecedented results in helping customers find exactly what they’re looking for, but these exceptional outcomes are only possible with a comprehensive first-party data strategy. In fact, BCG’s global digital marketing maturity survey has shown that companies that link all their first-party data sources can generate double the incremental revenue from a single ad placement, communication or outreach.2
Going beyond behavioural biases alone, we set out to understand the incremental impact of ads with helpful messaging shaped by first-party data. In collaboration with global behavioural science consultancy, The Behavioural Architects, we conducted a simulation that looked at consumer purchase decision-making across five categories: flights, car insurance, running shoes, smartphones and bank accounts.
This time, before people took part in the experiment, we asked them a number of questions about who they are, specifically what they’re shopping for, their brand preferences and past interaction with different brands in the category.
With their consent, we then used respondents’ personal answers to tailor messaging they saw in the simulation, which tested offers from their first-choice brand against offers from a brand that we invented in a side-by-side comparison.
Let’s take the flight category for example. When it came to the ads participants saw from their first-choice airline, we applied category heuristics to the messaging at random. Whereas for the invented challenger brand, “Opal Air,” we applied all the signals, including the specific category heuristic, our respondents said they cared about — like “in-flight food or drink available” or “includes airport lounge access”.
First party data in creative messaging
The combined impact of all these signals? We were able to help participants make the right choice for their unique needs based on the messaging provided. Across categories, a quarter of respondents selected the imaginary challenger brand over their original first-choice brand.3
If even fictional brands can aid customers’ decision making and win a significant share of preference, yours can too. The not-so-messy formula for success? Supercharge your proposition with insights from both behavioural science and highly relevant messaging based on your first-party data.
Strike the right balance: Relevance is key
Activating your first-party data is a delicate balancing act. Research shows that while Australians are comfortable with sharing data to have a more tailored experience, brands should tread carefully to not overstep their bounds.4
This means that brands should prioritise creating a sense of relevance. For example, highly-relevant messaging could speak to the product features that match the customer’s shopping mission. This creates more value than using the shopper’s name or acknowledging their birthday in brands’ marketing messaging or promotions.
This is great news for marketers because Google AI tools can help generate even more relevant ads. Combined with a solid first-party data strategy, you can offer your customers something valuable in return.
To collect consented data, you could launch a form on your website, develop a quiz to help them choose the best product to suit their needs, or create a loyalty programme to reward them while getting to know their preferences with purchases over time. Then, consider ways to show the right offering to the right customer through AI-powered tools like Performance Max with New Customer Acquisition.
Ready to take your first-party data for a spin on the relevance roller coaster? Fasten your seatbelts, it's time to put consented data into action. Create tailored experiences that protect customer privacy, help you be chosen more often, and capture more share from other brands. Whoosh!
