How to Help Your Clients Maximize the Halo Effect

BY Kathy Crosett
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Have you heard about the halo effect? Simply put, when you like one aspect about a person or business, you tend to approve of everything else about that person or business. The good news is your clients can work the halo effect to their benefit. Once they win customer trust in one retail channel, those good feelings carry into other channels and result in higher sales.

Unfounded Omnichannel Fears

If your clients are worried about the complexities of omnichannel retailing, the latest research from the International Council of Shopping Centers should put them at ease. The ICSC checked out how well retailers with omnichannel capabilities are doing. They also studied how consumer preference for digital shopping or traditional store shopping can impact the bottom line.

Retailers often hesitate to open an online store because they fear doing so will cannibalize their in-​store traffic and revenue. That’s not the case, ICSC research shows. About 17% of all consumers call themselves fully omnichannel. While that number doesn’t sound high, these shoppers make 34% of all retail purchases.

Positive Experiences Lead to Higher Sales Across All Channels

Consumers might opt to purchase items from a traditional store, have a great experience and then visit the company’s website and buy something else. The reverse is also true. ICSC analysts believe the most important aspect of these interactions is the impact of positive experience. When a retailer impresses a customer in one channel, they have a good chance of getting more revenue from the same customer in another channel.

Analysts took their research one step further and calculated the average value and timing of the halo effect. After an initial $100 purchase at a store, consumers will spend another $250 at the company’s website within five days. And after a consumer purchases an item online, they’ll make 2.1 more purchases at a physical store operated by the same company within 15 days.

The biggest challenge your clients may face is raising brand awareness to the level that convinces consumers to give them a try. An ad campaign that reaches them through traditional and digital formats may have the biggest impact. Review the many profiles available in AudienceSCAN at AdMall from SalesFuel. Then pitch your clients on a campaign that will connect with lucrative omnichannel and other shoppers.