The Power of the “Halo Effect”: How It Can Benefit Your Brand

You may not have noticed it happening to you, but it's true- when you have a positive impression of something about a brand, it tends to color your perception of everything else about it. This is known as the "halo effect," and it can be an exceptionally potent tool for small business owners looking to create a strong brand identity.

Let's dig a little deeper into what the halo effect is and what you can do to use it to your own brand's advantage.

What is the halo effect?

The "halo effect" is a positive bias toward a brand. The halo effect causes people to see a person or brand in a positive light based on a single positive characteristic or experience. It’s like a halo over the brand’s head that consumers use as a shortcut for making decisions about that brand.

A classic example of the halo effect is that people assume that a brand possesses many positive qualities based on only one strongly positive quality. For example: let's say your brand has the most beautiful, high quality packaging. Shoppers may be more likely to assume your product also contains higher-end ingredients, or is more popular, than similar competing brands- even if that isn't true.

Another example of the halo effect: if someone loves their Apple iPhone, they may assume that every new Apple product that comes out is top-of-the-line simply because they’ve had such a positive experience with the iPhone. This can help a company successfully launch multiple product lines. Many big brands benefit from this effect.

How to you create a positive halo effect for your own brand?

Big brands- including Apple, Nike, and Starbucks- are all generating millions of dollars a year from the halo effect... but they have millions of dollars a year to spend on advertising, perks and loyalty programs. So what can a smaller business with a smaller budget do to achieve a halo effect surrounding their business?

1. Start by choosing a specific aspect of your business that you believe is strong and want to highlight- this could be an innovative product feature, a brand value (such as being eco-friendly), or your excellent customer service.

2. Develop a messaging strategy to highlight that attribute. How can you let people know about this strength to get them started thinking good things about your brand?

3. Consider paying for endorsements by celebrities and influencers. People assume Nike shoes are superior quality because Tiger Woods and Serena Williams wear them on the court. Now it's time for people to assume good things about your brand because their favorite TikTok-er raved about your eco-friendly products online.

4. Consistently hold up your end of the bargain. If you want to be known for superior customer service, for example, and you highlight that fact in your marketing materials, then you must ensure that your employees are well-trained in customer service and be staffed to always be responsive to customer complaints and concerns.

A word of advice: it takes time.

Be patient. Building a halo effect isn’t something that can be done overnight. It requires a consistent effort to build familiarity, trust, and positive associations with your brand. Remember that the halo effect is based on perceptions, so it's important to focus on creating a positive experience for your customers at every touchpoint. Over time, a positive halo effect around your brand will begin to develop and you can reap the rewards.

Need to build a better brand marketing strategy? Contact info@haloeffectmarketing.com today and ask for your free consultation.