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The Halo Effect


Have you ever worked for a large company that had A LOT of red tape and processes in place “to protect the brand”? These were most likely put in place by those making the long term strategic decisions for the company.

While they tend to stifle innovation, their main goal is to build upon and leverage a halo effect.

What is it?

The halo effect is a term for a consumer’s favoritism toward a line of products due to positive experiences with other products by this maker. The halo effect is correlated to brand strength, brand loyalty, and contributes to brand equity. 

The opposite of the halo effect is the horn effect.

https://www.investopedia.com/terms/h/halo-effect.asp

Take action

A rookie mistake is to drive yourself crazy trying to achieve the Halo Effect with every single customer. A better way to pursue, win and leverage the halo effect is to adapt a strategy laid out perfectly by Super Human.

If you do not have time to read the entire article, here is the short version:

Send out a survey with the following 4 questions:

1. How would you feel if you could no longer use ____?
A) Very disappointed
B) Somewhat disappointed
C) Not disappointed

2. What type of people do you think would most benefit from ____?

3. What is the main benefit you receive from ____?

4. How can we improve ____ for you?

https://firstround.com/review/how-superhuman-built-an-engine-to-find-product-market-fit/

When you receive the responses, archive every survey where the respondent did not choose option A for question #1.

From the results you have left, look at who responded. Collect their psychographic and demographic data to identify what the majority of these respondents have in common.

As a brilliant founder, you will tailor your marketing to attract more people like your 1A respondents. As someone looking to leverage the Halo Effect you should also role out any new offerings first to your 1A respondents. As your 1A respondents are already under the spell of the Halo Effect.


Read more on the topic

Google “Case Studies on Zappos, Nordstrom, and Johnson & Johnson”. There companies are champion at investing heavily in & benefiting from the halo effect include.




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