If Robert Cialdini – famed psychologist and author of Influence: The Psychology of Persuasion – walked into a modern marketing department today, he might be amazed to find his insights about the human psyche being applied on a grand scale. After all, his nuanced understanding of cognitive biases forms the bedrock of today’s successful marketing strategies.
Whether the players realize it or not, buying decisions are never singularly dictated by objective evaluation alone. In the theatre of the mind, cognitive biases consistently meddle with perception, memory, reasoning, and decision-making. Good marketers skillfully play these strings to curate highly compelling campaigns – leveraging cognitive biases and subtle psychological cues all throughout the customer journey, from start to finish.
The Halo Effect usually kicks in right from the start.
What’s the Halo Effect?
The Halo Effect is one of the many cognitive biases that inform human thinking and behaviour. It is the mind taking a “mental shortcut” and forming a value judgement – about a person, a product, or a brand – based on a positive first impression. When the initial impression is so overwhelmingly positive, it becomes an indelible, often resistant to alter, even in the face of contradicting evidence.
The term ‘Halo Effect’ was introduced by Edward Thorndike in a 1920 study examining military officers’ assessments of their subordinates on varied traits. Findings demonstrated high correlations between ratings of different qualities, suggesting that our perceptions are not entirely objective. In everyday perceptions, attractiveness is a prime example. Attractive individuals are often perceived as smarter, more successful, and popular. This bias even pervades legal proceedings, as studies suggest attractive individuals tend to receive more lenient sentences for the same crimes.
However, this inherent cognitive bias permeates various domains, from management to design, copywriting, advertising, and even conversion optimization strategies. In branding and marketing strategies, it forms the backbone of customer perception and loyalty. A customer’s previous positive encounter with a brand or product could sway their preference towards other unrelated offerings from the same brand. What’s more, once the Halo Effect has been implemented, in the long term, it sets into motion other cognitive biases that work in the brand’s favour. Take for instance, confirmation bias, wherein people actively disregard information that contradicts their preconceived beliefs and focus on information that aligns with their existing beliefs.
The Apple Phenomenon
Apple Inc. is one of the prime examples of a brand that has masterfully harnessed the Halo Effect to build a global tech empire. The launch of the groundbreaking iPod set off a positive chain reaction for the company, triggering speculations about a probable rise in their Mac laptop sales as well. The Halo Effect created by the iPod provided a safety net for subsequent launches and expanded with each successful subsequent product – from the first iPhone to the Apple Watch. Now, even when a new Apple product doesn’t quite match up, the previous successes help keep the buzz and excitement going, preventing any major shift in brand perception. Despite a few missteps like the AirPower or Apple Newton, the power of the Halo Effect has allowed Apple to retain its revered status in the tech world. The interplay of the Halo Effect among Apple products demonstrates this phenomenon at its finest: the legacy of the iPod not only built a loyal customer base but also ensured a steady interest in future products.
If these were not reason enough for brands to incorporate the Halo Effect into their marketing and content strategy, here’s the kicker. Like everything else, the Halo Effect comes with a flip side – the Horns Effect.
Yes, Halo & Horn – the good old angel-devil dichotomy!
Since the first impression of a thing sets up a person’s subsequent beliefs, what this also means, as Daniel Kahneman says, is that “if the company looks inept to you, you may assume everything else they do is inept.” This means that if marketers do not actively leverage the Halo Effect to ensure that the brand’s or product’s first impression works in their favour, a small misstep can instead trigger a Horn Effect – affecting the overall image of your brand in a negative way. For example, an off-colour advertisement or unsatisfactory website UI can lead to not only one lost client but also a negative review that may impact the perception of other potential clients.
So, while the Halo Effect holds tremendous potential to augment a brand’s success, it demands strategic handling to optimize its benefits and avert potential risks. The iconic marketing saga of Classic Coke versus New Coke serves as a prime example of the delicate balance required to maintain a “halo brand.” In 1985, despite its cult status, Coca-Cola decided to rebrand by introducing a sweeter “New Coke,” aiming to edge out their closest rival, Pepsi. Despite data supporting the new formula’s preference in blind taste tests, the move caused a massive uproar since it eroded the emotional bond customers had developed with the product over the years. The point? Even the brightest halos require careful upkeep to prevent potential tarnish.
Caused a bit of anxiety, have we?
Well, let’s ease it with this handy guide to how you can capitalize on the Halo Effect.
Exploiting the Halo Effect: Advanced Marketing Strategies
- Data-Driven Personalization: Use customer data to personalize marketing efforts. Tailored experiences create positive impressions, which can bleed over into overall brand perception. This could include personalized emails, product recommendations, or targeted content.
- Co-branding Partnerships: Collaborate with a brand that already enjoys a strong Halo Effect. The positive associations of the partner brand can transfer to your brand, provided the partnership makes sense for your customers.
- Influencer Partnerships: Rather than a simple celebrity endorsement, build long-term relationships with influencers that resonate with your target audience. Influencers, given their close connection with their followers, can create a potent positive impression.
- Build a Community: Invest in building a brand community. This could be through social media, forums, or in-person events. Positive experiences within the community strengthen the reputation of your brand.
- Thought Leadership: Position your brand as a thought leader in your industry. Publish high-quality, authoritative content on relevant topics. The audience will extend perceived expertise in one area to your products or services.
- Experimentation and Testing: Continually test and optimize your marketing efforts. Use A/B testing to find what resonates best with your audience. Positive experiences with marketing materials can influence overall brand perception.
Bottomline
The Halo Effect is powerful, but it needs to be managed carefully. A single negative incident can have a ripple effect, damaging the brand’s image and it’s essential to ensure a consistently positive experience across all touchpoints. This requires considerable expertise, foresight, and a thorough understanding of the brand’s ethos, audience, and industry trends. A single negative incident or a poorly handled situation can have far-reaching repercussions, denting the brand’s halo and diminishing its shine.
This is where a seasoned marketing agency can step in. At Heltr Skeltr, we understand the intricacies of cognitive biases and their potential impact on branding and marketing strategies. Our focus is on crafting personalized, data-driven strategies, enhancing your brand image, and cultivating a lasting positive impact that resonates with your customers.
Curious to know more? Drop us a line.