The saying that you can do well by doing good has never been truer in the retail world. Both our shops and our suppliers often benefit from the “halo effect” that helps influence consumers’ positive impression of our businesses. It’s interesting to note that the term was coined by psychologist Edward Thorndike in 1920 in a study of military officers’ evaluations of their subordinates. Thorndike discovered that one positive characteristic (in this case, physical attractiveness) influenced the overall impression that an individual gave to others. 

When it comes to businesses, the halo effect is used to describe to a cognitive bias in which a positive characteristic leads to an assumption of other positive attributes. In other words, if your store has a great reputation in your community, customers will assume that you are a running a successful business. It’s generally accepted that people like to support popular stores – this is one reason for the proliferation of influencers in today’s society.

How can you achieve the halo effect? Align yourself with your community’s buy local organization in order to be associated with that movement. Help local non-profits with generous donations of gift cards so that your name comes up frequently in conjunction with causes that are important to your customers.  Carry merchandise that gives a percentage to a non-profit.  Volunteer on boards and host events that allow you to be perceived as highly engaged in your town or city.

These are activities that are second nature to many independent retailers, and almost impossible for online giants to replicate.  Make sure that your customers – and potential customers – know what you are doing so that your halo glows brightly.

Happy Retailing,
Carol “Orange” Schroeder

Please note that there will not be a Specialty Shop Retailing blog next week