---
title: "Halo-effect"
url: "https://kb.retailsonar.com/en/article/halo-effect"
language: "en"
last_updated: "2023-03-28T11:21:53.346Z"
---

# Halo-effect

The halo effect describes the ratio between the drive times to your physical location and your total online sales.

![](https://cdn-assets.productfruits.com/08a67722-9fd4-4da1-b609-e0cbe1f36730)  
 

When we analyze the ratio between the drive time and online sales we notice a couple of things;

1.  There is a clear peak in online sales from customers living in the secondary catchment area of your physical location.
2.  The Halo effect is ambiguous:

-   **Positive impact:** when opening a physical location, your online sales will benefit from this. So more online sales around your “bricks".
    -   This is explained by brand awareness, brand presence, …
    -   *Analysis: higher share of online sales in areas around physical locations*
-   **Possible risk:** when downsizing your network, you might lose online sales in areas where you’re not represented anymore
    -   You can reduce this risk by trying to convert offline customers to online customers. This requires a good understanding of your customer profile and a clear distinction between your digital and non-digital customers

In theory, the ideal situation would be to

-   Gain online sales when opening new locations
-   While filling gaps in your physical network with your online sales channel (and thus create complementary channels)

This require appropriate marketing actions, and is in reality very hard to achieve.