Leveraging Halo Relationships

Because customers buy meal solutions, not individual items, relationships form between products. For example, a person purchasing a turkey for Thanksgiving will also purchase stuffing, cranberry sauce, and gravy. We call this the Halo Effect. Retailers can win Thanksgiving, Black Friday, and Christmas by understanding and leveraging the different Halo relationships that appeal to different customer segments at each holiday. Increased sales and transactions are a proxy for customer satisfaction. Every increase in sales and transactions represents happy customers. By promoting a non-overlapping range of Halo driving items with large transaction penetration, retailers will increase sales by satisfying a larger group of customers. Basket sizes will also increase as customers purchase items within the Halo of the promo items, and retailers can recoup margin by keeping Halo items at regular price while only discounting the Halo driver. 

Gary Saarenvirta

Founder & CEO, Daisy Intelligence

Planning for the Peak: Holiday Season Prep