Right now, one of the hottest topics in the retail industry is the relationship between physical and digital retail experiences. The subject is under the spotlight currently due to a recent study by the ICSC, “Halo Effect II: Quantifying the Impact of Omnichannel”, which follows on from its 2018 study “The Halo Effect: How Bricks Impact Clicks”. These studies together reinforce the long-held belief that combining physical and digital experiences makes a hugely positive impact on sales figures.
While the first Halo Effect survey focused on increased brand awareness, the latest study delves into how a multi-channel approach can lead to more transactions and significantly increased spend. The research found that, following an online transaction, the average halo consumer makes 2.1 transactions in-store with the same retailer within 15 days. Likewise, following an in-store transaction, the average consumer makes 1.3 online transactions with the same retailer within 15 days.
Tom McGee, president and CEO of ICSC, commented, “What we found was that consumers take advantage of the channels available to them, and it positively impacts total sales. Simply put, consumers want a great experience whether it is online or in the store.”
This is further supported by marketing, technology, and data specialists, CACI, who have recently published their findings about the halo effect in an infographic. CACI’s study found that 80% of all purchases are still made in a physical store, and customers are increasingly looking for an omnichannel retail experience.
The Halo Effect and the Outlet Industry
Often, for the outlet retail industry, the ability to offer an online experience has been difficult, if not impossible, due to issues with stock tracking and availability. Compagnie de Phalsbourg, however are leading the change in this area, claiming to be the first digital outlet in the world.
The Village outlet in Villefontaine, France, now provides customers with an online marketplace connected in real time to stock levels, which will, as the ICSC reports suggests, help to drive spend both online and at the shopping center. Coniq is proud to be supporting Compagnie de Phalsbourg’s innovation by providing the first loyalty program for outlets that rewards shoppers for purchases made both online and in-store.
Even without taking the Halo Effect into account, the online outlet market has a predicted value of $200 billion. Forward thinking retailers such as Compagnie de Phalsbourg are setting a new standard of success for outlet centers and are likely to see a strong boost in their bottom line.
For landlords without an online sales presence, an online engagement program provided by Coniq allows them to reap the benefits of the halo effect. The ability to target consumers with offers and incentives online leads to a significant increase in spend and return rates of shoppers, which both Compagnie de Phalsbourg and our other loyalty CRM customers experience.
If you would like to learn more about Coniq’s technology and how it can help outlet and full price retailers reap the benefits of the digital market, please get in touch with us or request a demo.
