Pop up shops have a lot of things going for them – or rather, the businesses behind them. That’s why even prominent brands are using them to test new ideas by creating a unique, engaging physical shopping experience.
These temporary shops are a particularly effective strategy for digitally native businesses, or eCommerce ones that got their start online. Perhaps more to the point, they generate as much as $80 billion in revenue each year, according to recent Capital One sales data. Their studies also conclude:
- 80% of retailers with pop-up shops consider them a success
- Over half of these brands plan to open another one.
- 44% of pop-up shops cost less than $5,000 to open.
- Their market value is projected to exceed $95 billion by 2025.
For smaller, growing businesses trying to attract new customers, they can be a highly effective sales and marketing tool for a whole range of products and services. But if you want to end up in the success category, it will help to understand why some of them seem to work more than others.
Incorporate a Pop Up into Your Experiential Marketing Campaign
Because a pop up involves creating and sharing experiences with customers and prospects, it can be incorporated into a broader experiential marketing campaign. The idea here is to get people to interact with your brand in an intimate, memorable way. With that in mind, some aspects of the store can be designed to allow you to create fun or engaging experiences that will create buzz.
Some ways to do this include:
Have elements of live communication and interaction
Offer classes at off hours
Hold demos with prizes or giveaways
Involve your followers on social media
Anything that allows for a more personal connection with the customer can eventually lead to increased brand loyalty.
Examples of 3 Successful Pop Up Ideas – and Why They Worked
If you’re interested in testing out a retail presence for your business, but you’re put off by the financial risk and commitment of a permanent storefront, a pop-up shop could be an effective way both to test your idea and improve on it. Explore Shopify’s tips and success stories to discover how other businesses did just that. Here’s what three of them did:
1. Create a Live Experience for Customers and Potential Clientele
An online pet shop gift store launched a pop up in Manhattan’s Soho neighborhood. Pet owners were invited to bring their dogs with them to the shop. It was a fun, engaging way for the business to test its products and gather valuable data about their clientele.
2. Run Tests to Help Find a Good Permanent Location
One retailer used pop up shops in several U.S. cities to test their concept for in-person businesses. Customers were treated to sample services and tested their products. This helped the company discover where to open its first permanent location.
3. Tie It to a Holiday or Other Special Day Through “Cause Marketing”
Penguin opened a pop up on International Women’s Day to test its concept. Young consumers in particular are drawn to products and brands tied to social issues.
When Not to Launch a Pop Up
All of that said, a lot of thought should go into any decision to launch a pop up. If the appeal of your product or service is spread thinly across many states or countries, a single, temporary storefront may not do much to further your brand. Your timing, location, budget and other considerations will help your team determine if and whether to pursue the trend.
In spite of the upsides, there are any number of signs that a pop up isn’t in the stars, at least for now:
- Budget constraints
- Lack of a promising location
- Doesn’t reach target customers
- Lack of research on neighborhoods
- Unmet licensing, zoning or inspection requirements
- Insufficient staffing
Just because it doesn’t happen right now doesn’t mean it’s not right. A well-planned shop is much more likely to deliver the ROI needed to support it.
Collaborate with Your Digital Marketing Partner for a Better Pop Up Experience
A pop up is a great way to generate buzz, test a new product line or explore a possible location for your next brick-and-mortar. Whatever the reason, a seasoned digital marketing agency will help you incorporate it into your larger strategy in a way that enables you to collect useful customer data and feedback.
At Connections Marketing, our specialists are ready to handle every aspect of your next marketing campaign. We can oversee your branding strategy in a way that will increase the success of your pop up shop. Contact us today so you’re ready to go “live” tomorrow!