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Why Pop-Ups Are a Great Growth Strategy – Retail For The People

Why Pop-Ups Are a Great Growth Strategy

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Pop-ups are a great growth strategy because they are a fun, creative way for brands to connect with customers, sell products, and explore store locations. Did you know, despite living in an increasingly digital world, 80% of all shopping still occurs in physical stores

Below, we’ve outlined 10 reasons why pop-up shops are a great solution to help brands grow.

1. Build awareness

Pop-up shops are a wonderful way for brands of all sizes to introduce consumers to their brand story and build brand awareness. The exclusivity of pop-ups can help push brand awareness, as well. If a potential customer notices that a pop-up is set up for a limited time only, that person is generally more likely to visit the store out of curiosity and FOMO (fear of missing out.)

Pop-up shops give retailers the opportunity to introduce their brand to both new and existing markets which may or may not be their typical target. If a brand is interested in expanding its target market to a certain group of consumers they don’t already reach, having a pop-up at a location that the group frequents is an excellent way to test. If the pop-up is successful, we've just identified a new location with customers who are receptive to our brand.

2. Improves social media engagement

Creative pop-ups can easily generate buzz through social media. Making a business’s pop-up “Instagrammable” is a great way to generate new customers. When people see fun new retail spots online, they will often check them out on their own. Brands can also promote their pop-ups through their social media channels by partnering with local influencers who can attract the attention of other accounts.

3. Test-run a physical store

Omni-channel is the "new normal" and pop-ups are a great way for online retailers to test the waters of brick-and-mortar retail without committing to a long-term lease and all the expenses that go along with it. The majority of retail business still happens in brick-and-mortar stores, so physical locations are a great option for DTC and online brands to consider. Undertaking a storefront on a smaller scale helps brands explore the possibilities of physical retail.

4. Test a specific market location

Pop-ups are also a great opportunity to test how a business performs in different areas. If a brand is thinking about opening a store in a new city, first hosting a pop-up can help them see if their business has a large consumer base in the area. This allows them to determine if the new location is a good fit without committing to spending a lot of time or money on opening a store that doesn’t end up working out. Another great aspect of pop-ups is their mobility. A business can test a pop-up in one location, and once they close that location, it can immediately move the pop-up to another to test the consumer's response. This gives retailers the perfect way to find their ideal market.

5. Test products

If a brand wants to test run a new product, doing so at a pop-up is a great option. The retailer can see how the product sells without ordering a large amount of inventory to stock in all of its locations. If the product does well, the retailer can use that information to consider stocking it in other stores and/or online. If the product doesn’t perform, the retailer can move on and be glad they didn’t invest more in a product that would have been unsuccessful.

6. Gain real consumer insights 

The power of pop-ups is they provide feedback from customers in real-time. This data is valuable because it can help inform future product decisions. 

Many online retailers are finding that the main reason customers don’t want to buy their products is that they want the opportunity to try on or feel the products before purchasing them. Returns are often a hassle, and customers don’t want to end up needing to return items. Pop-ups can remedy this situation. By creating a store where prospective customers have the chance to see the products before purchasing, businesses can turn these prospective customers into purchasers who will continue to shop with them online long after the pop-up has closed its doors. 

7. Create a buzz around your brand

By hosting a pop-up, brands are able to create a sense of urgency due to the pop-up’s temporary nature. People in the area will want to check out the space before it’s gone forever. A great way to help generate buzz is by making the pop-up “Instagrammable” - any pop-up that is visually appealing is likely to make social media appearances, which is a great way to not only engage with current customers but reach people who might not have found the pop-up without social media.

8. Find out who are your real customers 

Pop-ups can help brands determine exactly who their customers are. Creating an incredible experience for pop-up shop customers is a way to create lifelong customers who will shop with a brand long after the pop-up closes.

When applied to retail, the Pareto principle means that as little as 20% of a business’s customers will account for 80% of that brand’s sales, and an analysis done by FiveStars reported that only those 20% of a brand has shopped 10 times or more.

Pop-ups are a memorable experience that, when done right, will allow a brand to secure those real, loyal customers who will support the brand for years to come.

9. Build real relationships with customers in real life

Pop-ups provide the chance for retailers to connect with customers in person. This is an incredibly important way to build trust with customers. Having multiple pop-ups in different cities would enable the business to engage with customers all across the county. Businesses can host events in their pop-up space that would allow them to strengthen their community and relationships with real-life customers. 

10. Sell products!

The sense of urgency that comes with a temporary pop-up also means customers are more likely to purchase items right away rather than waiting to do so at a later time. Pop-ups are especially effective during the holidays when everyone is shopping more.

The versatility of pop-up shops means that any brand can open its own pop-up. Consider partnering with another brand to help share the expenses and to help build a bigger buzz. 

Pop-ups are a useful and creative marketing and sales tool, and they are the perfect way to create an experience your customers will remember.

If you’re interested in learning how RFTP can help you launch your own pop-up shop, click here to learn more about our store opening services and here to schedule a free consultation.


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