Key Takeaways
- Marketers expect to allocate up to 50% of their budgets to experiential over the next three to five years, and pop-up shops are one of the most popular tactics.
- Pop-ups solve real business problems: seasonal or limited access to prime real estate, the need for ongoing personalized engagement, and product differentiation.
- It takes an average of 4.7 touchpoints before a consumer decides to purchase from a brand, and pop-ups can kickstart that relationship in a memorable way.
- Brands like Nike use pop-ups to create a destination people want to visit regardless of what's for sale, turning the space itself into a differentiator.
- A pop-up works best as the start of an ongoing engagement strategy, not a standalone stunt: follow up with email, social, and other touchpoints after the event.
Quick Links
- When Your Industry Is Seasonal or You Lack Year-Round Access to a Prime Location
- When You're Struggling to Deliver Meaningful, Ongoing Engagement
- When Your Product Is Nearly Identical to Competitors
- Why Pop-Ups Work
- People Also Ask
- Frequently Asked Questions
Each year, brands are allotting more of their marketing budgets toward brand activation. In fact, a study recently found that a growing number of marketers expect to allocate up to 50% of their marketing budgets to experiential over the next three to five years.
These data-driven decisions demonstrate that brands and agencies alike see the dramatic impact that in-person interactions offer.
One of the most popular experiential tactics of the moment is the pop-up shop. From beauty brands to food and beverage to apparel, brands in all categories are entering the pop-up sphere to reach their marketing goals. It's a favorite among larger brands, and offers a vast number of variations in terms of both size and scope. Pop-ups can be a small activation that lasts one weekend or a museum-style experience that lasts several months. They can occupy entire retail spaces, lofts, street carts, or even exist within another retail store. They're effective for brands of all types with different approaches and goals.
Pop-ups can also serve as a solution for a variety of business challenges. They're often used to overcome hurdles that are inherent to a sector or to the general marketplace. If you see your own company facing any of the common problems listed below, a pop-up shop could be the answer.
When Your Industry Is Seasonal or You Lack Year-Round Access to a Prime Location
When it comes to real estate, we all know the adage: location, location, location. Many brands are challenged when it comes to allocating budget for the ideal place to reach a large number of their ideal consumers. Prime commercial real estate can be extremely hard to come by, which is why a pop-up shop can be a great solution for connecting with an audience in high-traffic locations.
For example, online fashion brand ModCloth didn't want to make a massive investment into a permanent location. So they decided to launch a pop-up shop. This temporary "Fit Shop" gave them the increased exposure and boost in sales they were looking for without the commitment associated with signing a lease.
Some businesses don't have the luxury of selling a product or service that people use every day. This is clear to anyone who's seen a holiday pop-up just in time for Halloween, Christmas, or any other holiday. For a business like backpack maker JanSport, for example, a year-round brick-and-mortar footprint may not make sense given dramatic peaks and lulls in sales. But a 1-2 month-long pop-up near retail and residential locations surrounding the back-to-school season makes sense.
Q: Why do seasonal businesses benefit more from a pop-up than a permanent store?
A: A pop-up lets a seasonal brand capture peak demand in a high-traffic location without the year-round lease and overhead a permanent storefront would require during slower months.
When You're Struggling to Deliver Meaningful, Ongoing Engagement
In today's world of user-centric content and product delivery, brands have to treat the consumer like an individual. Nothing frustrates modern shoppers more than being blindly sold to. They also need more "romance" in a brand relationship. In fact, the data shows that it takes an average of 4.7 touchpoints (interactions between a business and its consumer) before someone decides to purchase from a brand. As a result, your company may be concerned that you're not engaging with your audience often enough, or you may want to increase the intimacy between your brand and audience. Like all things experiential, pop-up shops thrive at delivering meaningful, personal interactions with consumers. And this interaction doesn't have to exist in a vacuum; it can impact both short- and long-term consumer behavior.
Experiential tactics can aid brands in this courtship in two ways. First, brand activation gives companies the most value for their money as it relates to consumer engagement, since experiences are often designed to increase brand awareness and drive revenue all at once. Second, they let the brand design a series of subsequent touchpoints to set up personalized, meaningful interactions with each consumer. The pop-up shop is just the beginning: it kickstarts the brand-consumer relationship, and is then followed with post-event engagement, such as an email offer coupled with social media contests or campaigns. Your pop-up is the catalyst for an ongoing consumer engagement strategy that nurtures each attendee toward becoming a customer.
When Your Product Is Nearly Identical to Competitors
While every company wants to differentiate itself from the competition, it's easier for some brands than others. If your company is selling designer clothing, you have a unique point of view that's clear to shoppers. If your company is selling internet service, your ability to differentiate from the competition is more limited. Stellar service will certainly give you some traction, but it can be hard for that to translate before someone becomes a customer. Enter experiential. Take a lesson from brands like Nike, which embrace experiential as an opportunity to stand out in the eyes of consumers. Like Nike, make your pop-up a destination people want to visit, regardless of the actual items or service you want to sell.
When designing your experience, remember that your pop-up is a place to elevate your brand. You have the opportunity to differentiate by demonstrating your culture, mission, and the "why" behind what you do. Tell them about the causes you're passionate about, which will go a long way in the minds of consumers, who are increasingly looking for brands with a purpose. Think of your pop-up shop as an opportunity, and design it carefully.
Q: How can a commodity brand differentiate itself with a pop-up?
A: Focus the experience on your culture, mission, and purpose rather than the product itself. When a service is hard to differentiate on features alone, a pop-up gives you a chance to make an emotional case instead.
Why Pop-Ups Work
There's no doubt that the popularity of pop-ups shows that they're an effective marketing tool. And while many brands see elaborate, showy pop-ups more as a stunt, the truth is, pop-ups can be a practical way to combat age-old dilemmas, including those listed above. By looking at pop-ups through a lens that doesn't just include brand awareness, you can address issues like seasonality, sales, and more, all while providing a memorable brand experience.
Thinking through a pop-up for your own brand? Contact us and let's design one that solves a real business problem, not just a photo op.
People Also Ask
What business problems can a pop-up shop solve?
Pop-ups address seasonality and limited access to prime real estate, a lack of ongoing personalized consumer engagement, and the challenge of differentiating from competitors with a similar product or service.
Why are pop-up shops effective for seasonal businesses?
They let a brand show up in a high-traffic location only when demand is highest, avoiding the cost of a year-round lease for a business with dramatic peaks and lulls in sales.
How many touchpoints does it take before a consumer buys from a brand?
On average, 4.7 touchpoints, which is why a pop-up works best as the start of an ongoing relationship, followed by email, social, or other engagement rather than a single standalone event.
How can a pop-up help a brand stand out from competitors?
By making the experience itself the differentiator, brands like Nike design pop-ups as destinations people want to visit regardless of what's for sale, showcasing culture and mission instead of just product features.
Frequently Asked Questions
What is a pop-up shop?
A pop-up shop is a temporary retail or brand experience, ranging from a single weekend activation to a months-long installation, used to reach consumers without the commitment of a permanent location.
When does a pop-up shop make sense for a brand?
It makes sense when a business is seasonal, needs better access to a high-traffic location, wants more personalized ongoing engagement with consumers, or needs to differentiate from close competitors.
How much of a marketing budget should go toward experiential tactics like pop-ups?
Industry research shows marketers expect to allocate up to 50% of their marketing budgets to experiential over the next three to five years, reflecting how much impact in-person interaction has on consumer behavior.
What should happen after a pop-up shop event ends?
The pop-up should kick off an ongoing engagement strategy, follow-up emails, social media contests, or retargeting campaigns, that nurtures attendees toward becoming repeat customers.
Who can help design a pop-up shop strategy?
A Little Bird designs experiential activations, including pop-up shops, built to solve specific business challenges, not just generate a photo moment. Contact us to talk through your goals.