American Dream Project
The Power of a Pop-Up
Temporary storefronts are popping up all over the country. In a recent survey of over 600 retailers, more than 80% of businesses that did at least one pop-up in 2019 said it was a success and more than half said they would be likely to do another. While an increase in sales is certainly a perk, it’s not always the driving force behind the decision to launch a pop-up. The power of a pop-up extends far beyond sales as the benefits of engaging with customers and creating a memorable physical experience can have a lasting impact.
Here’s a few of our top reasons to launch a pop-up shop this year.
1. Generate Buzz
Pop-up shops are new, exciting and temporary creating a sense of urgency for customers and the community to experience your brand. Using social media, in-store events and local media can help spread the word and build buzz about your business. While you’re promoting your physical pop-up, you’ll see a spike in online engagement as well.
2. Test Something New
A pop-up shop is a great way to test a new concept, market or space. Within a short period of time you’ll be able to gauge customer demand and better understand operations, profit and expenses. Know your option before going in. If your test is successful, you’ll want to know if you can stay!
3. Create a Memorable Customer Experience
For an online business, opening a pop-up shop allows physical interaction with customers who can now experience your brand. If positive, these interactions can set you apart from your competition and generate customer retention and loyalty. In a survey conducted by the International Council for Shopping Centers about new retail formats, 73% of shoppers said their experience at a pop-up shop is the determining factor in their loyalty to the business.
4. Grow Brand Awareness
Physical interactions impact the extent to which consumers are familiar your business. Pop-up shops provide an unmatched opportunity to generate brand awareness because they allow customer to see, touch and interact with your business – something that can’t be done outside of a physical space. Be selective in your pop-up shop location. Choosing a high-traffic location will impact your reach and can grow brand awareness among new audiences.
5. Seize a Low Risk Opportunity
Pop-up shops are growing in popularity because the risks are low. It’s an opportunity to test a storefront without making a large financial investment in inventory or commitment to a long-term lease. Landlords are finding ways to customize spaces for pop-up seekers and even providing fixtures and equipment that can be rented to accommodate short term tenants. The pandemic will likely increase the popularity of the pop-up trend as businesses are eager to connect with customers to stand out from online competition, but looking for a short-term, low risk opportunity to do so.