MODERN MARKETING MONTHLY ARTICLE
Count yourself lucky with a 1 or 2 percent response rate from a traditional marketing campaign. If you really want to boost that figure to the stratosphere, then try opening a pop-up shop.
The folks here at TAOW Modern Marketing know a bit about the topic. Our creation, Pop-Portland, opened July 15 in a cool old record shop smack in the middle of a happening urban neighborhood. After a few weeks, it will move to Seattle, San Francisco, Sacramento and San Jose. The temporary multi-use store features shopping, live music, parties and other attractions designed to help launch the all-new 2011 Ford Fiesta.
To help get the shop up and running, the TAOW team turned to Tacee Webb of Modern Design and Construction LLC. Webb has opened more than 70 retail stores, including about a dozen pop-ups, and she specializes in finding and building-out spaces that appeal to the hip youth market. She said there are many reasons why temporary shops are effective tools for businesses.
“First, it’s really like market research in action,” Webb said. “It’s a chance to try before you buy – without a lot of overhead.”
Businesses research where their target market hangs out, open a store in a matter of days (TAOW got Pop-Portland ready to go in eight days), and then test various products and concepts to see if they fly. It’s like taking the pulse of the consumer. The results can help determine if a business is ready to launch something new or if more refinements are in order. Testing also can help decide if a particular location might work for a permanent store.
Pop-up shops also are great tools for building brand awareness.
“A lot of people want to be associated with something that’s interesting and experimental and different,” Webb said. “Pop-ups create a certain mystique and a certain kind of buzz you can only get from something that is only available on a limited basis.”
Cost is another key selling point. It’s possible to temporarily lease prime retail space for little or no money. Because landlords are eager to avoid prolonged vacancies, they’ll often accept improvements to the property in lieu of rent. Likewise, landlords often are inclined to accept pop-up shops between permanent tenants just to keep foot traffic bustling.
So how effective are pop-up shops? Megan Bassett, Mobile Marketing Director at TAOW, said a normal response rate for a marketing campaign might be one percent. That is, one percent of targeted consumers sign up to receive more information or product offers.
By contrast, a recent TAOW pop-up program saw the consumer return rate skyrocket to an astounding 17 percent. Bassett said the secret is simple.
“By putting your pop-up in the right location and creating the right experience, you’re able to pinpoint the demographic you’re trying to reach,” Bassett said. “Conversations with consumers are longer and more worthwhile, and you’re creating an atmosphere for success.”