With pop up stores already contributing approximately £2.3 billion a year to the UK economy, it’s clear that this is a relatively new trend which is here to stay. But what’s the attraction and how can shopping centres and communities ensure that they are maximising the lucrative benefits the stores have to offer?
There are many benefits to hosting pop up stores within a shopping centre or community scheme, not only for the owners and tenants, but also for new and existing customers. For example, pop up stores can drive new, potential customers to the centre that have not previously visited. They can also provide existing customers a reason to revisit and improve the overall shopper experience. Also, they can help inform wider marketing decisions for the overall centre or community.
Here are some of the key ways that pop ups can benefit shopping centres and how communities can ‘cash in’ on these opportunities:
Increased Footfall and Insight
Shopper traffic should see a natural uplift around pop up stores, as regular shoppers become intrigued with the new store and merchandise on offer. By introducing a different pop up, centres can try out which type of shops and merchandise are creating peaks in traffic and which have little or no effect.
Linking the pop up to a centre’s overall loyalty and CRM system would help provide key insight into retail performance. This insight can then aid owners with future tenant decisions, helping them to understand which brands will be most lucrative to the overall business and which would be less desirable. It’s also a great way to test the waters in terms of retail spread, giving centres a chance to try a new type of retailer and it’s location without committing to a full blown retail unit. Owners can then consider tenant rates in relation to how potentially successful the store will be due thanks to data provided from the loyalty scheme.
To aid a heightened level of interest and excitement of having a pop up in the centre, marketing should look to target less frequent, opted-in shoppers with a notification of the store opening and then pre-warn when it is due to close. This will add an element of urgency into the communication, which should help to incentivise customers to make the trip to the centre.
New Shoppers – Engaged from Day One
Pop ups often appeal to fresh audiences, who wouldn’t have typically visited the centre or community previously. Once enticed to visit the pop up store, these new customers are prime targets to offer encouragement to join the loyalty scheme. We find that when shoppers are asked if they’d like to register for a loyalty scheme at the point of sale, sign up rates are greatly improved.
This way centres will be able to analyse this new type of shopper behaviour, determining insight such as; interests, most popular brands, average transactional value and visiting frequency. This will present centres will a fuller picture of its shoppers and potentially how they might tap into lucrative new markets that weren’t previously relevant to their initial target audience.
Happy Shoppers – New and Old
Pop up stores also make for a great excuse for getting in contact with loyalty scheme holders. By offering loyal customers a small perk or reward, linked to the new store, centres will encourage further promotion of the store opening as the customer spreads the word and shares news or experiences with friends and family – or even across social media.
These stores are often linked to seasonal trends or events, for example calendar pop up stores will typically appear in December/January. This contextual relevancy to shoppers’ daily lives will be much welcomed as today’s consumers are increasingly busy and distracted.
To truly maximise the opportunity that pop up stores present shopping centres and communities need to invest in a partnership that can be agile around these changes in tenant lists and promotional offers. By working with a third party developer to ensure that pop up stores can be included in marketing efforts to drive greater traffic, owners can then reap the rewards of maintaining satisfied, existing shoppers, enticing new, high value customers and, ultimately, encourage greater conversion rates.
If you enjoyed discovering about pop-up stores driving customer engagement, we recommend watching our latest webinar! It includes input from shopping centres and retailers across the world sharing their experiences with loyalty and how they were able to secure success from day one.
If you liked this blog post, you might like these:
I recently wrote about how GDPR is a major opportunity for some brands and a significant threat for others. At the moment, it seems like every day I receive a…
Faced with two distinct but loyal sets of customers, modern Rio street food group, Cabana, teamed up with Coniq, to launch the Cabana Club, a new loyalty programme that enhances the customer experience and increases brand engagement.
The new GDPR legislation will be an opportunity for the industry innovate. Coniq’s CEO reveals how you can be one of the winners in the industry after the legislation goes live.
Coniq kicked off MAPIC a day early, sponsoring the inaugural Outlet Summit explaining explaining why Outlets have a competitive advantage in the industry. To find out about everything Coniq covered at MAPIC, our event reflections will take you through all your need to know, including online versions of Ben’s presentations.