Part 5: Measuring Success of Pop-Up Retail Operations
Part 5: Measuring Success of Pop-Up Retail Operations
Chapter 16: Pop-up Analytics and Measurements
Chapter Overview
To achieve pop-up retail success, Haas and Schmidt (2016) suggest six strategic aspects to consider: 1) lifestyle products and luxury goods; 2) Millennials as the target market segment; 3) unexpected and extravagant shopping experience; 4) scarcity marketing tactics; 5) a location that fits the target market and brand; and 6) advanced brand awareness, distinctive brand community, or innovative brand power 1. These aspects provide a framework to plan and execute a pop-up retail shop and a direction for analyzing its outcomes.
Along with quantitative performance measures (such as store sales and profit) Return-on-Investment (ROI) metrics also link to relationship-building outcomes, as well as other subjective evaluations by retailers and customers. These are called non-objective performance indicators. In the context of omni-channel retailing, pop-up analytics weigh heavily on the ROI of social media impacts as pop-up shops are considered an integral retail channel that complement the bricks-and-mortar, online and other channels.
In Chapter 2, we discussed the five main objectives of pop-up shops: communicational, experiential, transactional, testing and institutional. It is worth noting that metrics for performance measures of pop-up shops with different primary objectives will vary accordingly.
Learning Objectives
Upon completion of the chapter, readers will be able to:
- Define different types of performance measures and ROI of a pop-up shop.
- Analyze the appropriate measures based on the objective of a pop-up retail operation.
- Develop pre- and post-pop-up strategies in the omni-channel retail context.
Video
The following video provides some context for how a retailer might measure the success of several pop-up shops with the aim to promote a new product. In this example, a Retail Consultant and the Director of Marketing for a major retailer discuss the pre- and post- strategies for the pop-ups that will run in three different locations.
1. Type of Metrics and ROI of Pop-Up Retail Operations
Choosing a set of appropriate performance measures to track for a pop-up operation is not an easy task, but is critical to the retail business’ ongoing success. The metrics used to compare different measures can help retailers in identifying areas of strength so they can devote sustained energy towards maintaining and enhancing the areas in their operations. On the other hand, proper metrics can also help retailers to recognize gaps in performance and steer their attention towards improving business processes to better achieve their goals and objectives. In order to develop and implement effective performance measures, a retailer must have a clear understanding of the broad dimensions of performance metrics.
For retailers, performance metrics include the use of information from objective measures and non-objective measures and performance c