Reading Time: 10 minutes
Why Pop-Up Events Will Drive More Brand Growth than Loyalty Programs in 2025
In the world of e-commerce, it’s time to rethink the strategies we’ve clung to for years. Loyalty programs have had their moment, but it’s clear they’re not the growth engine brands need. While loyalty programs aim to retain existing customers, they do not effectively drive brand growth because they focus on customer retention rather than acquisition. Instead, market penetration—the ability to attract and engage new customers—will take center stage. And one of the most powerful tools for driving this growth? Pop-up events1. These exclusive, in-person experiences are reshaping the way digital brands connect with audiences, creating buzz, sparking engagement, and fueling customer acquisition like never before. Let’s dive into why pop-ups are set to outshine loyalty programs in the coming year.
Limited-edition product drops. The first of many ways pop-up events can undoubtedly steal the show for brands, giving them the unique opportunity to collect consumer feedback—live time with customers essentially at your brand’s front door. Pop-ups unlock a unique opportunity for brands to shine by introducing exclusive, limited-edition products, gathering real-time insights from consumers, and crafting unforgettable experiences2. An excellent example of this strategy was demonstrated by Harry Styles’ lifestyle brand, Pleasing, who hosted a highly anticipated pop-up event in Austin, Texas in April 2024. For the occasion, Pleasing designed apparel tailored to reflect Austin’s unique aesthetic, generating significant buzz throughout the city. The event saw hours-long lines, with Pleasing’s apparel sales reaching exceptional levels.
“Harry Styles’ Pleasing Unveils Austin, Texas Pop-Up.” Fashion Network, Austin Texas, 29 Apr. 2024, us.fashionnetwork.com/news/Harry-styles-pleasing-unveils-austin-texas-pop-up,1628658.html.
Pop-ups are a great way for online brands to connect with influencers on a more personal level, giving them a chance to roll out the red carpet with exclusive events and thoughtful gifts that often lead to valuable user-generated content (UGC). Think photo booths, branded backdrops, experiential videos, and more. I mean, who doesn’t love a little free brand promo? A standout example of this marketing strategy comes from none other than Hailey Bieber. Her skincare brand, Rhode, has skyrocketed to success by leveraging pop-up events in NYC and LA, transforming them into unforgettable experiences that fuel its growth3. Known for her lip treatments, Hailey has elevated her events with unique touches like the now-iconic Rhode photo booth. These booths have popped up everywhere—from the streets of NYC to the desert for Coachella, to trendy spots around Los Angeles—drawing in both influencers and fans of the brand. Attendees line up to snap photos and leave with a branded photo strip, perfect for sharing on social media. This fun, immersive brand experience has generated major buzz and undoubtedly amplified Rhode’s presence in the beauty world. See the Rhode photo booth in Los Angeles here.
https://www.instagram.com/rhode/p/C-0UC8NPINA/?img_index=1
If you couldn’t tell, pop-up events are one of the smartest investments a brand can make to showcase itself and its products. There’s nothing more gut-wrenching than waiting to buy something and then realizing that it was a limited-time thing (once it is gone, of course!). Pop-ups create exclusivity and FOMO (fear of missing out), two of the most influential emotions for today’s shoppers. There are so many reasons why you should create a pop-up for your business and little to no reason why you shouldn’t.
Pop-Up Events vs. Loyalty Programs: New Customer Acquisition
Pop-up events offer more than just content opportunities; they’re powerful tools for attracting new customers and driving brand growth by generating buzz and excitement. As digital brands increasingly invest in physical experiences, they’re finding these in-person events are more effective for acquiring new customers than traditional loyalty programs. Pop-ups create a memorable and immersive brand experience that attracts new customers, including hard-to-reach light buyers seeking spontaneous purchases. These experiences can also inspire customers to share their stories, amplifying the brand’s reach organically through word-of-mouth.
By creating a sense of exclusivity and urgency, pop-ups attract a wide range of audiences—from die-hard fans to brand strangers— all eager to explore something new and unique. This immersive setting allows brands to showcase their unique personality and build stronger emotional connections, helping customers feel more personally involved with the brand and its product offerings. Pop-up events often spur spontaneous purchases and social media sharing, allowing brands to capitalize on user-generated content that extends reach well beyond the pop-up’s physical location4. With each event, brands can gather real-time consumer feedback, refine their brand messaging, and foster a vibrant community, building a foundation for both immediate engagement and long-term customer loyalty.
Attraction: How Pop-Up Events Attract New Customers
Pop-ups, by intentional design, place a brand directly in high-traffic areas, reaching both loyal customers and new potential light buyers. For digital-first or e-commerce-only brands, establishing a real-world presence can be transformative. Pop-ups bridge the gap between online and in-person engagement, giving people the opportunity to connect with the brand in a tangible way. These experiences not only foster stronger relationships and lasting emotional bonds but also enhance brand recall—the likelihood that consumers remember the brand and its products—while creating memorable interactions that keep the brand top of mind.
Beyond simply fostering a connection between consumers and brands, pop-ups tap directly into the human psyche by leveraging the allure of exclusivity and the thrill of the fleeting moment5. The limited-time nature of these experiences ignites a sense of urgency and excitement, playing into our innate fear of missing out (FOMO). This psychological pull draws people in, transforming a simple transaction into a memorable event.
Pop-ups also offer an interactive and often personalized encounter that goes beyond what the digital world can replicate. They satisfy a deep-seated human desire for connection and novelty, creating a sensory-rich environment where customers can see, touch, and engage with a brand in real time. These experiences forge emotional bonds, making the brand not just a product but a vivid memory and experience. By tapping into this mix of curiosity, urgency, and emotional connection, pop-ups turn ordinary shoppers into passionate brand advocates.
Media: https://www.tiktok.com/@wantlocker/video/7406390699647716651
Engagement: How do Pop-Up Events Engage New Customers?
The Ehrenberg-Bass Institute for Marketing Science is the world’s most highly revered center for research into marketing. In line with the Ehrenberg-Bass principle that brand growth depends on expanding reach, pop-ups offer a powerful way to engage casual or first-time buyers who may not otherwise encounter the brand online. Light buyers are categorized as shoppers with little to no brand loyalty. They may purchase a product or service once, but they make no connection to the brand and have little intention of making future purchases. But here’s where pop-ups work their magic: utilizing different consumer touchpoints, pop-ups can help cultivate an emotional connection with this light buyer consumer category. By immersing new light buyers in a memorable, experiential setting, pop-ups enhance both mental and physical availability—key factors that determine how easily a brand comes to mind and how accessible it is for purchase. This strategic approach increases the likelihood that these light buyers will not only remember the brand but also choose it over competitors when making purchasing decisions. By creating a lasting impression, pop-ups position the brand as the go-to choice in moments of need, effectively bridging the gap between awareness and action.
Pop-ups also capitalize on curiosity and the “fear of missing out” effect, drawing in passersby who are simply intrigued by the temporary, exclusive nature of the experience. Brands like Daily Drills, Parke, and others, strategically host pop-ups in high-traffic cities like LA and NYC, maximizing attention for their events. This setup not only creates a sense of urgency but encourages immediate exploration and interaction. Furthermore, by tailoring these events to reflect the brand’s unique style and values, pop-ups make a lasting impression, positioning the brand as accessible, relatable, and worth revisiting. Best of all, these experiences often turn into share-worthy moments—both in real life and on social media. As people post and talk about the pop-up, the brand’s reach grows organically, building a foundation for continued growth through word-of-mouth and social proof.
.
Media: https://www.tiktok.com/@rhode/video/7384098569147436331
Conversion: How Pop-Up Events Convert New Customers
The Ehrenberg-Bass research emphasizes that brands cannot thrive on customer retention alone; sustained growth depends on consistently attracting new customers. Pop-ups fuel this growth by prioritizing acquisition over retention, creating prime opportunities to achieve “a little loyalty and a lot of acquisition6.” This further reinforces that loyalty programs alone can’t sustain and grow a brand. Pop-ups are the perfect way to make a first impression, giving new audiences a feel for the brand and setting the tone for lasting connections..
By offering a one-of-a-kind, immersive experience, pop-ups convert curiosity into action, encouraging immediate purchases and memorable interactions. This initial engagement serves as a powerful introduction – people don’t just visit; they engage, shop, and walk away with a story worth sharing. That first encounter often sparks something bigger—whether it’s following the brand online, coming back for more, or turning customers into loyal advocates long after the pop-up ends. As attendees share their experiences, pop-ups also amplify brand visibility, establishing the brand as not only innovative and accessible but also as a part of consumers’ lifestyle choices.
In a world where brand loyalty is fleeting, pop-ups offer the perfect solution for brands aiming to grow by memorably reaching new consumers, effectively reinventing the traditional customer-brand journey. With consumers constantly shifting their preferences and being exposed to countless options, it’s harder than ever to maintain long-term loyalty. Pop-ups break through the noise by creating immersive, unique experiences that captivate attention and spark excitement, allowing brands to stand out in a crowded market. This approach ensures brands can grow by continually attracting fresh customers, rather than relying solely on existing loyalty, which can be unpredictable and short-lived. Pop-ups transform curiosity into genuine connection, turning passersby into devoted fans and leaving a lasting impression that keeps the brand top of mind long after the event wraps up.
Bridging the Gap: How Pop-Ups Connect Product Accessibility with Mental Recall
Understanding Mental and Physical Availability
Every brand’s primary goal is to be top-of-mind when consumers are making a purchase. It’s pretty rare for someone to purchase from a brand they’ve never heard of, which is why building brand awareness is so important. But how do you actually boost brand awareness and grow?
One fundamental driver of brand growth is availability. This concept is divided into two critical components: physical availability, ensuring the brand is easy to find and purchase, and mental availability, ensuring the brand is top-of-mind when consumers make buying decisions7.
Both mental and physical availability work together to drive brand growth by ensuring that the brand is within the consumer’s reach and is top of mind when a consumer is ready to make a purchasing decision. A brand with strong physical availability but weak mental availability becomes invisible in plain sight—consumers may see it, but it doesn’t click as something they need or want. On the other hand, a brand with strong mental availability but limited physical presence frustrates even its most passionate fans; no matter how much they love it, they can’t buy what isn’t accessible. The sweet spot? Building both visibility and relevance, ensuring your brand is top of mind and easy to find.
Pop-Up Events as a Tool for Increasing Physical Availability
Pop-up events introduce your brand to new locations and audiences, increasing product accessibility and driving immediate sales by creating a sense of urgency with a limited-time purchasing opportunity. They offer digital-first and e-commerce brands a unique, innovative way to create physical availability—bringing products typically found online directly into customers’ hands. By providing this real-world presence, pop-up events can effectively mitigate the challenges of not having a brick-and-mortar retail location, bridging the gap between digital convenience and the tactile, immediate access to their product.
Daily Drills, a digital clothing brand known for its high-quality loungewear and its iconic “!!!” logo, does not have any physical brick and mortar stores, so they’ve incorporated regular pop-up events into their marketing and sales strategy. Recently, they hosted a “Crewnecks & Caffe!ne” pop-up event in Dallas, Texas, in collaboration with another iconic brand, La La Land Cafe. Consumers showed up from across Texas,even staying overnight to get a spot in line, hoping to be one of the lucky few with the ability to purchase a limited-edition crew neck sweatshirt alongside other merchandise. One TikTok user even said, “it was definitely worth waking up at 4:00 AM!” This pop-up event exemplifies how a digital-first brand can strategically invest in physical availability, testing a new environment, increasing product accessibility, and giving consumers the opportunity to engage with the brand and other brand loyalists in person, rather than solely online.
@dailydrills. (2024, September). Photo of tearaway ads for the Daily Drills pop-up in Dallas. Instagram. https://www.instagram.com/stories/highlights/18046196740939434/
Pop-Up Events Boosting Mental Availability
Have you ever heard of FOMO? Pop-up events shine at making you feel left out, if you aren’t willing to stand in line for 4-5 hours hoping there’s stock left when you get to the front. They deliver a sense of novelty and a one-of-a-kind experience, creating a spectacle that leaves a lasting impression on customers and boosts the brand’s mental availability. The engaging and exclusiveness of the experience makes the brand more memorable, especially for light buyers who may not be familiar with it and are just looking for a good time. Along with memories, pop-up events allow customers to engage directly with the brand, enhancing emotional connections. Face-to-face interactions and immersive experiences deepen emotional connections between customers and the brand, which can improve recall during future purchasing decisions.
The Parke NYC pop-up “Parke Market” had everyone wishing they were invited to Fashion Week. Parke gifted special tote bags, allowed customers to shop unreleased items, & even released exclusive, never-before-seen NYC pieces, only sold at the pop-up event. Parke gave their existing and new customers an exclusive, immersive experience that will leave a lasting impression on their future purchasing decisions with the brand. The brand did a fantastic job of creating buzz around the entire experience and making sure the event was hard to miss.
By offering a unique and engaging brand experience, pop-ups appeal to loyal customers and increase the brand’s mental and physical availability, making it easier for casual or first-time buyers to discover and engage with the brand, driving both short-term sales and long-term growth.
@parkeofficial. (2024, September 8th). Photo of customers in line at Parke NYC event. Instagram. https://www.instagram.com/p/C_qQruCOsxp/?img_index=3
Key Takeaways: Pop-Up Events vs. Loyalty Programs
Brands cannot survive solely on customer retention and building brand loyalty. While loyalty programs aim to retain existing customers, they do not effectively drive brand growth because they focus on customer retention rather than acquisition.
According to the EBI, it’s proven that focusing on reaching new customers and building awareness is more successful than putting all efforts toward maintaining the regular clientele. Some brands see brand loyalty as a risk-free option for guaranteed revenue. But, it’s smarter to take the risk. Take Abercrombie, for example, they focus a ton of their efforts towards 20% off member sales, building up rewards in the app, etc… but are they really targeting the people who ditched them in the 2010s?
To further prove this point, many major digital brands (who sell out every drop in minutes on a weekly basis) do not have loyalty programs that focus their effort on the group already setting their alarm clock for the next drop. Specifically, Paige Lorenze’s Dairy Boy instead prioritizes exclusivity, pop-up events, and FOMO-driven strategies. This summer, her “Country Mart” pop-up featured special U.S. Open merch, curated vintage pieces, their new bedding, and more.
@dairyboy. (2024, August 15th). Photo of Dairy Boy pop-up event announcement. Instagram. https://www.instagram.com/dairyboy/p/C-s7YaLyYNY/
Pop-up events have become a game-changer for digital-first brands looking to increase their reach and connect with more people. They offer unforgettable, in-person experiences that engage both loyal and new customers, helping brands bridge the gap between their online presence and real-world interactions. These events not only make the brand more accessible but also help boost visibility and create emotional connections with consumers. By delivering unique, immersive experiences, pop-ups generate buzz, bring in fresh audiences, and fuel long-term growth in ways loyalty programs can’t.
1 https://www.entrepreneur.com/growing-a-business/companies-turn-to-pop-up-events-and-stores-to-increase/286231 2 https://www.cvent.com/en/blog/events/pop-up-events 3 https://www.businessoffashion.com/articles/beauty/rhode-beauty-pop-ip-new-york-hailey-bieber/ 4 https://djerfavenue.com/en-us/angels-avenue/our-avenue/ 5 https://faculty.wharton.upenn.edu 6 https://marketingscience.info/about-loyalty/ 7 https://partnerships.nature.com/blog/the-scientific-approach-to-brand-growth/
