Phygital. It might sound like a buzzword from a distant future, but it’s the present and future of retail. From online browsing to in-store experiences, every interaction shapes the customer journey and influences their perception of your brand.
With the rise of phygital strategies, retailers have a unique opportunity to enhance customer experiences by seamlessly blending the physical and digital realms. This means combining in-store experiences with online interactions. By doing so, retailers can create a more cohesive and personalized shopping experience for their customers.
According to a McKinsey study, personalization can boost revenue growth by as much as 15% and enhance the effectiveness of marketing expenditure by up to 30%.
Knowing how to implement a phygital strategy can greatly benefit your business. So, let’s dive into the world of phygital and explore how you can implement your own strategy.
What is phygital?
Phygital is more than just a combination of the words “physical” and “digital.” It’s a strategic approach that seamlessly integrates retail’s physical and digital aspects to enhance the overall customer experience. In essence, it’s about creating a harmonious ecosystem where the boundaries between the physical and digital worlds blur, offering customers the best of both.
Phygital in retail: the future of shopping
Consumers expect convenience, personalization, and seamless experiences across all touchpoints. Phygital retail is the answer to these evolving consumer demands. By embracing phygital strategies, retailers can bridge the gap between online and offline shopping, catering to diverse customer preferences and behaviors.
Phygital commerce encompasses a wide range of initiatives to enrich the retail experience. From interactive digital displays in physical retail stores to augmented reality (AR) try-on experiences in mobile apps, phygital commerce leverages digital technology to engage customers in meaningful ways. By integrating QR codes, mobile apps, and real-time data analytics, retailers can create immersive experiences that resonate with both online and offline consumers.
Phygital trends: new technologies
The retail sector is constantly evolving, driven by emerging technology and changing consumer behavior. Some of the notable phygital trends include live video shopping, in-store QR codes accessed via mobile devices, virtual reality (VR) fitting rooms, pop-up stores announced online, and AI-powered personalization. These trends enhance the shopping experience and enable retailers to gather valuable insights into customer preferences and behaviors.
Phygital experience examples
To illustrate the power of phygital experiences, let’s explore some real-world examples:
Pret A Manger
The coffee subscription service, Pret Perks, offered by Pret A Manger enables customers to conveniently sign up and handle their subscriptions via the mobile app. This service provides tailored offers and suggestions based on the customer’s likes and past purchases. The rewards of the program, including complimentary daily coffees and privileged access to new menu additions, can be claimed at any participating physical store, thus connecting the digital and physical worlds.
Fortnum & Mason
In our most recent webinar, Fortnum & Mason explained how they use TruRating’s technology to ask meaningful questions in-store that influence the decision-making behind their physical and online customer experiences. By asking a question at the point of sale, Fortnum & Mason can engage their continuous improvement and UX teams to enhance important metrics such as online conversion rate and in-store average order value. To find out more watch the webinar below.
Warby Parker
Warby Parker, a prominent eyewear company, grappled with the task of harmonizing their digital and physical retail experiences. Even with their “try at home” approach, they acknowledged the need to accommodate customers who favored shopping in a physical space. Their phygital strategy entailed crafting a frictionless experience where customers could assess the quality of their frames in-store without obligation. By enabling customers to store frame model numbers in their online accounts, Warby Parker successfully merged the physical and digital experiences, guaranteeing a seamless transition for customers across channels.
How to develop a phygital strategy
Developing your own successful phygital strategy requires careful planning and execution. Here are some key considerations to keep in mind:
- Integration – ensure seamless integration of physical and digital touchpoints to create a cohesive omnichannel experience
- Personalization – leverage customer data to personalize the shopping experience across all channels
- Engagement – focus on engaging customers through interactive experiences that captivate their attention
Successful phygital strategies require a harmonious integration of online and offline initiatives. Marketing campaigns should leverage the strengths of digital and physical channels to create impactful customer experiences.
From interactive in-store displays to targeted online promotions, retailers can drive engagement and sales by bridging the gap between the physical and digital worlds. By promoting qualitative experiences and expanding customer relations, you can build meaningful connections with your audience and differentiate your business from competitors.
How data can enrich your phygital approach
Customer data is the lifeblood of phygital retail. By harnessing the power of data analytics, you can gain valuable insights into customer behavior, preferences, and purchasing patterns. This data can inform decision-making processes and improve customer service, allowing you to optimize their phygital strategies for maximum impact.
Crafting a successful your own strategy requires a comprehensive approach, powered by TruRating’s innovative solutions:
By integrating data collection from both physical and digital channels, TruRating enables you to gain comprehensive understanding of customer behavior and preferences. From optimizing omnichannel campaigns to delivering personalized experiences, we can help you unlock the full potential of phygital retailing and drive business success.
Book a demo today to speak to the TruRating team about our in-store and online customer feedback platform.
