What is Phygital and Why Does Your Business Need It?

Phygital, a seamless blend of online and offline experiences facilitated by technology, is a prominent trend reshaping the retail industry. Its core objective is to create highly personalized interactions that enhance customer value and foster active engagement.

What is Phygital?

Phygital is the seamless integration of physical and digital experiences. It’s about creating immersive, personalized interactions that connect both realms and offer added value to users and customers. The goal is to maintain a smooth transition between the physical and digital worlds, fostering a natural flow that enhances the overall user experience (UX) and customer experience (CX).

Modern consumers are already masters of phygital. They effortlessly blend their online and offline shopping experiences, often browsing product reviews online before visiting a physical store or touching and feeling products in-store before making an online purchase.

How Has Phygital Technology Become an Integral Part of Our Lives?

  • Self-checkouts
  • Smartwatches and smartbands
  • Digital public transport tickets

Shoppers are willing to pay 20% more for products they can experience in 3D.

Beyond these well-known examples, countless innovative phygital solutions are reshaping our interactions with businesses. For instance, have you ever encountered digital self-ordering kiosks in fast-food restaurants? This is a common phygital experience.

Additionally, augmented reality (AR) and virtual reality (VR) are revolutionizing user experiences. Imagine virtual dressing rooms that allow shoppers to visualize clothing without physically trying it on.

How Do You Provide Great Phygital Experiences?

Creating exceptional phygital experiences extends beyond intuitive design; it demands a deep understanding of consumer behavior and preferences. In today’s competitive landscape, brands must focus on developing solutions, products, and services that allow customers to experience the brand, not just purchase from it.

A mere 9% of respondents expressed satisfaction with their in-store shopping experiences, according to IBM, while only 14% felt the same about online shopping. Businesses face the challenge of seamlessly connecting and coordinating customer journeys across both digital and physical touchpoints.

Key Elements of Great Phygital Experiences:

  • Immediacy: Actions should be swift, ensuring products and services are readily available to the right person at the right time.
  • Immersion: The consumer should be at the center of the experience. Virtual fitting rooms and interactive kiosks are examples of immersive phygital elements.
  • Interactivity: The relationship between the brand and consumer should be interactive and bidirectional, fostering emotional engagement and making interactions more convenient.

How Smartphones Are Powering Phygital Experiences?

Smartphones and mobile apps are at the core of this transformation, not only changing but also enriching phygital strategies and user experiences. Here are some examples:

  • Digital wallets and loyalty programs
  • Immersive AR/VR experiences
  • Barcode and QR code scanning
  • Streamlined self-checkout via smartphone apps
  • Autonomous stores for frictionless shopping
  • Click & collect services

How Does ETP Unify Help You Provide Phygital Experience?

ETP Unify provides phygital experiences by seamlessly integrating physical and digital channels, creating a unified and consistent shopping experience for customers. Here are some key ways it achieves this:

  • Omnichannel Integration: ETP Unify connects various physical and digital touchpoints into a single, cohesive platform.
  • Personalized Experiences: It delivers highly personalized experiences by leveraging customer data and analytics.
  • Inventory Management System: ETP’s Unified Inventory Management provides real-time inventory visibility across all channels.
  • Unified Checkout: It offers a unified checkout process, reducing cart abandonment.
  • In-Store Technology: It incorporates interactive kiosks, digital signage, and mobile apps.
  • Loyalty Programs: Integrated loyalty programs encourage repeat business.
  • Data Analytics: It collects and analyzes customer behavior to optimize offerings.

Phygital is not a futuristic concept; it’s the present. Most consumers are already navigating this seamless blend of physical and digital experiences without even realizing it.

Why You Need To Be Pro-Phygital In Retail

The term ‘Phygital’ is derived from the existing and emerging technology which employs the concept of bridging the gap between the physical and digital world, through convenient and interactive experiences.

In retail, phygital signifies the convergence of the physical and digital marketplace which helps brands and enterprises to engage customers on a broader spectrum and create a retail ecosystem which is truly seamless.

To cite a couple of examples, Tesco’s Homeplus pioneered the virtual supermarket where consumers scan the QR code of the product they’d like and the item is automatically added to an online shopping cart. Post payment through the secured mobile app, shoppers can continue towards home to find a bag of groceries on their doorstep. Brazilian fashion retailer C&A created a store with real-time “likes” counters on its clothes hangers. The like data was taken from C&A’s Facebook page where the clothes were listed for people to interact with, allowing customers at the store to see how many people online think that a particular product was a good buy.

The last couple of years have shown us the phygital marketplace is teeming with opportunities and retailers have just begun to explore and execute the same. In many ways, it is the organic evolution of the omni channel retail space with a multi-dimensional approach to not just increase customer reach and revenue but also create experiences that weave themselves perfectly into the customers’ lives.

Charles Darwin said, “It is not the strongest or the most intelligent who will survive but those who can best manage change.” Shoppers today have adapted to change and traversed onto the interchangeable, interdependent and integrated multiple channels of retail.

Global leaders in retail will engage and exchange their perspective and ideas on the evolution of phygital retailing at the Retail Congress Asia Pacific 2015. ETP Group is proud to be the Key Partner at the Retail Congress Asia Pacific 2015.