Phygital – a term that merges the physical and digital worlds. Both benefit from each other. Synergies are created. The digital and the real world – a convergence of two worlds.
What is meant by phygital?
Phygital could establish itself as a whole new term that generally describes the synthesis of the physical and digital worlds. Currently, however, it is only used to describe a retail experience or a marketing strategy. The consumer himself is considered phygital as soon as he exists not only in the physical world but also in the digital world and interacts in both. This is exactly why companies should use this space between the digital and the physical world to offer their customers the best experience there. After all, it is not only the digital world with its unlimited variety that brings joy to the customer and thus benefits to the company. No, stationary retail also still has a lot to offer that will remain irreplaceable in the future. Interactivity is certainly the biggest advantage here. Customers like to see the product they want to buy in front of their own eyes. They touch it to feel whether it is right for them. They get advice from sales staff and experience personal interactivity in this way. Often, stationary and digital shopping also go hand in hand. In two different ways. Customers find out about a product online, then go to a store to buy it. Or they look at it in the store and then order it online.
The phygital phenomenon
Phygital connects both the online and offline environments, taking the best aspects from each to create a much more complete and satisfying customer experience. The phygital phenomenon is differentiated from other marketing tactics by its multichannel focus, where the consumer buying process is fluid and familiar. Those who leverage phygital to connect the online and offline worlds can develop closer, more efficient, and more human customer experiences. In fact, in today’s modern time, it’s no longer outlandish to buy all sorts of products on the Internet, which offers unlimited choice. This fact is why the digital customer experience is so important. According to an annual e-commerce study from 2020 by IAB Spain, almost 3/4 of internet users shop online. However, about half of those surveyed buy online and offline – and the trend is rising. It is therefore essential to take this into account in the strategy. Especially due to the Corona crisis, many of us miss the interaction with sales staff and the personal service on site. In view of this duality of the online and offline worlds, there is the new concept that tries to bring together the best of e-commerce and stationary retail: phygital.
We browse, we look, we touch – which is precisely why two out of ten consumers still prefer to complete their purchase in stationary retail. Interpersonal interaction is highly valued here. So if this is the case, then physical and emotional components of the purchase should always be present. In this regard, the phygital strategy combines the best components of the digital retail experience such as immediacy, immersion and speed, and the ability to interact with people, the product and more that one gets in a retail experience in a stationary store. This is the best way to satisfy the high expectations of today’s hyper-connected consumers. The demographics that fit best the ideal consumers of phygital experiences are Millennials and Generation Z. This fact is forcing companies to adopt a 360° marketing strategy. A wonderful example of a phygital customer experience is the grocery store Amazon Go in the US. When entering the store, the customer scans a code with his smartphone, simply picks up the products and leaves again, all without the typical wait at the checkout. Instead, thanks to the mix of technical solutions, the customer receives an electronic receipt showing the amount that Amazon debits from their account.
How can we make the phygital user experience a reality? Phygital focuses on the three I-factors: immediacy, immersion, and interaction. Immediacy ensures that things happen at an exact moment in time. Immersion means that the user is part of the experience. In terms of interaction, the generation of communication is necessary to activate the more physical and emotional part of the buying process.
To achieve a true phygital experience, there must be technology that enables the introduction of immediacy or immersion. On the other hand, it introduces interaction, which is inherently lacking in the digital realm. These three conditions, applied to phygital, make the consumer feel more connected to the brand, generate trust, enhance empathy, and improve the user experience.
Bildurheber: beebright / 123RF Standard-Bild
