10 min read

The future of phygital and customer experience in retail

In this article, we’ll learn about how phygital is the new reality taking customer experience to a whole new level, in retail.

Phygital, a portmanteau of physical and digital, is the future of the customer experience. It blurs the lines between physical and digital channels and delivers an experience that’s both memorable and convenient. And while it may sound like a gimmick, it’s actually a real thing that’s becoming increasingly popular.

What is phygital retail?

Phygital is the new buzzword in the retail industry. Its popularity is driven by the rise of the experience economy and the costs of digital marketing. As the digital channel market grows, it’s becoming increasingly important to ensure that all customers have access to what they want.

The phygital experience is the result of an evolving technological landscape and an ever-changing consumer behavior. It’s a good way to increase employee productivity and customer satisfaction while providing a convenient shopping experience. And it may even replace some of the roles that salespeople, content curators, and content marketers currently perform.

Phygital is not just for digital-first companies, although those are likely to be the first adopters. The technology is already being used by traditional brick-and-mortar companies to improve their customer service and enhance their business model.

How do we get the most out of phygital?

To get the most out of phygital, brands must unite digital and physical experiences and understand what their customers are looking for. For instance, it’s not enough to have a website; they also want a convenient shopping experience.

Phygital stores, which are becoming increasingly common, allow customers to browse, buy, and pick up their purchases without having to wait in line. In addition, phygital technology gives retailers access to a wealth of data to make more informed business decisions. In the future, phygital stores will become modern-day pick-up points. This can save a company money in terms of space and overhead.

And it’s a good idea to think about the phygital in all of its aspects. It’s not just about a website; it’s also about fusing physical and digital experiences and using data to create the most relevant and convenient experience possible. It’s the way to do the best possible job of customer service.

What are the ways phygital can help you in your organization?

Phygital customer experience

Phygital customer experience trends provide a glimpse into how consumers are engaging with companies and brands. The experience economy is transforming the way consumers shop. By blending physical and digital experiences, brands can better meet the needs of consumers and increase their loyalty. For instance, Gucci uses innovative social media campaigns1 to catch the attention of millennials.

Phygital strategies

Retailers who can define a ‘phygital’ strategy and identify what they need to do today will be able to plan for the future. They will also be able to focus on the right digital and physical strategies to meet their needs. As the world changes, retailers must adjust their customer experience strategy to accommodate the new world. Retailers who can do so intelligently will prosper.

Phygital strategies require collaboration across the organization. A company’s C-suite should have a clear vision for the future. A strong digital officer will be able to rally the company around this vision. To develop a phygital strategy, companies must first analyze customer experience. Next, data analysis can help optimize it. Once the company has a strategy, phygital planning and execution can begin.

Seamless experience 

Today’s customers expect a seamless experience. This is especially true for younger consumers. They want to interact with their brands in a way that is both engaging and relevant. As such, brands must create a digital experience that is accessible and meaningful to all consumers. In addition, businesses need to scale their delivery operations to meet customer demand.

Digital adoption

Retailers can also use physical and virtual experiences to encourage digital adoption. Brands can offer exclusive offers to digital users, for example. This can be done through signage and augmented reality. In addition, customers can scan QR codes2 to view menus at restaurants. These codes can also be used to advertise events. QR codes also offer safety and convenience.

Virtual reality is still a relatively nascent technology. It has a bright future, but the consumer adoption rate has yet to reach mainstream levels. However, companies are already taking advantage of this trend. For example, a Chinese fast-food chain has installed smart screens in its stores. The screens allow diners to order and pay for their meals. Another example is a cashier-free Amazon store that uses deep learning and AI to process transactions without a cashier.

Virtual worlds can also be used to host virtual events. In addition, augmented reality is gaining traction in retail. Brands can use augmented reality to display product offerings and promotions. Customers can also interact with virtual avatars of themselves.

What is the role of phygital in the future of retail customer experience?

Phygital commerce

Phygital commerce is a retail customer experience that has been a boon for the customer who wants to buy products from diverse stores and locations. Phygital commerce satisfies the needs of channel-independent customers and has also revolutionized the way education is imparted to students.

Phygital commerce also allows for more direct communication between customers and store staff. For instance, customers can order a product online, and an associate will prepare the order. Once the order is ready, the customer can pick up the product at the store. Some stores also offer curbside pickup. This service is similar to Buy Online Pickup In-Store (BOPIS)3 and allows customers to choose their preferred order fulfillment method. Customers can notify the store through an email, text, or phone call.

Phygital commerce also gives shoppers the ability to browse products online, read reviews, and interact with products. For example, shoppers can use iPads to browse merchandise, see customer reviews, and learn about product details.

While phygital commerce is a relatively new concept, its development has been a result of several factors. First, the Internet’s explosion in the 90s. Second, social networking. Third, the pandemic has made shoppers less likely to visit a physical store. Finally, the COVID-19 surge has accelerated the growth of online shopping.

Phygital stores will evolve into convenient modern-day pick-up points

Phygital stores are changing. They will become more convenient pick-up points that customers can use to shop with ease. These innovative phygital innovations combine digital and physical best practices to provide consumers with an immersive shopping experience.

Customers can now scan products using their smartphones to read product reviews, compare prices, and check inventory. Curbside pickup is another option that allows customers to pick up items in-store. Customers can notify the store of their pick-up by calling, texting, or emailing the store.

Customers can also connect with the company’s contact center by using a bot. Live chat is also available, allowing customers to avoid the hassle of a traditional checkout process.

Consumers have become accustomed to shopping online and are increasingly looking for convenience and support. Gen Z and baby boomers are more likely to want to be supported by technology. Retailers must find the right balance of phygital to ensure that they offer the right customer experience.

Phygital innovations

Some phygital innovations include virtual fitting rooms, tactile surfaces, and geolocation. Retailers can use the technology to provide unique offers and present product selections in virtual layouts. In addition, brands can offer live chat to help shoppers choose their favorite items.

These phygital retail experiences are convenient, engaging, and speedy. They blur the lines between online and offline shopping. They emphasize the immediacy and immersion of the experience.

Phygital commerce fulfills the channel-independent customer needs

Phygital commerce, or cross-channel marketing, combines the best of digital and physical shopping experiences to create an unified customer experience. It enables retailers to connect with customers in real-time, both online and offline. The benefits include increased brand awareness, trust, and sales revenue4. However, to create a successful phygital strategy, retailers must first consider the advantages and disadvantages of both physical and digital experiences.

Phygital commerce is already being used by some of the world’s leading brands. These include Chili’s, Panera, and McDonald’s. These examples of phygital commerce are just a few of the many ways that retailers can use digital technology to provide a unified customer experience.

Another way that retailers can increase foot traffic in their physical stores is to promote events. By creating QR codes that can be scanned by customers, retailers can promote special events to a larger audience. QR codes can also be used to display augmented reality advertisements.

Unique phygital shopping experience through 3D product visualization

Phygital retail is a way of selling products that lets customers interact with a brand’s product at different touch points. For instance, customers can virtually try on the products through 360-degree views and zoom in on the details of the product. They can also choose their preferred payment methods and order fulfillment methods. This increases brand awareness and improves customer loyalty.

A 3D product visualization company can play an important role in phygital retail. They can help manufacturers keep up with the changes in the market and provide a variety of visual and interactive elements for their products. They can also help improve a manufacturer’s financial performance.

A 3D product visualization company can also help manufacturers create a more immersive experience for their customers. For instance, We Make-Up uses Facebook AR to allow users to try on liquid lipsticks through different filters. This would not be possible without a 3D visualization company.

In addition to creating a more immersive experience for customers, a 3D product visualization company can also help manufacturers stay in business. They can also help manufacturers keep up with the changes in the ecommerce market. A 3D product visualization company can also help retailers create valuable customer information for physical products. These companies can also increase the authenticity of products in ecommerce.

Phygital model – need to understand customers and their behavior

It is important for businesses to understand the consumers and their behavior. This will help them provide a customized experience. For instance, Rebecca Minkoff7 offers customers the chance to try on items in the store and request a different size in seconds. These requests can be tracked by AI to improve the overall experience.

It’s also important to understand the consumers’ psychographics. Marketers need to analyze website data, social media data and polls. Then, they need to send surveys to the customers. This will help them determine the demographics of the target audience and create a personalized phygital experience.

The phygital experience provides a seamless customer experience and creates an automation platform for day-to-day activities. It also creates cost savings and resource optimization. It is critical to the long-term viability of the high street. In the future, phygital services will play a crucial role in local business growth.

Phygital services will also reduce the gap between organized and unorganized markets. This will provide a level playing field for businesses of all sizes. In addition, phygital services will help firms to provide a superior customer experience, which in turn will lead to increased profit margins.

Phygital services will also provide an alternative platform to market shocks. For example, if a retail store receives a sudden increase in demand, it can offer interactive catalogs on phygital context.

QR codes offer a unique phygital shopping experience

QR codes and other phygital technologies are making their way into the physical world. These technologies have been around for years, but they are finally making a splash. The best part is, the consumer can still experience the thrill of physical retail. A QR code experience is not only an interesting way to interact with customers, but it also significantly cuts down on staff expenses. Moreover, it also enables brands to harness richer data to inform their future business decisions. This new marketing platform is set to become a standard of the future.

QR codes can be found in bars, restaurants, and museums. A QR code is basically a barcode that is easily scannable with your phone. The QR code is often used to display content, such as a map or restaurant menu.

The QR code is also the most obvious way to display a company’s contact information and other contact details. Beyond this, you can use the QR code to display promotional materials, such as coupons. QR codes are also useful for displaying information about the company’s product line. Additionally, they can function as a mobile payment method. The QR code’s many uses include tracking a visitor’s location and storing and retrieving information about a visitor.

In a nutshell, the QR code is the phygital cousin of the traditional e-commerce site. It’s a good way to improve customer service and increase profitability. The best part is, the QR code has a large number of possible applications. In addition, the QR code is also easy to read in low light. In fact, the QR code has been a hit with consumers.

Metaverse is seen as the physical bridge to the metaverse. Complementing the physical space and the virtual space, the user is provided with a total immersive experience. Reimagining spaces to include user preference in both physical and digital space has become an important aspect of design.

What Relevantz can do for you

Our customer experience design capabilities can help your organization reimagine its digital customer journey and create a seamless experience that drives customer delight and revenue growth. We can analyze your current customer journey map and make recommendations for a well-orchestrated and seamless digital experience that meets your customer needs.

Would you like to talk to our experts to help your business benefit with phygital?