What Is Phygital Commerce? Explanation With Examples
With more and more individuals making purchases online, e-commerce companies are searching for innovative methods to set themselves apart from rivals and attract customers. “Phygital,” an omnichannel retail shopping experience that offers a chance to build a more immersive, engaging, and interactive customer experience, is at the forefront of these strategies.
Retailers are using phygital tactics to maximize conversions, personalize customer journeys, and boost brand loyalty. Examples of these retailers include Sephora and Amazon.com.
If you too are planning to include Phygital tactics in your ecommerce store, and are looking to understand it better, then you are at the right place. Check out the content of this post to know more about Phygital:
- What Is Phygital Commerce?
- What Does Phygital Mean For Ecommerce?
- 6 Phygital Retail Strategies For Success
- Common Phygital Retail Challenges
- 3 Phygital Commerce Examples
- How Appic Softwares Can Help You Include Phygital Commerce In Your Store?
What Is Phygital Commerce?
The term “phygital retail” describes the blending and unifying of online and brick-and-mortar retail experiences through the merging of physical and digital retail channels.
Customers may easily switch between physical and digital channels in a physical retail space, giving them many touchpoints to interact with brands and products. Virtual reality shopping, interactive fitting rooms with digital screens, and buy-online-pick-up-in-store services are a few examples.
What Does Phygital Mean For Ecommerce?
Going digital gives eCommerce companies additional ways to interact with customers in an efficient manner, which boosts sales and customer loyalty. The tactile, immersive experience of brick and mortar combined with the ease of use, accessibility, and data-rich environment of eCommerce now offers brands the best of both worlds.
According to a Forrester study, the following outcomes could lead to a seamless phygital consumer experience:
- A 17% increase in conversions
- A 16% increase in revenue.
- A 20% increase in client contentment.
How Consumer Preference Is Driving The Phygital Retail Trend?
Retailers have been obsessed with finding out if customers prefer to shop online or in-store. On the other hand, customers are increasingly favoring offline and online channels. Going hybrid is In all age brackets, 27% of customers More than one in four (27%) customers indicate that hybrid shopping is their main way of making purchases, according to IBM’s Customers Want It All survey. Out of all age groups, the largest percentage of Gen Zers (36%) report that their main method of shopping is hybrid shopping.
The hybrid consumer is one who demands interaction, individuality, and convenience.
6 Phygital Retail Strategies For Success
Strategies for physical retail can be implemented in a variety of ways. Furthermore, you’re not limited to just one.
To maximize the benefits of both physical and digital retail experiences, a lot of companies implementing the physical retail model use different tactics.
These are six strategies for physical retail:
Create A Seamless Omnichannel Experience
Businesses need to develop an omnichannel retail experience that seamlessly connects their digital and physical touchpoints and allows customers to purchase online and in-store, or vice versa, in order to succeed in the physical retail space.
Customers may, for instance, peruse merchandise online before attempting to buy it in-store, or the other way around. Their surfing history, purchases, and preferences both in-store and online ought to be linked.
Rather than keeping their products in a warehouse, some retailers may decide to use direct store delivery to get their merchandise straight from a manufacturer in order to streamline this procedure. When carried out correctly, it can raise customer satisfaction; nonetheless, there are drawbacks as well.
Use Data To Provide Personalization
Product recommendations made using consumer data to offer customized shopping experiences are dependent upon:
- previous purchases
- Customized savings and AI chatbots
Vogue Business reports that 16% of Gen Z consumers would like customized offers to be sent to their phones while they are in-store. As a result, you may customize in-store experiences by utilizing data from online interactions.
Also Read: Achieve Personalization In Ecommerce With These 8 Easy Steps
Enhance In-Store Experience
Phygital retail aims to improve the in-store experience in addition to incorporating digital components into the actual store setting. To entertain and engage clients, this may entail utilizing augmented reality (AR) or virtual reality (VR).
For instance, a furniture business could employ virtual reality (VR) to let clients “walk through” various room layouts digitally before they buy.
Using technology to improve and expedite service—such as self-checkout kiosks or mobile payment options—is another approach to improve in-store experiences.
Invest In Mobile Ecommerce
Businesses should include mobile commerce in their physical strategy since more and more customers are shopping on their mobile devices.
A Yes Marketing study found that 57% of customers had used a retailer’s mobile app when they were in-store.
Customers may quickly browse products, make purchases, follow orders, and contact customer support with the help of a mobile app. In order to enable features like click-and-collect services, digital coupons, and smartphone payments, it can also interface with in-store systems.
Leverage AR And AI Technology
In physical retail, augmented reality (AR) and artificial intelligence (AI) are frequently utilized to give clients distinctive and customized purchasing experiences. By enabling users to “try on” clothing, for example, augmented reality (AR) can improve the online shopping experience.
Conversely, artificial intelligence (AI) can be leveraged to power chatbots that offer tailored product suggestions or round-the-clock online customer support.
Create A Strong Online Community
Creating a robust virtual community ought to be your primary concern, regardless of where you are in the process of physical retail.
This entails interacting with clients on social media, starting online forums where clients can exchange stories and suggestions, and even organizing online or off-site gatherings.
Businesses can foster a sense of loyalty and belonging among their customers by developing a strong online community. This encourages repeat business and word-of-mouth recommendations.
Common Phygital Retail Challenges
In general, the retail industry is not easy to navigate. Retail distribution tactics, merchandising, inventory control, customer support, and other factors need to be taken into account.
Here are a few typical problems to think about:
Getting Your Tech Right
Setting up the appropriate technologies is one of the first challenges in establishing a physical approach. Retailers must select and fund technology that works well with their e-commerce tech stack in addition to supporting their present business strategy, or the other way around.
It will take careful preparation, collaboration with reliable outside parties, and phased execution to overcome this obstacle. It’s imperative to begin small, test, and then grow.
For example, as a retailer grows, it may initially create an online store and then progressively add services like mobile shopping, AI-powered recommendations, or augmented reality product previews.
Data Privacy And Security Concerns
Due to the phygital retail model’s heavy reliance on the gathering and analysis of consumer data, privacy, and security issues are raised.
Consumers are likely to stop doing business with firms they believe to be unreliable since they are more aware than ever of their right to privacy.
To solve this, companies must give data security top priority by taking the following actions:
putting strong security measures in place (2FA, encryption, etc.)
Respecting the rules on data protection
collaborating with reliable outside suppliers
They also need to give customers clear, easily available privacy policies and be open and honest about their data collection processes. Customers should always have control over their data by using opt-in consent.
Online and offline experience integration
The foundation of physical retail is the integration of online and offline experiences, but establishing a smooth transition between these settings can be difficult. A fragmented encounter may mislead consumers and damage the reputation of the company.
Realizing that the two channels should enhance rather than contradict one another is essential to conquering this obstacle.
It’s important to get two things straight:
Consistency: The same trademark should be recognizable across the layouts of mobile applications, websites, and physical stores. Customers may seamlessly transition between online and offline platforms because familiarity promotes comfort.
Inventory control: Customers should feel empowered to verify a product’s availability at their neighborhood store, make a reservation, or ask for home delivery when they see it online. This is a difficult one to get right, but it becomes much simpler if you work with the appropriate omnichannel fulfillment partner.
Unpredictable customer expectations
In the physical world, consumers’ expectations are dynamic and often unpredictable. One-day, two-day delivery can be the main priority, and the next, clients might want more environmentally friendly corporate procedures.
Having a robust consumer feedback channel is essential to staying ahead of these evolving demands.
Customer interviews, social media listening tools, and surveys can all offer insightful information about what the needs and wants of your customers are. The phygital experience can then be developed and improved according to these observations.
3 Phygital Commerce Examples
Marks & Spencer’s AR App Guides In-Store Shopping
Source: https://www.retailgazette.co.uk/
Consumers at the British shop Marks & Spencer can now receive tailored advice directly related to their preferred products. Customers can locate products on their shopping list on an on-screen trail created by the store’s List&Go app using augmented reality (AR), right down to the item’s precise location on the shelf.
Panera Bread Palm-Scanning Technology Creates Quick Payments
Panera recently revealed that certain locations will be using new palm-scanning equipment. When customers arrive, their handprints are scanned, bringing up their order history and name. Customers can see recommended things they might appreciate, and employees can greet them by name. Customers scan again for contactless payments as they go.
Toyota Uses AR to Streamline Car Customization
Toyota launched an augmented reality solution that uses the camera to identify a customer’s car and add virtual accessories, allowing consumers to modify their vehicles and trial new extras. The technology gives customers more confidence when buying cars because they aren’t constrained by what is in stock or uncertain about how parts fit together.
How Appic Softwares Can Help You Include Phygital Commerce In Your Store?
Appic Softwares has an experienced team of developers that has previously helped several clients create a Phygital experience for their store. Being a leading ecommerce development company, we will ensure that while the phygital development is going on, your store is not down.
Moreover, you can even hire developers from us and let them manage your store.
So, what are you waiting for?
