The Phygital Experience concept refers to a new retail trend that combines online and physical commerce for the benefit of consumers (Physical + Digital = Phygital). This phygital experience integrates the best elements of each form of sales, aiming to improve the customer’s shopping experience by making it more immediate and efficient. This combines things like the immediacy of the Internet with human interaction, and the personal touch which is possible in brick-and-mortar stores.
The idea evolved from data such as those collected by Selligent’s global study “Selligent Global Connected Consumer Index (Third Edition)”. The data demonstrate that despite significant growth in e-commerce, more than 40% of European and American consumers alternate between both purchasing modes depending on their needs or desires at the time. We explain the key points for providing a phygital experience and how to increase your company’s profitability with competitive prices.
Features of the Phygital Experience
Creating an experience that combines the best aspects of digital and physical retail is based on three key factors:
1.-Immediacy in shopping
Sellers and brands should seek to make purchases as immediate as possible, both via the web and in brick-and-mortar stores. If you want to achieve this, the first step would be to simplify the purchase process with:
- Simpler payment gateways and check out pages on e-commerce sites.
- Implementation of mobile device payments and self-service tills in physical stores.
2.- Interaction with users
It is also essential to facilitate seamless communication with users to trigger the emotional element associated with traditional commerce. The way to achieve this is through omnicanality, i.e., using multiple channels to keep in touch with the brand’s fans. Combining the web, social media, different advertising formats, etc., will allow you to share information with your customers and keep them central to your actions.
3.- Constant innovation
Technological innovation and implementing new retail trends must be part of your everyday routine as a seller to meet the needs of these customers seeking phygital experiences. As with the previous points, this applies to brick-and-mortar stores and e-commerce sites. For example, you can install self-service screens, tablets to confirm stock availability, or even robots to guide consumers. With the advent of the metaverse, people are starting to talk about virtual stores, accessed with your avatar, as if it were a local store.
Ultimately, the aim is to achieve greater customer engagement with the brand, to help them feel connected with the business and happy with their shopping experience. A fast-growing example of this Phygital Experience is Amazon Go Supermarket. In these stores, buyers gain access with a code on their smartphone, pick up the items they need, and leave without having to stop at tills. The whole process is done via mobile, making it faster and more efficient.
By investing in technology, an e-commerce company is able to provide a Phygital Experience which can benefit the business by leading to sales growth and better competitive positioning. If you’re considering taking the next step in your company’s digital transformation, start by analysing the strategy of other companies in your sector and direct competitors’ prices. Then you can identify potential business opportunities and design the best pricing strategy to avoid losses at this new stage while maintaining a high level of loyalty.