“It’s a myth that physical stores are not growing. Digital and physical worlds are growing hand in hand”
According to a study around 82% of millennials prefer to shop brands with physical stores, and 80% of Gen Z look forward to online shopping. So, what’s the solution?
It`s phygital marketing!
Through incorporating phygital marketing strategies, it becomes easy for the brands to provide customers the experience they desire!
What is Phygital Marketing?
The word phygital itself means physical+digital. Hence, phygital marketing is a blended customer experience where digital applications relate to the physical world and the actual space of the customer journey. Phygital marketing is about finding interesting ways to merge the two worlds together.
Most often, phygital experiences are immersive, interactive, and real-time that offer immediate engagement. It is a fact that many consumers will feel more connected to a brand when their five senses are activated, rather than just clicking through a site or reading a newsletter. In many cases, this means augmenting an existing or a traditional idea with new technologies.
Nike- a great phygital marketing example, uses customer data to tailor and create a physical outlet to the needs of customers of a specific demographic.
Implementing phygital marketing incorporates these two powerful trends in customer shopping:
Letting customers examine, research, and create a review of the product online for best deals.
Customers can look up and test products in-store before buying.
Further, phygital marketing can be described as an approach where all marketing channels work together, in unity, to provide customers a completely seamless experience. The main idea behind combining the physical and digital experience is to draw the best from both worlds, and the ultimate goal is to give shoppers a unique, highly-personalized experience that will leave a lasting impression on the minds of people.
Real-Life Phygital Marketing Examples
Phygital marketing strategies are widely embraced by many brands and companies. These include in-store experiences that provoke online ordering and vice versa. It starts by changing the view and way you look at the customer journey. To support a rather seamless customer journey where customers bounce back and forth between online and in-store touchpoints, it is important for brands to incorporate both digital and physical data in their CRM systems.
Businesses use the best of phygital marketing by incorporating automation, artificial intelligence, augmented reality, and other digital technologies into showrooms that blur the division of physical and digital realms and take customer experience to a whole new level. Phygital marketing strategies can help you enhance the physical experience of your customers by augmenting it with digital experience.
Let’s have a look at examples of phygital marketing by retail businesses and other sectors that achieved a lot by embracing phygital marketing strategies.
Amazon Go Phygital Marketing
Amazon has introduced a number of Amazon Go stores across the U.S. well equipped with an app that allows customers to buy whatever they need without having to check out. They have introduced a virtual cart connected to the customer’s Amazon account, which identifies customers and products and automatically charges the bill to the account when they leave. No check-out required, no lines, no queues, and no waiting!
In China, phygital marketing strategies are widely opted by retailers which makes it easier for customers to bounce back and forth between physical and digital worlds with unprecedented ease and flexibility. Retail stores are using a combination of AI and facial recognition to give customers ultra-personalized offers and letting them pay without taking out their wallet, removing any smidge of inconvenience and redundancies for consumers.
The Sephora pop-up store in augmented reality
Another great phygital marketing example: Sephora designed a dedicated, wickedly enticing, pop-up store based on augmented reality. Easily Accessible from any smartphone or tablet, the outlet subtly draws out a customer’s latent vanity, cosmetics, beauty products, and fragrances to new heights creating a magical experience for customers.
Sephora’s application displays a portal anytime, anywhere, and is a true gateway to the brand’s landscape. Customers can browse through products, touch and unwrap them, read their descriptions, and even use them virtually. This application offers an unmatched level of immersion for customers along with the environment and products provided in a 3D experience that borders on reality.
Phygital Marketing Domains
Be it a micro-scale business or a large-scale business, there are lots of ways that can be used by brands to make most of the phygital marketing when choosing their strategies.
Facebook, Instagram, and other social media platforms have made it easy for vendors to add a digital storefront to their business. Both Facebook and Instagram offer eCommerce features where stores can sell their products to customers online.
Utilizing Social media efficiently as a phygital marketing strategy will allow brands and their stores to promote special deals, run ad campaigns, or even create customer loyalty programs. This will not only boost their brand but will also increase their reach and engagement. These can be very well handled by social media marketing services. Further, Rewarding those customers who engage with brands on social media is one way of digitally connecting. Using social media to promote opt-in offers where customers can comment on a post offering a special deal and later pick it up from in-store, is yet another example of blending physical and digital marketing.
Creating a pop- up store for an online business is another way of adding a physical experience to the product offering.
Think about how online vendors have stands at local markets, which is considered an entry-level of phygital marketing strategy. By using the customer data that is generated through the online business, brands will have an exact idea where their loyal customers are and they can set up a pop0up store nearby.
To take this phygital strategy to the next level, brands could find a way to bring technology to the pop-up store and let customers engage with their physical product and their online inventory at the same time.
Content Is At The Centre Of Phygital Marketing
To make the most of phygital marketing, it is important that the outreach be useful as well as highly engaging. The ultimate Phygital marketing strategy would be one that combines entertainment, data, and content. User-generated content on Facebook has shown to generate conversions that are up to 40% higher than the industry average. Therefore, for big purchases, customers often showroom the item, then read reviews and make their purchase later online. Content provides entertainment value and even helps customers with decision-making. The most compelling and engaging digitally delivered content is still created in the physical area. From social tools such as Instagram and Snapchat, where the capture of the instant is physical, to QR codes on ads, on concert tickets, or onboarding passes, that enable the physical data to be digital.
From ordering online to pre-ordering online
Introduce the system of pre-ordering on the digital store. E-commerce has encouraged online ordering, but today, customers are increasingly adopting the “Click and Collect” model that is of a web-to-store logic: where customer pre-orders are placed online in the shop, while purchases are being collected at the counter.
Reduction in queues:
The shares of online purchases have increased, and this bought a change in habits which makes consumers run out of patience when having to queue up. According to LSA-Conso, 89% of visitors already leave a store because of the queues that they consider to be too long. To shrink this waiting time, self-service and mobile checkouts have already proved their worth.
By using phygital marketing strategies brands can create applications that include budget management features, digital coupons, a loyalty card, and much more. In short, phygital marketing services digitizes stores to deliver a fast, seamless, and optimized purchase experience at the checkout counter.
Brands who want to succeed long term must take the phygital marketing strategies, no compromise seriously, providing the best of both worlds. With demands and competition in both spaces higher than ever before, seamless integration is a priority.
The Email Rewards
Brands should use their mailing list cleverly. When an app or email offers a physical reward, you hit the phygital marketing nail on the head. Customers must interact with the brand in a digital way in order to get a physical reward. This can turn the other way round as well by asking customers at in-store to give their email address and they will get a digital award waiting in their inbox.
This is a great way to both grow business and create brand loyalty through a phygital marketing strategy. Need help with your phygital marketing needs? Let us handle the laborious task of conjoining the digital and the physical world!