Understanding and developing an effective phygital strategy

Physical commerce continues to attract customers and should not be relegated to the background, but it must constantly reinvent itself to meet consumers' expectations and new habits. More and more of them are turning to e-commerce. Phygital is a combination of the physical and digital worlds, transforming the customer experience and tackling important issues such as consumer engagement. Companies today need to implement an effective phygital strategy to develop their business. 

What is phygital?

Combining the physical and virtual worlds, phygital is the promise of a unified, personalized customer experience. This commercial and marketing strategy aims to integrate a digital pathway into the consumer's traditional (physical point-of-sale) purchasing journey. By merging online and offline purchasing experiences, companies create an enhanced, coherent customer experience. The aim is to optimize consumer engagement and improve overall business performance.

The challenges of phygital commerce

The health crisis has accelerated the digitalization of purchasing. In particular, it has forced consumers to abandon physical outlets. The question now on retailers' minds is: will customers return to their points of sale? One of the virtues of any crisis is to encourage movement. Retail, tried and tested in recent months, can benefit from a new impetus, for the benefit of the customer experience. 

Responding to consumers' expectations for a more fluid, interactive and personalized shopping experience, building loyalty and increasing the average shopping basket: these are just some of the objectives to which phygital can respond. Phygital commerce represents a major evolution for consumers, greatly changing the way they interact with brands. It prefigures a journey where the friction between the virtual and the physical is abolished. However, this customer-centric approach requires information to be consistent across all channels. all channels.

Phygital offers a more enriching and engaging shopping experience. Thanks to its interactive nature, consumers actively participate in their purchasing journey, searching for information, comparing products and services, receiving personalized advice, interacting with salespeople or other consumers. In this way, phygital encourages greater consumer engagement with the brand.

Moreover, the integration of technology into physical commerce enables us tooffer more personalized services, tailored to the specific needs of each consumer. The data collected online can be used to fine-tune the offer according to each individual's preferences and purchasing behavior, thus improving brand satisfaction and loyalty. 

Of course, the physical aspect retains all its importance in the purchasing process. It provides a sensory dimension that digital technology cannot totally replace. Product trials, personalized advice and contact with sales staff remain key aspects of the shopping experience. Phygital commerce thus offers a more complete experience, adapted to the changing expectations of the modern consumer.

How do you set up an effective phygital strategy?

Digital technology at service for a phygital strategy

A simplistic, even erroneous conception of phygitalization remains. It's not enough to spread digital tools across physical environments to ensure an omnichannel customer experience. It's not just the point of sale that needs to be digitalized, but the entire customer relationship.

Phygitalization involvesinterweaving digital devices within physical retail outlets to make the customer journey truly seamless. This involves homogenizing data from different sources and messages at each stage of the customer journey.

An omnichannel strategy for phygital commerce

Retailers have understood this. Data has become the black gold of their business, provided they can transform raw data into relevant information. Omnichannel solutions, based on Internet of Things (IoT) technologies, enable retailers to take full advantage of this wealth of information. The benefits are multiple and tangible. First and foremost, customer knowledge can be enhanced and better exploited. 

The ability to cross-reference digital and physical paths provides a better understanding of customer behavior. This knowledge makes it possible to adapt offers and messages. In an economy marked by mass production, personalization can make all the difference. 

A fashion retailer, for example, would highlight its raincoats on dynamic screens when rain is forecast. At the same time, a customer passing by the store would be informed by SMS that a flash sale of raincoats was underway, while being told that her size was still available!

Tools for a successful phygital strategy

Today, there are many digital tools available to implement an effective phygital strategy: online booking, Click & Collect, interactive kiosks, mobile application, online payment... The Internet of Things (IoT) and digital signage represent particularly innovative and effective tools for merging the digital and physical worlds to optimize the customer experience.

Digital transformation through the Internet of Things

The Internet of Things (IoT) is proving to be an essential tool for implementing phygital strategies, where the boundary between physical reality and the digital world is blurred through the use of new technologies. Indeed, the IoT enables fluid, constant interaction between these two dimensions, enhancing the customer experience and energizing points of sale.

For example, connected objects can collect real-time data on user behavior and preferences, providing valuable information that can be used to optimize and personalize offers. What's more, the IoT can also be used to improve service after-sales, thanks to predictive maintenance. Connected devices can also help to create more interactive and immersive shopping environments in stores, thanks to elements such as digital signage, connected mirrors, virtual fitting rooms, etc. 

Digital signage on the rise

Digital signage is a powerful lever for a phygital strategy. Connected and intelligent, screen-based communication devices help retailers take full advantage of data and customer knowledge to give phygital its credentials.

Automatic data retrieval is the cornerstone of screen-based communication. Digital signage solutions can connect to a variety of data sources. These include web pages, data feeds, Instagram, CRM and weather information. 

Digital communication screens can deliver real-time, geolocated information to customers. Dynamic content is the perfect vehicle for an omnichannel strategy. They support a customer interaction model based on a principle that is now universally recognized: deliver the right message, to the right person, at the right time. They are the vehicles for the most sophisticated marketing scenarios, based on contextualized data. 

A fashion retailer, for example, would be able to highlight its raincoats on dynamic screens when rain is forecast. At the same time, a customer passing by the store would be informed by SMS that a flash sale of raincoats was underway, while being told that she still had her size left! It is also possible, using information collected on the brand's website, to highlight in-store on digital screens the items most frequently consulted online, thus speeding up the purchasing process.

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