What is Phygital in retail?
The way businesses are perceived by the consumers has greatly evolved in the last few decades, owing to the introduction of digital technology in the corporate ecosystem.
Now, evidently, all the more customers prefer ease and comfort in their purchase experience and the term “phygital” has crawled out of a need to see through these expectations and provide a new age method which is both interactive and efficient.
What is Phygital in Retail? Defining the Concept
It is paramount to establish that phygital retail is a strategic inclusion of both digital and physical, that is, tangible and intangible aspects. Does that mean a retailer needs to have a brick-and-mortar store to realise this phygital capability? That’s a no go. It is an authentic approach towards materialising the conditions to serve the consumer.
An instance of phygital transformation in retail could be seen in the use of augmented reality by brands that sell products customers often times want to try out first to provide virtual-trials. Therefore, the concept of phygital in retail is creative and innovative that seeks to drift away from the traditional to follow the future.
What is Phygital in Retail? Enhancing Customer Engagement
Although it focuses on uplifting the business by incorporating multiple elements, the primary factor remains the customer behaviour. The demands, upfront or latent, account for the evolution of the business. Various researches, data, statistics come into the field. Advanced customer engagement is the lifeblood of a thriving retail business.
Phygital retail enables a business to stay connected with a customer at every crucial point of their purchase. The technology that enables this comes in the form of mobile apps, QR codes, and RFID tags. Virtual trial rooms and fully automated stores (for example, amazon fresh) are breathing examples of a well-established phygital environment.
What is Phygital in Retail: Transforming the Shopping Experience
The human values and belief grids hold the crux of understanding and transforming the business to cater the consumers. It is known that we tend to favour the tangible, physical nature of lives and sometimes the experience of shopping is seen as a pleasant memory.
In accordance of sentiments and convenience, phygital retail allows customers to purchase on their own terms with features such as click-and-collect and buy online, pick up in-store (BOPIS).
What is Phygital in Retail? Driving Sales and Loyalty
Phygital retail is, in its essence, an evolutionary method in business growth. It’s a customer-oriented approach at the end of the day, which also spikes the sales charts and harbours loyalty.
The use of interactive kiosks, RFID tags, mobile apps, the convenience and experience are enriched but the data collected through these digital sources allows businesses to bring in new ideas and correct any flaws. It allows them to have a statistical bird eye view in form of constructive criticism.
What is Phygital in Retail? Future Implications and Opportunities
With the advent of artificial intelligence integrated technology, phygital retail will flourish in the future as well. AI enables a new degree of phygital customisation for the consumers with chatbots, personalised recommendations and an overall improved experience that is unique for each customer. It also generates new ways of marketing as in the form of NFT wearables that avatars can carry in the digital realm which is a cutting-edge notion with the introduction of the likes of Metaverse and Apple’s MR device, Vision Pro.
It goes without saying that the future looms largely on the advancement of technology and phygital retail is a way to transform businesses ready for this uptake of a whole new world.
Phygital in retail symbolizes a paradigm shift in how customers shop and connect with brands. By seamlessly integrating physical and digital aspects, merchants can create immersive and personalised shopping experiences that increase engagement, sales, and loyalty. As the retail market evolves, adopting Phygital tactics will be critical to remaining competitive and addressing the ever-changing needs of today's consumers.
So, what exactly does Phygital mean in retail? It's more than a trend; it's the future of retail, influencing how we purchase and experience businesses in the digital age and beyond.