Understand and develop an effective phygital strategy

Physical commerce continues to attract customers and should not be put in the background, but it must nevertheless be constantly reinventing itself to meet the expectations and new habits of consumers. More and more of them are turning to e-commerce. The phygital is a combination of the physical and digital world, transforming the customer experience and addressing important issues such as consumer engagement. Businesses today need to implement an effective phygital strategy to develop their business.

What is phygital?

Combining the physical and virtual world, phygital resonates as the promise of a unified and personalized customer experience. This commercial and marketing strategy aims to integrate a digital journey into the consumer's traditional buying journey (at a physical point of sale). By merging online and offline shopping experiences, businesses create an improved and consistent customer experience. The aim is to optimize consumer engagement and improve overall business performance.

The challenges of phygital trade

The health crisis has accelerated the digitalization of purchases. In particular, it forced consumers to abandon physical spaces. Retailers are now busy with a question: will customers find their way back to their retail spaces? One of the virtues of any crisis is to encourage movement. Retail, which has been tried and tested in recent months, can benefit from a new impetus, to the benefit of the customer experience.

Meeting the expectations of consumers who are looking for a more fluid, interactive and personalized shopping experience, building customer loyalty, increasing their average basket: these are all objectives that phygital can meet. Phygital commerce represents a major evolution for consumers and is greatly changing the way they interact with brands. It foreshadows a journey where the frictions between the virtual and the physical are abolished. However, this customer-centric approach requires consistent information on all channels.

Phygital offers a more rewarding and engaging shopping experience. Thanks to his interactive character, the consumer actively participates in their buying journey, seeking information, comparing products and services, receiving personalized advice, interacting with sellers or other consumers. In this way, phygital promotes stronger consumer engagement with the brand.

In addition, the integration of technology into physical commerce makes it possible tooffer more personalized services and adapted to the specific needs of each consumer. The data collected online makes it possible to refine the offer according to the preferences and buying behaviors of each individual, thus improving their satisfaction and brand loyalty.

Of course, the physical aspect is still very important in the buying process. He brings a sensory dimension that digital technology cannot completely replace. Product testing, personal advice, or contact with salespeople remain key aspects of the buying experience. Phygital trading therefore offers a more complete experience. and adapted to the changing expectations of the modern consumer.

How to implement an effective phygital strategy?

Digital technology at the service of phygital strategy

A simplistic, even erroneous, conception of phygitalization remains. It is not enough to disseminate digital tools in physical environments to ensure an omnichannel journey. It is not only the point of sale that must be digitized, but the entire customer relationship.

Phygitalization involvesembedding digital devices within physical stores to make the customer journey really smooth. This means homogenizing data from different sources and messages at each stage of the customer journey.

An omnichannel strategy for phygital commerce

Retailers have understood this. La data has become the black gold of their business, provided that raw data is transformed into relevant information. Omnichannel solutions, based on Internet of Things (IoT) technologies, make it possible to take full advantage of this wealth of information. The benefits are multiple and tangible. In the first place, strengthen and better exploit customer knowledge.

The ability to crossing 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 a difference.

Such a fashion brand would be in a position, for example, to highlight its raincoats on dynamic screens when rain is forecast. At the same time, she would inform a customer who passed by the store by SMS that a flash sale of raincoats is in progress, while telling her that she still has her size!

The tools for a successful phygital strategy

Today, there are many digital tools to implement an effective phygital strategy: online reservation, Click & Collect, interactive terminals, mobile applications, online payment... The Internet of Things (IoT) and digital signage represent particularly innovative and effective tools for merging digital and physical worlds in order 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 the implementation of phygital strategies, where the border between physical reality and the digital world is erased through the use of new technologies. Indeed, IoT allows a fluid and constant interaction between these two dimensions, thus improving the customer experience and Boosting points of sale.

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

Digital signage is 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 rightful place.

Automatic data recovery is the keystone of communication on screens. Digital signage solutions can connect to a variety of data sources. For example, these are web pages, data feeds, Instagram, CRM, or even weather information.

Digital screens Communication agents can deliver to customers updated information in real time and geolocated. Dynamic content supports the omnichannel strategy perfectly. They support a customer interaction model that is based on a principle that is now well known to all: deliver the right message, to the right person and at the right time. They stand out as the vectors of the most sophisticated marketing scenarios, based on contextualized data.

Such a fashion brand would be in a position, for example, to highlight its raincoats on dynamic screens when rain is forecast. At the same time, she would inform a customer who passed by the store by SMS that a flash sale of raincoats is in progress, while telling her that she still has her size! It is also possible, based on the information collected on the brand's website, to highlight in store on digital screens the most viewed items online and thus speed up the process of purchase.