Businesses have always had to innovate and rethink their approaches to remain relevant, and this is even more true in the digital age.
Whether the goal is to enhance customer experience or optimize omnichannel strategy, many companies are increasingly integrating digital tools into their physical retail spaces to achieve these aims. This phenomenon is known as phygitalization.
Thirdbridge has been interested in phygitalization for several years, collaborating on projects, with a global retail giant, to push the boundaries of customer experience through integrated digital tools. These initiatives have not only improved client satisfaction and loyalty but also delivered personalized and seamless experiences that meet the evolving needs of the modern market.
What is Phygital?
The term "Phygital" refers to the digitalization of a physical point of sale: merging online and offline experiences to offer customers a more seamless and enriched experience. This trend has disrupted the retail world and has been accelerated by factors such as the pandemic.
Examples of phygital tools include touch-screen kiosks for self-service ordering and price-checking devices that allow customers to view item costs.
By integrating these innovative technological tools into a retail environment, businesses can provide customers with a more interactive, personalized, and efficient experience. According to SurveyMonkey survey (April 2023), 32% of retailers declared implementing new customer experience-enhancing tools as a top priority.
Benefits of this strategy:
1- Boosting the visit to a physical store:
The phygital strategy aims to revitalize and animate physical stores by integrating technologies liked by consumers. According to a study, 35% of Canadian consumers believe that adopting self-checkout machines would encourage them to shop in-store. Additionally, 34% are motivated by mobile or contactless payments, and 30% find digital labels or QR codes offering additional product information appealing. These simple elements contribute to consumer autonomy in the purchasing process, enhancing the overall shopping experience.
2- An optimized customer experience:
It is crucial to recognize the synergy between online and offline environments and their influence on the customer experience that brands aim to deliver. By ensuring a smooth transition between digital and physical environments in the customer journey, businesses can facilitate and accelerate conversions. This approach involves maintaining consistency across channels, simplifying interactions, and enhancing store visits through digital means. It enables customers to leverage the benefits of each channel, contributing to an optimal phygital customer experience that adapts to their buying preferences.
3- Time Efficiency:
Digitalizing retail points of sale allows consumers to save significant time during their shopping experiences, thereby enhancing their overall satisfaction. Adopting an omnichannel approach strengthens brand presence while reducing friction points, minimizing the time required to complete transactions.
Statistics reveal various factors that can lead to a poor in-store experience, including checkout wait times (46% of respondents), pricing errors or absence (44%), out-of-stock items (37%), difficulty finding products on shelves (36%), interaction with salespeople (31%), store layout (28%), lack of product information (21%), and challenges with parking availability (16%).
However, adopting phygital solutions such as interactive kiosks for product information and quick price checks, as well as various ordering methods like self-service kiosks, click-and-collect, and mobile payment apps, allows brands to significantly enhance the customer experience before, during, and after transactions.
The phygital strategy represents a major revolution in the retail industry. By integrating innovative phygital solutions, brands can not only optimize operational efficiency but also transform and enrich the customer experience, providing smoother transactions and increased satisfaction at every stage of the shopping journey.
Thirdbridge is proud to contribute to this shift in shopping habits. By pushing the boundaries of customer experience through digital tools, we help our clients navigate and excel in an ever-evolving market. Phygital strategy is not just a trend; it is the future of retail, and we are pleased to be part of it.
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