In the era Digitale Today, consumers are navigating between the physical and digital world, creating more and more buying journeys hybrids. It is in this context that the concept of “phygital” emerged, an innovative synthesis of physical and digital experiences.
The term “phygital”, a fusion of “physical” and “digital”, refers to a marketing strategy aimed at harmonizing these two worlds to offer a fluid, immersive and engaging customer experience.
This approach responds to the reality of modern consumers, who interact with brands through various channels : social networks, search engines, websites or physical points of sale. By exploiting this hybridization, businesses can improve customer satisfaction, boost sales, and build loyalty.
In this article, we'll detail phygital technologies, their benefits, limitations, and key steps for a successful strategy, while exploring what trends to watch out for.
What is phygital?
Origin and definition of the phygital experience
The term “phygital” is a contraction of the words “physical” and “digital”, illustrating a harmonious fusion between physical and digital experiences. This approach was born in a context where consumers are constantly evolving between the real world and the digital world, and where they expect smooth transitions and consistent interactions between these two worlds.
The phygital experience seeks to offer immersive and personalized interactions, often thanks to advanced technologies such as Augmented reality, the vr and QR codes, which enrich the customer journey.
The challenges of phygital in an omnichannel world
In a world where strategies Omnichannel and multichannel have become the norm, phygital is distinguished by its emphasis on the integration of physical and digital experiences. This approach aims to offer a unique and consistent customer experience. While omnichannel focuses on a unified and personalized experience across all communication channels, phygital focuses on creating a solid connection between online and offline interactions.
Thanks to this integration, brands can meet the expectations of consumers who want to interact in a way fluid and Immersive with their products and services, whether online or in physical stores.
Phygital vs omnichannel vs multichannel: key distinctions
It is essential to differentiate phygital from omnichannel and multi-channel strategies, although these three concepts aim to improve the customer experience. Omnichannel integrates all communication channels to offer an experience unified and coherent, while multichannel uses multiple channels independently, which can sometimes lead to disjointed experiences.
Phygital, on the other hand, focuses on smelting physical and digital experiences. By relying on innovative technologies, it makes it possible to create interactions Immersive and personalized. Unlike omnichannel and multi-channel, which focus on consistency and personalization across multiple channels, phygital harmonizes interactions between the physical and digital worlds.
Why is phygital crucial for brands?
Create a seamless customer experience between physical and digital
The Phygital is essential for brands because it allows them to create a customer experience fluid and coherent between the physical and digital worlds. By integrating technologies such as QR codes, the NFC tags And the Augmented reality, brands provide consumers with a seamless transition between online and offline interactions.
For example, in a physical store, touch screens or QR codes can be used to allow customers to access product recommendations or detailed information about items on sale. This significantly improves the buying journey and increases customer satisfaction.
Using holograms to reinforce the impact of a phygital strategy
Among the most spectacular phygital tools, holograms. In particular via holographic fans. Impose themselves as powerful levers to capture attention and make an impression. These devices make it possible to display 3D content floating in the air, visible to the naked eye without glasses or screens. At the point of sale, on a stand or in the window, they create a striking visual effect which naturally attracts passers-by, encourages stopping, and significantly increases the engagement rate.
Thanks to their innovative nature, holograms add strong emotional dimension to the customer experience while promoting the brand image. They are particularly effective for presenting a product, a promotional message or a narrative animation in a retail or event setting, with an excellent visual return on investment.
Strengthen engagement and loyalty
Phygital plays a key role in strengthening theinvolvement And of the Loyalty customers. By offering immersive and personalized experiences, brands create memorable moments that establish a strong emotional connection between customers and the brand.
Initiatives such as virtual trials, interactive games or location-based promotions keep customers engaged while increasing the chances of them coming back. This approach also helps to build relationships of trust And of Loyalty, essential elements to guarantee the long-term success of a brand.
Generate rich data to better personalize
Phygital is also important for brands because it allows them to generate rich data and detailed about their customers. By combining multiple communication channels, brands can gather valuable information about preferences, consumer behaviors and feedback.
This data can be used to personalize customer experiences, optimize marketing campaigns, and identify business strengths and areas for improvement. This ability to collect and analyze data allows brands to make informed decisions and better meet the expectations of their customers.
The main phygital technologies
Interactive terminals, QR codes and NFC tags
Les interactive terminals, the QR codes and NFC tags are essential phygital technologies that facilitate the transition between physical and digital experiences. Interactive kiosks, often equipped with touch screens, allow customers to search for products, access detailed information, and even make purchases directly in-store.
QR codes offer a method quick and easy for customers to scan and access additional content, such as promotions, product videos, or websites, thus connecting the physical world to the digital world. As for NFC (Near Field Communication) tags, they allow contactless interaction between devices, simplifying data transfer. By integrating NFC tags into signatures or products, businesses are offering customers a immersive experience and interactive, allowing them to retrieve information or participate in promotional campaigns with a simple tap on their smartphone.
Augmented reality, virtual mirrors and connected cabins
La Augmented reality (RA), virtual mirrors, and connected cabins are advanced phygital technologies that are revolutionizing the customer experience. Augmented reality allows digital content to be superimposed on the real world, offering customers the opportunity to virtually try on products, such as clothing or furniture, before buying them. This technology significantly improves the decision-making process and reinforces customer engagement.
Les virtual mirrors and connected booths offer an immersive virtual test experience, allowing customers to visualize how products would work for them without having to physically try them on. These technologies are particularly useful in the fashion and beauty industries, where the trial experience is essential for customer satisfaction.
Mobile applications, contactless payment and in-store geolocation
Les mobile applications, contactless payment and in-store geolocation are essential elements of the phygital strategy. Mobile applications allow customers to navigate retail locations more efficiently, by accessing product information, receiving personalized promotions, and by using navigation features to find specific items in-store.
These applications can also integrate mobile payment functionalities, thus simplifying the transaction process. The Contactless payment, often facilitated by NFC technologies, allows customers to pay for purchases quickly and securely, reducing wait times and improving the overall experience.
Finally, the in-store geolocation allows businesses to target customers with personalized offers based on their location, increasing engagement and sales.
Concrete use cases by sector
Retail: virtual try-on and personalized navigation
In the retail sector, the Phygital is manifested in several innovative ways. One of the most striking examples is thevirtual tryout.
Brands like ikea and Lululemon use augmented reality (AR) and virtual reality (VR) to allow customers to visualize products in their real environment or in virtual scenarios. For example, Lululemon offers an immersive VR experience in its flagship stores, where customers can virtually try on yoga clothing in a variety of environments.
In addition, stores like Undiz in Toulouse and Timberland in New York have set up touch terminals and kiosks that allow customers to navigate the online catalog, view detailed product information, and even order items stored in reserve for a almost instant delivery.
Today, some brands are going even further by integrating holographic technologies Like the holographic fans in their retail spaces. These devices make it possible to display floating 3D visuals to capture attention, highlight a product or enrich the brand universe without using conventional screens.
Banking & insurance: hybrid counters and chatbots in branches
In the banking and insurance sector, the Phygital is transforming the way customers interact with financial services. Les Hybrid counters, which combine human interactions with digital technologies, allow customers to carry out complex transactions more efficiently.
For example, some banks use automated kiosks for routine transactions, while having advisors available for more complex questions. Les Chatbots in agencies are another example of phygitalization. These automated chat tools help customers get quick answers to their common questions, freeing up human agents to focus on more specialized tasks and to high added value.
Health & beauty: digital diagnosis and connected customer follow-up
In the health and beauty sector, the Phygital significantly improves the customer experience and the follow-up of care. Les digital diagnostics, such as teleconsultation applications and online diagnostic tools, allow patients to receive medical advice without requiring a physical visit.
In addition, connected customer tracking systems, such as Wearables and health applications, help healthcare professionals monitor patients on an ongoing basis and adjust treatments accordingly. Beauty salons can also use phygital technologies to offer virtual consultations and personalized product recommendations, improving customer experiences and increasing loyalty.
Events & lounges: digital check-in and immersive experiences
In events and fairs, the Phygital is revolutionizing the way participants interact with events. The Digital check-in, facilitated by QR codes and mobile applications, allows for quick and efficient registration and reception, reducing queues and improving the overall experience.
Les immersive experiences, such as augmented and virtual realities, are also used to create interactive and engaging environments. For example, exhibitions and trade shows can use AR to provide detailed information about the products or works on display, enriching the visitor experience.
Catering: order terminals, QR menus and online loyalty
In the sector of restoring, the Phygital revolutionizes the customer experience by making it simpler and more personalized. The order terminals as well as the QR menus offer customers the possibility to order their meals in standalone and fast. This greatly reduces the waiting time while optimizing the efficiency of the service.
In addition, the online loyalty programs, often integrated into restaurant mobile applications, offer rewards and promotions tailored to customer preferences. These initiatives encourage consumers to come back regularly and share their experiences with those around them, thus strengthening the reputation and clientele of establishments.
Advantages and limitations of phygital
For customers: flexibility, transparency, immersion
The Phygital offers numerous advantages for customers. First of all, it provides a flexibility increased in the buying process.
Customers can easily navigate between physical and digital experiences according to their preferences. Thanks to services like the Click and Collect, the Store Locator or online reservations, they optimize their time and comfort. In addition, phygital guarantees a transparency reinforced in interactions with brands.
Customers have access to detailed, real-time information on products, inventory, and promotions. It improves their trust and their satisfaction. For example, interactive kiosks and touch screens in stores allow you to consult inventory and check inventory directly, reducing the frustrations associated with product availability.
Finally, phygital offers increased immersion in the customer experience. Technologies like Augmented reality and virtual reality allow customers to have interactive and memorable experiences, strengthening their involvement and their loyalty to the brand.
For businesses: data collection, ROI, skills development
On the business side, phygital offers several strategic advantages. One of the main benefits is data collection enriched.
In-store digital installations make it possible to capture, store, and analyze customer preferences and buying habits. This improves the relevance of the recommendations and reinforces the customer knowledge. In addition, phygital can generate a return on investment (ROI) significant.
By optimizing processes and reducing waste and operational expenses, businesses can use their resources more efficiently. Automating and optimizing workflows helps to reduce costs while increasing operational efficiency.
Phygital also promotes Increase in skills employees. Integrating advanced technologies requires training staff to manage and maintain these systems. This improves the skills and employee productivity, which is beneficial for the business in the long run.
Obstacles: technological costs, training, data security
Despite its numerous benefits, phygital also has some obstacles. One of the main challenges lies in technological costs related to the establishment and maintenance of phygital systems.
The initial investment in digital infrastructure, software, and hardware can be high, which is a barrier for some businesses. La training of staff is another major obstacle. For phygital to work effectively, employees need to be trained to use and manage new technologies, which may require additional resources and time.
Finally, the data security is a key concern. With the collection and analysis of vast amounts of customer data, businesses need to put robust measures in place to protect that information from cybersecurity threats. They must also respect the regulations in terms of the protection of personal data.
How to deploy a successful phygital strategy?
Key steps: diagnosis, prioritization, gradual deployment
To set up a phygital strategy effective, it is essential to follow a structured and methodical process. The first step is to make a global diagnosis of your point of sale and your market.
This involves understanding who your customers are, analyzing the competition and evaluating the potential available for phygitalization. This analysis makes it possible to precisely target needs and opportunities. Then it is necessary to map the customer journey current to identify touchpoints between online and in-store experiences.
This step is critical to identify gaps or frictions in the buying journey. You can also collect customer preferences and feedback through surveys, interviews, or focus groups. Once needs and opportunities have been identified, it becomes essential to define a clear strategy.
This includes setting specific goals: developing customers, building loyalty, increasing sales or renewing the brand image. The strategy must be adapted to the particularities of your business and your market.
Finally, the gradual deployment phygital solutions are fundamental. It is recommended that you start with pilot testing or limited deployments to assess the effectiveness of technologies and processes before generalizing them. This approach reduces risks and makes it possible to make the necessary adjustments based on the results obtained.
KPI to track: station usage rate, NPS, average basket, conversion
To assess the success of your phygital strategy, it is essential to monitor key performance indicators (KPIs) relevant. The rate of use of terminals and interactive tools reflects customer adoption and engagement. The Net Promoter Score (NPS) measures customer satisfaction and loyalty, while the average basket and conversion rate allow you to analyze the direct impact on sales and profitability.
These KPIs should be monitored regularly to adjust the strategy based on results and customer feedback. This ensures a dynamic and adaptive approach, allowing the phygital strategy to remain aligned with business goals and customer expectations.
Successful internal adoption: training, support, communication
The success of a phygital strategy is also based oninvolvement of internal teams. Employee training is essential for them to master new phygital technologies and processes.
This includes targeted training sessions, hands-on workshops, and ongoing support resources to help them take ownership of the tools and systems in place. Internal support and communication also play a key role.
It is important to maintain communication clear and transparent on the objectives, benefits and stages of phygitalization. Teams should be supported throughout the process through accessible feedback and support channels to address their questions and concerns.
Finally, encouraging the active participation of employees in the phygitalization process strengthens their involvement and their motivation, key elements in ensuring the long-term success of the strategy.
Phygital trends to watch
Artificial intelligence and point of sale recommendation
One of phygital tendencies the most promising to watch out for is the integration ofartificial intelligence (AI) at points of sale. Thanks to AI, product recommendations can be personalized in an ultra-targeted manner, by analyzing a variety of data such as purchase histories, social media interactions, and clicks on online ads. These recommendations, generated by sophisticated predictive models, significantly improve thecustomer experience and promote faster and better informed buying decisions.
Companies like Amazon and Sephora are already using AI-based recommendation systems, with impressive business results. For example, Amazon generates about 35% of its sales thanks to its hyper-personalized recommendation system, thus contributing to significant revenue growth.
Biometric payment and integrated digital wallets
The biometric payment And the integrated digital wallets are other phygital trends that are booming. These technologies allow for transactions that are both secure and fast, eliminating the need for credit cards or cash. Biometric payments, such as facial recognition or fingerprints, offer increased security while making the shopping experience smoother.
Digital wallets, integrated into mobile applications, simplify online and in-store transactions. They make the payment process more convenient for customers, especially in environments where the rapidity And the security are essential, such as supermarkets, restaurants, and retail stores.
Metavers and interactive avatars in stores
The metaverse And the interactive avatars are phygital innovations that could radically transform the customer experience. The metaverse, an immersive virtual universe, allows customers to connect and interact with simulated environments that replicate physical store experiences.
Interactive avatars, integrated into these environments, play a key role in guiding customers, answering their questions, and offering personalized recommendations in real time. These technologies offer brands a unique opportunity to create immersive and engaging experiences, thus strengthening the relationship between customer and brand.
In addition, they allow products and services to be tested virtually, reducing barriers between the physical and digital worlds. This paves the way for a new era of phygital interactions, where the customer is placed at the heart of innovation.
FAQ — Frequently asked questions about phygital
How to apply phygital in retail?
The application of Phygital in retail can be done in several ways. One of the most common approaches is to integrate interactive terminals and self-service kiosks in stores.
These tools allow customers to search for products, access detailed information, and even make purchases directly in the store. For example, brands like IKEA and Warby Parker use apps and kiosks to allow customers to create shopping lists and view products in 3D before you buy them.
Another method is the use of QR codes to provide additional product information, such as technical specifications, user reviews, and instructional videos. This enriches the in-store shopping experience and makes it easier to make decisions.
What tools should you use for a phygital event stand?
To create a phygital event stand, several tools can be implemented. Les QR codes and links to online content are particularly useful for providing detailed information about the products or services presented.
Les touch screens and interactive kiosks allow visitors to navigate catalogs, watch videos, and participate in interactive games or quizzes, improving engagement and immersion. The technologies of Augmented reality (AR) And of virtual reality (VR) can also be used to provide immersive and interactive experiences. For example, brands like Lush and Sephora use AR applications to allow customers to see how products would be right for them without physically trying them out.
Phygital in health: what technological solutions?
In the health sector, the Phygital can be applied through several technological solutions. Les teleconsultations and connected health monitoring platforms allow patients to receive medical advice and monitor their health status on an ongoing basis.
Les Wearables and connected health applications help healthcare professionals monitor patients and adjust treatments accordingly. Diagnostic kiosks in pharmacies or clinics can also provide rapid tests and preliminary diagnoses, referring patients to health professionals for further consultations if needed. These solutions improve the accessibility and efficiency of health care.
Phygital in banking: what are the benefits for customers?
In the banking sector, the Phygital offers several benefits for customers. Les Hybrid counters and self-service kiosks allow customers to complete routine transactions quickly and independently, while having access to human advisors for more complex questions. This reduces wait times and improves customer satisfaction.
Les mobile applications and digital wallets facilitate online and in-store transactions, offering flexibility And a security increased. Customers can manage their accounts, make transfers, and view account statements securely and in real time.
How does phygital improve the insurance agency experience?
The Phygital revolutionizes the insurance agency experience by combining the advantages of services Physics and Digitals. Thanks to Chatbots and virtual agents, customers can get quick answers to their common questions. This allows human agents to focus on more specialized tasks, thus providing added value significant.
Les interactive kiosks and touch screens offer a seamless experience: customers can navigate insurance offers, compare policies, and subscribe to contracts, whether online or directly at a branch.
Customer relationship management systems (CRM) connected allow agents to access detailed customer information, giving them the ability to personalize their advice and recommendations. In addition, the solutions of geolocation can send notifications and targeted promotional offers when customers are near an agency, strengthening their involvement And their loyalty.
Conclusion
In conclusion, the Phygital Represents a Major revolution in the commercial landscape, offering a innovative fusion between physical and digital experiences. This approach makes it possible to create interactions Immersive, personalized and practices, thus improving the satisfaction and customer loyalty.
Technologies such as QR codes, the Augmented reality, interactive kiosks and contactless payments are essential tools for a successful phygital strategy. It's important to understand the benefits of phygital, including its flexibility, its transparency and its immersion, as well as to follow the emerging trends like artificial intelligence and metaverses.
By adopting a phygital strategy, businesses can collect valuable data, improve their KING and strengthen their competitiveness. Don't wait to integrate phygital into your business strategy.
Invest in training of your teams, follow the Relevant KPIs and be ready to adapt your approaches based on the results obtained. Phygital is no longer a choice, but a necessity to remain competitive in a constantly changing market.
FAQS
What is phygital?
The Phygital is a strategy of omnichannel marketing that combines the physical and digital worlds. It represents a physical point of sale integrating digital elements to enrich thecustomer experience. With tools like touch screens and interactive catalogs, this approach unifies the online and in-store experience.
What is a phygital point of sale?
A phygital point of sale is a physical store that integrates digital technologies in order to improve the customer experience. It combines in-person interactions with the benefits of digital tools, offering seamless and immersive customer journeys. These technologies include touch terminals, interactive catalogs, and real-time price verification systems.
What is the phygital approach?
THEphygital approach is a marketing strategy that combines physical and digital dimensions to offer an enriched and coherent customer experience. It takes advantage of the benefits of human interactions while integrating digital innovations. This method, which appeared in 2013, uses elements such as interactive terminals, QR codes and Augmented reality to personalize and make the customer experience memorable.
What is the phygital format?
The phygital format merges physical and digital elements to create innovative experiences. It allows users to interact with the real world and the virtual world simultaneously, paving the way for unique interactions.
Among the technologies used, we find Augmented reality, sensors, and other innovations designed to provide immersive and interactive experiences.
