Phygital Experience: The Fusion Of Physical & Digital Worlds- POCs and Insights

What Are Phygital Experiences?

Phygital meaning is simple- a blend of digital and physical worlds that has been in the limelight of emerging technologies for a while. More and more enterprises are turning to this solution for the tasks that were done by people previously. This includes cases like grocery shopping. Ever since the pandemic, consumers have been more comfortable with online shopping than walking an aisle. 

Thus, there is no turning back now, and the blend of physical and digital technology is here to stay.

What Is The Origin Of Phygital Experience Technology?

In 1990, the Desktop Web Era began, and banks ushered in self-serve capabilities, prompting a rapid shift of 60% of banking activities to desktop platforms almost overnight.

The Mobile Era took flight in 2007, catering for the ethos of anywhere, anytime, and anything, significantly amplifying the lifetime value of multi-channel customers compared to single-channel ones.

By 2014, the Immersive Digital Era emerged, promising highly personalised and immersive encounters. Notably, most mobile app usage occurred while consumers were physically present in stores!

So, where do we find ourselves today? We’ve seamlessly integrated into a Digital World where there’s no longer a separate digital strategy—it’s all about strategy in a digital landscape. 

The new norm? Digital is an “invisible thread,” empowering experiences rather than dictating them.

Thus, understanding this landscape is pivotal for brands. Today, EXPERIENCE is the quality of time spent and must be more than just sight and sound.

Here comes “Phygital”- a harmonious blend of physical and digital worlds that enriches customer and business, akin to a flourishing relationship.

What Exactly Constitutes A Phygital Strategy?

A phygital strategy blends the best parts of physical and digital experiences. To create a great one, start by understanding what your customers love and where they face problems. Use this insight to build an experience that goes beyond what they expect. 

To make it seamless, aim for interactions that feel so easy for customers that they don’t need to give feedback—it just works perfectly. A top-notch strategy means everything fits together smoothly for customers. They don’t need to put in much effort to connect with your brand, which keeps them coming back for

Deployments Of Phygital Experience Technology In The Market

Some of the companies that have already deployed phygital experience techniques are:

1. Voice Assistants

Companies are increasingly developing voice skills to assist consumers in their day-to-day tasks. Similar to other instances, these experiences often combine a digital element with a physical one. For instance, one might instruct Amazon’s Alexa to monitor medical data reported by wearable devices. This information remains accessible for discussions during telemedicine appointments, allowing consumers to delve into improving overall health.

2. Amazon GO’s Seamless Shopping

In Amazon stores, customers can effortlessly exit after shopping without explicitly checking out. Any item picked from the shelf is automatically added to their virtual cart while returning items erase them from the list. Charges are billed to their Amazon Pay. Moreover, this experience can get immersive with extended reality wearables. 

3. Sephora’s In-Store Tech

Sephora is shaking up the retail scene by using an innovative approach that merges the physical and digital experiences to create an immersive, customer-centric experience. Sephora’s app reads data when customers are in the store, while employees use a ColorIQ device to scan faces, generating a unique 4-digit colour code to match skin tones for tailored product recommendations. The website hosts Sephora’s Virtual Artist, allowing customers to try various lipstick shades virtually by uploading a photo.

6. IKEA’s Home Planning App

The IKEA Place app allows users to plan and decorate their spaces remotely. By scanning their homes and selecting products, users can visualise items in real-life settings, automatically scaled based on room dimensions. 

7. Marks and Spencer’s Virtual Fitting Room

Marks and Spencer’s virtual changing room permits customers to virtually try on multiple outfits without physically entering a fitting room. 

8. Disney’s 3D Visualization Park

Disney uses a virtual-world simulator to recreate one of their theme parks in 3D, offering immersive and personalised virtual experiences.

9. Lenskart’s Augmented Commerce (A-commerce)

Augmented Commerce, often abbreviated as A-commerce, is essentially an evolution of e-commerce fused with augmented reality (AR). It enables consumers to view virtual products in their real-world environment, enhancing their ability to assess and interact with items before purchase. This technology bridges the gap between flat images and real-world perception, offering consumers a more immersive with the virtual product.

One of the standout examples of A-commerce success is demonstrated by Lenskart. Their innovative platform lets users virtually try on glasses through their phone’s camera, revolutionizing how customers perceive eyewear online.

10. Asian Paints Phygital Outlet

Asian Paints has opened Phygital stores that offer an elevated shopping experience. Arranged as an apartment setup with distinct living areas showcasing various styles, it invites buyers to envision their ideal home decor. Each space, from living rooms to bedrooms, is meticulously designed, inspiring customers and helping them imagine their personalised style and preferred pieces for their spaces.

What Are The Advantages Of A Phygital Marketing Strategy?

Enterprises can leverage much through phygital marketing strategies:

1. Enhanced Customer Experience

A study highlights that personalized marketing can significantly boost a 5-15% increase in revenue and ROI by 10-30%. [McKinsey] 

Blending digital tools into physical interactions allows customers to seamlessly access information, products, and services across their preferred devices. 

Tailored recommendations, offers, and content based on individual preferences, behaviour, and location enrich the customer journey.

2. Enhanced Brand Recognition And Loyalty

Engaging customers through immersive events, games, and contests creates memorable experiences that forge deeper connections with your brand. 

Such involvement also creates a sense of belongingness and commitment in customer’s minds to the brand.  

Joining online communities cultivates a shared interest among customers, nurturing a community of loyal brand advocates.

3. Data-driven Insights

Customer data is a goldmine, offering valuable insights into behaviour, preferences, and trends. Analysing and deciphering data from various sources aids to informed decision-making and tailored marketing efforts. 

Upcoming Trends In Phygital Marketing

In the coming times, the concept of Phygital revolves around seamlessly connecting users with daily activities, creating a smooth experience that customers hardly realise their lives have become simpler.

The distinction between physical and digital encounters will vanish to such an extent that users won’t discern any difference. Some of the technological trends in the phygital arena are:

1. AIML integration

Incorporating AI and ML into phygital marketing strategy can provide profound insights into customers and predictive analysis. AI systems can seamlessly merge physical and digital realms and suggest personalised products based on customers’ past purchases.

2. Metaverse

The role of AI in transforming customer communication is substantial, especially within the rising concept of the metaverse in phygital marketing. 

For instance, when launching a new car model, with XR stations in the showroom, visitors can virtually test drive the car. Simultaneously, a virtual showroom in the metaverse offers a digital twin for exploration, customization, and test driving.

3. NFTs

NFTs (Non-Fungible Tokens) play a pivotal role in enhancing the phygital marketing experience by seamlessly linking the physical and digital worlds. For instance, an art gallery promoting an upcoming exhibition: each artwork features a QR code providing details alongside an NFT representing the digital version. 

4. Blockchain

Blockchain technology offers multiple advantages in phygital marketing, including customer data protection, product authentication, and supply chain transparency. Luxury brands can leverage blockchain to authenticate products, combat counterfeits, and let customers trace product origins and journeys.

Embrace The Future

Be part of the Phygital Revolution! The landscape of commerce is evolving, and those who welcome this change will flourish. Immersive shopping isn’t just a passing trend; it signifies a pivotal change in how businesses connect with customers.

Are you prepared for what lies ahead? Schedule a demo with AjnaLens and embark on crafting immersive, indelible experiences for your customers.

TL;DR

• Phygital experiences merge physical and digital worlds, evolving from increased online comfort post-pandemic.
• They integrate interactive product descriptions, livestream e-commerce, QR codes, wearables, real-world customer centers, interactive kiosks and digital twin technology for efficient tasks.
• A successful strategy blends customer insights and effortless interactions, enhancing experiences and fostering loyalty.
• Deployments include voice assistants, checkout-free shopping, personalized recommendations, virtual fitting rooms, A-commerce, and immersive virtual experiences.
• Advantages lie in personalized experiences, brand loyalty, and data-driven decisions.
• Future trends involve AI integration, the metaverse, NFTs, and blockchain, reshaping customer connections and commerce.
• Embracing this revolution means adapting to a seamless blend of physical and digital, ensuring enduring customer engagement and success.