"The digital and physical worlds are starting to come together more seamlessly - it's only the tip of the iceberg in terms of what's coming." - Mark Parker
We all know about Apple Vision Pro.
In today's world, where technology has advanced rapidly and changing the way people live and interact with each other, understanding the phygital concept is now more important than before.
Everyone is wearing the Apple Vision Pro, Facebook Quest, and Samsung Smart Watch all are the most ubiquitous World's best Phygital Products.
WHAT DOES PHYGITAL MEANING
We need to know what is the Phygital meaning.
“Phygital is the concept of using technology to bridge the digital world with the physical world to provide a unique interactive experience for the user.”
PHYGITAL MARKETING TRENDS
At the core of the Phygital trend is a new consumer who expects companies to create seamless and consistent shopping experiences.
They want to navigate smoothly from the company’s website to the physical store and vice-versa.
These omnichannel consumers, who are more empowered than ever, want to decide when, where, and how to shop.
Conceived as an experience of the future that is already present, and seeing its enormous potential, more and more companies are developing all kinds of elements and applications to get the most out of the Phygital experience.
Some of the most prominent are phygital products:
1. Virtual Reality & Augmented Reality
AR and VR create immersive experiences while ensuring smooth omnichannel journeys.
Innovative AR and VR applications effectively meet the consumer demand for phygital experiences on the various channels they use.
Apps use AR to enable shoppers to virtually place realistically rendered and true-to-scale furnishings into their real physical space.
Other AR and VR applications also elevate shopping experiences.
These include in-store navigation, immersive product catalogs, and customization tools.
They make phygital experiences more captivating while connecting consumers to brands on an immersive and emotional level.
2. Metaverse (Digital Real Estate)
Last two years ago, it was a popular buzzword.
Much has been said and written about the Metaverse, and like all grand visions, it holds many interpretations depending on whom you ask.
Here we are today, with hundreds of millions of users already on board.
Many experts foresee the Metaverse becoming a Phygital world.
A decentralized metaverse connected to the physical world, but with its unique characters — a Phygital world in a Web 3.0 landscape.
Increasingly retailers will look to grow their brands within the Metaverse in 2023, emphasizing connecting physical products with digital assets.
Your classic NFT concept.
Token-based engagement and digital product passports for luxury goods will be among the strategies used.
Luxury companies like Tiffany’s have already brought NFTs to another level by innovating and figuring out a physical form of crypto.
As a result, NFTs will no longer be used as just a token but will provide the ability to purchase uniquely crafted (physical) pieces.
4. Beacons and QR Codes
Beacons are Bluetooth devices that are installed in stores and send information to mobile devices.
Likewise, QR codes are two-dimensional barcodes that store data encoded as links to download an app or access a web page.
In both cases, the objective is to complete the consumer’s purchase process with information.
5. Go supermarkets
A new type of development that is still under development and companies like Amazon are applying, consists of acquiring the products you want by scanning them and paying with your mobile phone without having to go through a cash register.
“We are analog beings living in a digital world, facing a quantum future.” - Neil Turok
PHYGITAL EXAMPLES FROM DIFFERENT INDUSTRIES:
Retailers are combining their brick-and-mortar stores with their online presence to create a phygital experience for their customers.
Examples of this include
Stores offering click-and-collect options, where customers can order online and pick up in-store, and
Using virtual reality (VR) technology to create immersive shopping experiences.
The healthcare industry is using phygital experiences to improve patient care.
Using telemedicine to allow patients to consult with doctors remotely and
Using wearables to monitor patients’ health remotely.
The automotive industry is using phygital experiences to enhance the car-buying experience.
Car manufacturers are using augmented reality (AR) technology to allow customers to see what a car would look like in different colors or with different options, and
Using digital displays in dealerships to showcase different features.
The hospitality industry uses phygital experiences to improve the guest experience.
Using mobile apps to check in and access hotel amenities, digital room keys, and
VR to showcase hotel rooms and amenities.
5. Phygital Banking
The banking industry uses phygital experiences to improve customer convenience and access to services.
Using mobile apps for banking transactions and
Using chatbots to answer customer queries.
KEY COMMITMENTS TO IMPLEMENT PHYGITAL
1. Phygital is omnichannel.
To be successful, view your organization as a single organism.
Processes require cross-channel design, as do objectives, roles, and responsibilities, and these should be passive; put each step in place to reduce friction and increase positive intervention.
Competition between your channels isn't your friend here.
2. Phygital is psychology.
Consumer psychology is central to phygital.
For example, individuals tend to “select (product) from the right.”
The placement of browsing screens would follow a similar tendency of being better on the right.
Train your staff to be symbiotic with technology, each drawing on their strengths and weaknesses.
3. Phygital is combined revenue recognition.
Forget about incentivization and reward on a channel-by-channel basis.
Budgets should be set on a cross-channel basis.
If you want to test this strategy, broaden your skill set and exposure by rotating channel responsibilities across each of your heads of channels.
4. Phygital is compromised.
The solution that's right for your organization is optimal across your retail and digital channels.
Put in place a set of design principles to help ensure the decisions you make aren't subjected to bias.
Be prepared to compromise.
5. Phygital is a journey, not a destination.
An organization doesn't wake up one day and be phygital.
It's a strategy that requires constant evaluation, improvement, and response to the market.
There's a time when digital will be as ubiquitous as electricity; until that day, this requires consistent investment.
“The digital revolution is far more significant than the invention of writing or even of printing.” - Douglas Engelbart
The phygital concept is a rapidly growing trend in the business world and is becoming increasingly important as technology continues to evolve.
Implementing a phygital strategy requires careful planning and execution, as well as a deep understanding of customer needs and technology.
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