Phygital Retail: The Future of Retail Shopping

Have you ever gone through that frustrating shopping experience? When you walk into a clothing store, excited to find a perfect outfit. But after sifting through limited sizes and struggling to find a salesperson for your help, you walk out of the store empty-handed. Or while you're browsing electronics online, but the lack of details or inability to physically interact with the electronic product leaves you hesitant to buy one.

Phygital retail is the answer to these common shopping problems. It is an exciting merger of physical stores with digital tech and interface, creating an immersive shopping experience with no hassles. A physical store where one can virtually try on clothes in an AR fitting room, or an online platform that recommends products based on your past browsing history, this being the power of phygital retail.

The phygital market is projected to exceed $200 trillion within the next five years

Source: Payments Cards & Mobile

What is Phygital Retail?

Phygital retail is beyond the traditional omnichannel approach, which focuses on simply offering consistent branding and product information across online and offline channels. It's about creating an interactive and interconnected shopping journey like a store that feels like a natural extension of your favorite online shopping platform, and vice versa.

The key lies in seamless integration. Customers can seamlessly switch between online and offline touchpoints, using their mobile devices to access product information, scan QR codes for exclusive promotions, or even initiate a click-and-collect (BOPIS) purchase for in-store pickup. Diginyze, an AI-powered eCommerce platform, helps businesses to create this kind of a seamless phygital experience by providing features like personalized product recommendations and in-app integration with physical stores.

Read also: Personalized and Smarter eCommerce: Enhancing Shopping Experiences

Why Phygital Retail is a Win-Win for your eCommerce Business?

There's a reason phygital retail is taking the retail world by storm. It offers a multitude of benefits for both customers and businesses.

For Customers:

• Enhanced Shopping Experience: Phygital retail makes shopping fun and interactive. The enhanced shopping experience using tech with use cases such as trying on makeup virtually before buying, using AR to see how furniture would look in your living room, or accessing detailed product information through interactive displays. This level of engagement help fosters a more enjoyable and informed shopping experience.

• Convenience and Flexibility: Phygital options like BOPIS cater to busy lifestyles. Order online and pick up your purchase in-store, eliminating long wait times and shipping costs.

• Informed Decisions: Have access to a wealth of product information right at your fingertips. Phygital retail integrates digital information displays and in-store apps, allowing customers to compare features, read reviews, and make well-informed purchasing decisions.

• Personalized Service: eCommerce AI capabilities can personalize the shopping experience. For example, one can receive product recommendations based on the past browsing history or receiving targeted promotions on items you've shown interest in. This level of personalization creates a more satisfying shopping experience.

For Businesses:

• Increased Customer Engagement: Phygital strategies keep customers engaged and coming back for more. Interactive experiences, AI-driven personalized recommendations, and convenient options like BOPIS all contribute to a more engaging shopping experience, leading to repeat customers and brand loyalty.

• Improved Conversion Rates: A richer and more informative shopping experience translates to more sales. When customers have access to the information they need and can interact with products in a meaningful way, they're more likely to convert from browsing to buying.

• Valuable Customer Data: Phygital interactions provide businesses with a treasure trove of customer data. Information about customer behavior in both online and offline environments allows businesses to understand their audience better, personalize marketing efforts, and optimize product offerings.

• Brand Differentiation: Innovative phygital experiences set you apart from the competition. By embracing cutting-edge technology and creating a unique shopping experience, you can establish your brand as a leader in the retail space.

Use Cases: Phygital Retail in Action!

The concept of phygital retail isn't just theoretical. Businesses across various industries are already implementing successful phygital strategies.

• The Beauty Industry: Several beauty brands are using AR technology to create virtual makeup try-on experiences, allowing customers to experiment with different looks without having to physically apply products.

  

  Source: Luxury Briefing

• The Apparel Industry: AR fitting rooms are upgrading the way we shop for clothes. Like stepping into a virtual fitting room and seeing how an outfit looks on you before buying it.

• The Furniture Industry: VR room design allows customers to virtually place furniture in their homes, ensuring it fits the space and style perfectly.

• Sports & other retail shops: Many giants from the industries are having both online and physical store where customers are shopping as per their conveniences.

Source: Forbes

Read also: Unlocking the Potential of AR in Retail

Diginyze, an AI-powered eCommerce platform, can help your business implement these innovative phygital strategies. The platform integrates seamlessly with various technologies, allowing you to create a truly immersive and interactive shopping experience for your customers.

The Phygital Future

The world of phygital retail is constantly evolving, with new technologies emerging to further blur the lines between physical and digital stores. Here's a glimpse into what the future holds:

• The Rise of AI: Artificial intelligence (AI) will play an even greater role in personalizing the phygital experience. Imagine AI-powered eCommerce chatbots offering real-time product recommendations and personalized styling advice in-store. Additionally, AI can analyze customer behavior data to optimize product placement and curate in-store displays for a more targeted shopping experience.

• Metaverse: A virtual world where users can interact with each other and digital objects, has the potential to revolutionize retail even further. A virtual store where you can browse products in 3D, interact with avatars of salespeople, and even attend virtual fashion shows. Diginyze, with its focus on staying ahead in competition, is actively exploring ways to integrate with the metaverse and provide its users with the tools to capitalize on these future possibilities.

• The Power of Beacons: This technology uses Bluetooth Low Energy (BLE) to transmit signals to smartphones within a specific range. For example, if you are walking into a store and receiving personalized greetings, targeted promotions, or product information based on your past browsing history, the credit goes to beacon technology. This seamless integration between the physical and digital worlds further enhances the phygital experience.

Read also: AI in eCommerce: Personalized Shopping Experiences for Higher Conversions

Staying Ahead

The retail landscape is changing rapidly, and phygital retail is at the forefront of this transformation. By embracing phygital strategies, businesses can create a more engaging and rewarding shopping experience for customers, ultimately leading to increased brand loyalty and sales.

Diginyze provides businesses with the tools and capabilities they need to create a seamless and immersive shopping experience. Here's how Diginyze can help you:

• Personalized Product Recommendations: Leverage AI for smart product recommendations to customers based on their browsing history and past purchases.

• Omnichannel Marketing: Create cohesive marketing campaigns that seamlessly blend online and offline channels.

• In-Store App Integration: Develop a user-friendly in-store app that allows customers to access product information, scan QR codes for promotions, and initiate BOPIS purchases.

• Data Analytics: Gain valuable eCommerce analytics from customer behavior data to optimize your phygital strategy and make data-driven decisions.

Diginyze can help you create a winning phygital strategy for your eCommerce business.

Want to see how? Get a free demo now!