Phygital: the new trend in online and offline digital marketing

MARIO POLO

IT Project Manager

Let’s stop talking about two separate worlds; digital and physical are more united than ever today.

The normality of our day-to-day behavior. Our work, personal, and consumption habits are difficult to conceive nowadays without the mediation of a digital device. The smartphone as the center of our digital life, computers, tablets, smartwatches, among others.

 

This reality, mediated by access to the internet, has changed the way we carry out our daily activities. For brands, it has changed the way they relate to their consumers.

Phygital Context

From greeting our family in the mornings via WhatsApp to workplace communication through email or tools like Slack or Teams. Purchasing habits like ROPO (research online – purchase offline), where we first research digitally and then make the purchase physically.

 

The same Showroomer where we physically investigate and then make the purchase online. In addition to RTB (research, testing, and buying), which blends the two aforementioned methods.

 

Among many other forms and habits of our daily lives, they show us how our behavior has changed. How that thin line between the physical and the digital is becoming increasingly blurred.

 

Because of this, a term has gained strength in attempting to define this “new reality”: Phygital.

But… What is Phygital?

This word comes from the combination of “physical” and “digital.” It represents the convergence of the physical and digital in various contexts such as stores, events, services, and more.

 

Due to all the aforementioned reasons, it implies the integration of digital technologies. Augmented reality, virtual reality, IoT (Internet of Things), artificial intelligence, and connected devices—all within physical environments. With the aim of enhancing the consumer experience and optimizing commercial or marketing processes.

 

Phygital adds value to user experience. It collects vital data for decision-making. Clear examples, such as the Estéreo Picnic festival, denote a unique experience because of this.

It is important to clarify that we are not necessarily talking about major technological developments. 

 

We are talking about a mindset shift. Understanding that the digital and physical are no longer science fiction. They are a reality to which we are increasingly adapting and from which we must extract the greatest possible benefit.

Retail Transformation in Customer Experience

The concept of phygital has revolutionized how brands interact with consumers. Physical stores are no longer just places to buy products. They have become experience destinations. Consumers can immerse themselves in brand narratives and engage with interactive formats.

 

Some Examples of Phygital in Action

  1. Smart stores. Some brands have implemented customer tracking technologies and data analysis to personalize the shopping experience in real time. Smart mirrors can recommend products based on the clothes the person is trying on.

    Also, the use of devices like beacons allows us to map and understand user behaviors within a physical space. It identifies hotspots or sends notifications to our mobile devices when it detects proximity.
  2. Virtual pop-up stores. Temporary or “pop-up” stores combine physical and digital elements to create unique experiences. A brand can set up a temporary store where consumers can try physical products while exploring digital content related to the brand. Touch screens, videos, digital catalogs at point of sale—these are the types of developments that enhance consumer experiences.
  3. Frictionless payments and shopping experience. Contactless payment technology and automated purchasing systems are simplifying the buying process. They eliminate long queues and offer a faster and more convenient shopping experience.

    Know our physical activations with the Offcorss brand for the Go Rigo Go collection. We design experiences that blend the real with the digital.

 

Impact on Consumer Experience

We present the benefits of integrating the physical and digital in the experience. Our brands have been strengthened with these strategies:

  1. Personalization. Digital technologies allow brands to collect data about consumers, offering personalized and relevant experiences. If the same user visited us on our e-commerce website and then completed their purchase in a physical store, subsequently, we can send them specific messages related to their purchases, for example, complementary products.
  2. Interactivity. The combination of physical and digital elements creates more interactive and immersive consumer experiences. Video, buttons, printed materials, structures, among others, come together to create enhanced experiences, creating new innovative formats for the audience.
    Meet Offcorss at the EVA Kids fair, enhancing the creativity of the physical with the digital.
  3. Convenience. The convenience of online shopping is combined with the tactile and sensory experience of physical stores, offering the best of both worlds. This allows us to satisfy our buyers and offer them the option with which they feel most comfortable and secure when making a purchase.
  4. Innovation. The adoption of emerging technologies drives innovation and allows brands to differentiate themselves in a competitive market.

 

In conclusion, the phygital phenomenon is transforming how both we and brands interact with consumers. Also, how consumers experience and perceive their day-to-day acquisition of products or services.

 

By integrating the physical and digital, companies can create unique and memorable experiences that have a lasting impact on their customers. In an increasingly digitalized world, phygital represents the future of retail. Customer experience is essential to achieve the best sales results.

 

This vision challenges us to think of new ways to relate to consumers. Integrating the physical into the omnichannel approach we seek in digital. Obtaining key data to strengthen relationships and make better decisions.

 

It is a challenge for those who have always worked digitally to think about how they will integrate into physical experiences, such as events or BTL activations. And for those who have always worked with physical experiences, understanding how digital adds value and ceasing to see it as something foreign.

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