Learn what the so-called phygital CX is, and check out 5 examples.
When we talk about customer experience, some folks swear by digital, while others are all about in-person experiences. But, guess what? It’s not about either of them. What counts these days is the phygital customer experience.
Yeah, you heard it right. This new term is shaking up how customers see businesses, especially when paired with experiential marketing. It’s a game-changer! Did you know that 67% of consumers are willing to pay more for an amazing experience?
Are you ready to find out more about this revolution and check out 5 inspirations of famous brands’ phygital CX? Roll down and discover more about this trending way to engage with your clients.
What is experiential marketing?
First of all, it is important to discover a little more about experiential marketing. Also known as engagement marketing, this strategy focuses on creating unforgettable experiences for customers.
This can be done through interactive events, installations, or experiences – digital or physical. The goal is to build an emotional connection between the consumer and the brand.
It is an effective strategy in a competitive market. At the end of the day, consumers want to feel part of something bigger, doing so by having meaningful interactions with the brand.
What is phygital customer experience?
Phygital is a mix of in-person and digital experiences.
Physical + Digital = Phygital
This concept is considered a natural and logical step for companies aiming to adjust to changing consumer behaviors and preferences.
As more consumers engage with brands both online and in person, creating a seamless and integrated experience across these channels becomes crucial.
Embracing a phygital approach allows companies to meet the ever-evolving needs and expectations of their customers, ultimately enhancing their overall brand experience.
The benefits of phygital CX
Modern consumers are becoming increasingly digital. That’s the plain truth. But they also live in the real world. It’s funny to talk about the real world when isn’t the digital world real too?
At the end of the day, it’s all one world and the customer experience must be properly thought through. And that’s why we talk about phygital customer experience.
Phygital Advantages:
- Convenience: enable customers to choose their preferred shopping journey, bridging the gap between browsing and purchase.
- Autonomy: offer multiple buying channels, empowering customers to decide when and where to make a purchase, leading to increased interactions with sales touchpoints.
- Immersion: put the customer at the centre of the experience, incorporating entertainment elements (retailtainment or shoppertainment) and leveraging immersive technologies in the buyer’s journey.
In addition to these advantages, when talking about phygital customer experience there is an optimization of investment. You will have more sales and customer loyalty and a lower customer acquisition cost.
Here is a summary of the biggest benefits of adopting this strategy:
- personalize customer interactions
- provide relevant service
- solidify more sales
- brand value increasing
- customer retention and loyalty
- increase in customer lifetime value
- decrease in customer acquisition cost
The most important thing of all is meeting your customer’s needs. It is no longer acceptable to offer just one type of user experience. You need to provide the full experience. Next are some tips for adopting a phygital customer experience strategy.
Adapting a phygital strategy in four steps
A phygital customer experience strategy can cover a lot of things. From website optimization to in-store service, many factors must be considered.
Check out below how to adapt a phygital CX strategy in four steps:
1. Omnichannel engagement:
Is your marketing strategy omnichannel? In other words, does it involve more than one communication channel?
Use an omnichannel strategy to integrate communication channels and engage your audience effectively. Prioritize the customer experience by making it the central focus of your phygital approach.
2. Integrate online and offline worlds:
Blend both worlds. Perform marketing initiatives that seamlessly combine physical and digital platforms. Understand and utilize various channels to connect with customers, considering their preferences and behaviors.
Goals include:
- offering quality experiences
- boosting sales
- strengthening customer relationships
3. Leverage technology:
Tech is a great ally. It embraces tools like smartphones, QR codes and artificial intelligence to bridge the gap between physical and digital realms. If you are willing to risk a future (or current) trend in:
- virtual reality & augmented reality
- metaverse
- NFTs
- blockchain technology
Immersion technologies keep customers engaged and interested in your offerings.
But remember: effective phygital strategies don’t necessarily require a significant financial investment. Small adjustments, such as mobile-friendly websites, can have a big impact.
4. Create unforgettable experiences:
There is a lot of competition, so you don’t want to be forgotten in the crowd of companies, right? So, create memorable experiences. Anticipate a rising demand for extraordinary experiences in the coming years.
Employ experience marketing to surprise consumers in unexpected places, leaving a lasting impression.
Recognize that consumers seek more than fair products or services. They crave meaningful sensations and experiences. Businesses that deliver on this front will distinguish themselves from the competition.
Examples of phygital customer experiences
Here are 5 examples of phygital customer experiences:
1. Nordstrom’s Live Video Shopping:
Pioneered in the U.S., it allows customers to view clothing in action and make purchases during themed live streams.
2. Panera Bread’s Palm-Scanning for Quick Payments:
Introducing palm-scanning technology for seamless entry, personalized service and contactless payments.
3. Toyota’s AR Tool for Car Customization:
Employing augmented reality to assist customers in customizing their cars with virtual accessories.
4. Starbucks Mobile App for Personalized Recommendations:
Providing tailored drinks and menu item suggestions based on location, season and customer preferences.
5. Ralph Lauren’s QR Codes for Clothing Authenticity:
Ensuring authenticity by placing QR code tags on clothing items, allowing customers to verify products and get care instructions.
These were just a few examples of good uses of phygital customer experience you can apply to your brand. Remember not to copy strategies, but to understand which ones make sense for you and your customer. The idea is to create something memorable, so focus on that!
