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CX revolution: what is phygital customer experience?

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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!

 

Tech

Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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