Phygital Marketing: Combining Digital and Real-World Experiences

27 Aug, 2024

5 min read

According to a McKinsey report, by 2025, 80% of retail interactions will involve some form of digital engagement. This underscores the growing importance of phygital marketing, making it a crucial strategy businesses cannot ignore. For businesses, it is not just an opportunity but a new norm vital for staying competitive.

In this blog post, we’ll explore how businesses are utilizing phygital marketing by integrating advanced technologies with the help of Cubix, overcoming common challenges, and enhancing customer interaction to build stronger brand loyalty.

Why Should Every Brand Get ‘Phygital’ Now?

Today’s consumers seek a smooth blend of online and offline experiences. With almost 60 million people using social networks to make a purchase, only creating traditional physical storefronts is no longer enough.

Phygital marketing bridges this gap by combining advanced technologies with a physical store’s tactility to forge an engaging and seamless customer experience. Enterprises and brands can now delight customers and keep them coming back for more by combining advanced technologies with tangible components of a physical store.

It’s especially challenging when your business is mostly physical, like a local store or restaurant. And think of how you create that same warm, personal connection with consumers when so much of their shopping and discovery happens online.

Take Samantha’s story. She is a retail business owner. This store was loved by locals but struggled to connect with online shoppers. She faced these exact challenges when the pandemic forced her to close her popular retail store for months.

That’s when she decided to merge her physical store with digital tech by adding features like an app for instant reviews and virtual try-ons. Result? A 200% boost in online sales and more foot traffic in-store.

Why Does Phygital Marketing Matter?

Enhances Customer Engagement

Phygital marketing combines physical and digital experiences that engage people’s senses and give them a truly immersive brand experience. This strategic approach keeps customers interested and invested in your brand, resulting in better brand loyalty and word-of-mouth marketing.

Bridges Online and Offline Worlds

Blending physical and digital touchpoints enables brands like yours to gather tons of useful customer data to personalize the experience and make more informed business decisions. Phygital marketing provides a smooth experience between online platforms and physical stores by providing a cohesive journey that enhances customer satisfaction and loyalty.

Boosts Brand Visibility

Nowadays, customers expect inventive, tech-forward experiences. This demand has forced businesses to embrace phygital marketing to stand out and capture attention in this crowded market. This also enables better online visibility to drive brand awareness and attract new customers.

Provides Personalized Experiences

Ultimately, phygital marketing is all about creating magic for your customers. It allows businesses to provide tailored experiences through digital enhancements, meeting individual customer needs and preferences. This is the way to set yourself up for long-term success.

Drives Innovation and Growth

This marketing strategy drives innovation and growth by creating more engaging and personalized customer interactions. It showcases your brand as innovative and forward-thinking, which will lead to increased market share, brand loyalty, and new revenue streams.

Tools & Technologies that Cubix Utilizes for Phygital Experiences

Picture walking into a shopping mall with your phone guiding you directly to what you need. Your favorite brand offers a 50% discount, and you can try on the perfect pair of shoes virtually without taking off your own, all by using your smartphone. This is not science fiction; it’s the power of phygital marketing.

Here at Cubix, we are making these experiences a reality by utilizing the latest tools and technologies to help businesses like yours to blend the physical and digital worlds smoothly.

Augmented Reality (AR)

Augmented reality is changing the online retail landscape and how customers interact with products. It’s not just about virtually trying on clothes or seeing how a brand-new sofa set will look in your living room. AR makes shopping more interactive and fun. On similar lines, Cubix offers customized solutions that enhance in-store experiences, delighting customers.

Internet of Things (IoT)

IoT is another powerful tool that can create a transformative impact. It takes customer engagement to the next level by linking physical products with data obtained from various digital mediums.

Consider smart shelves that know when a product is running low or sensors that track customer movement to offer personalized recommendations. These smart environments provide businesses with deeper insights into customer behavior and ways to optimize their operations.

As a full-cycle product development company, Cubix provides full-cycle IoT app development services to create such smart environments.

Mobile Apps

Mobile applications are the bridge between the digital and physical worlds. They enhance in-store customer experiences by keeping them connected to your brand. Cubix’s experts develop engaging and user-friendly applications using the latest technologies, helping businesses offer engaging experiences that keep customers coming back.

How Global Names are Pioneering Phygital Marketing

Nike

Nike has utilized phygital marketing to create an exciting shopping journey. They utilize tech-forward features like QR codes and augmented reality to improve the in-store experience in their flagship stores.

This app allows customers to scan QR codes on products and see additional information, check availability in different sizes, and even view styling tips. This innovative technology is not just making shopping easier but also increasing customer engagement and satisfaction.

Sephora

Sephora has changed how people shop and try different beauty products with its Virtual Artist app. This application lets you try on makeup and accessories virtually using augmented reality. You can try it at home or in one of their stores and see how the selected product looks on you before buying.

This has made the shopping experience feel more personal and helps customers find the perfect product without any guesswork. This leads to a higher conversion rate and happier customers who are more likely to return.

Amazon Go

Amazon Go stores are simply the best example of how phygital marketing can redefine shopping experiences. These stores allow you to walk in, pick up whatever you want, and walk out without queuing at the checkout counter.

Such innovative retail experiences utilize smart technologies like IoT and AI. It’s remarkable how Amazon has blended physical shopping with effortless and automated checkouts, payment, and inventory management. It’s also incredible how convenient and hassle-free shopping can be with Amazon Go.

Ready to Create Seamless Customer Experiences With Cubix?

Connecting online and offline experiences through phygital marketing is no longer just an option but a necessity for all of us. Retail businesses that adopt this approach are set to see better brand loyalty, higher customer engagement, and increased revenue.

Let’s talk about your phygital future. At Cubix, we’re at the forefront of innovation and technology, helping businesses bring their physical and digital worlds closer. Our team uses next-gen tools, technologies, and assets to bolster your phygital strategies and drive brand loyalty and customer retention while boosting revenues.

So what are you waiting for? Contact our experts to discover how we can transform your customer engagement strategies and take your business to the next level.