Phygital Marketing: 3 Retail Strategy Examples

The term “phygital” is a portmanteau of the words “physical” and “digital.” In marketing terms, the word refers to humanizing a traditional omnichannel retail experience. As online shopping and other forms of e-commerce have gained popularity, sales at brick-and-mortar stores in some categories of goods and services have declined. However, retailers of all varieties can still enhance physical store experiences using phygital retail strategies.

With the exponential advancements of digital technology, our physical world has become more intertwined with our digital presence. To adapt to this shift in society, companies and their marketing strategies must bridge the gap between the immediacy of digital retail and the user experience of shopping in physical storefronts. Therefore, some companies employ a phygital strategy that leverages aspects of artificial intelligence automation, digital marketing, and the gathering of in-depth customer data to improve customer experiences offline. This can result in a seamless experience that meets diverse customer expectations and promotes customer loyalty at various touchpoints.

Brands can use phygital marketing methods—that is, methods that blend elements of both digital marketing strategies and physical marketing strategies—to guide a shopper through their customer journey. Consider these innovative phygital methods for contributing to a seamless brand experience for potential customers:

1. 1. Giving customers the choice between physical experiences and digital experiences. Some customers seek out physical stores to speak with an associate. They prefer interactions with these product experts to gain information on a specific product or find comparable products at a lower price point. Other customers enter stores to browse and might prefer to avoid interactions with sales associates at all costs. Many fast-food restaurants and retail stores make both touch screens and in-person help available to customers, empowering them to choose their own buying journey.
2. 2. Updating brick-and-mortar retail models to include digital experiences. Restaurants might replace paper menus with QR codes that customers can use to open online menus on their personal smartphones. Instead of waiting in line, the patrons of these restaurants can opt for pop-up notifications or real-time updates regarding their dinner reservations. Sporting goods stores might forgo rows upon rows of products and instead feature an interactive physical space, like batting cages or golf simulators, to enable customers to test a product’s functionality before they decide to purchase.
3. 3. Providing customers with a showroom experience at home. Customers can use interactive technologies—such as facial recognition software or virtual reality or augmented reality software—with their personal smartphones or wearable devices to shop without ever leaving home. For example, furniture makers can scan their goods and make them accessible in the digital realm. Then a customer, using augmented reality, can create an exact representation of how a piece of furniture might look in a room. These phygital experiences eliminate the hassle of measuring or attempting to envision how furniture will fit with a customer’s home décor.

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