For a long time, digital and point-of-sale were seen as opposites, but today they are seen as complementary. Together, they form what is known as " phygital ".
This concept opens up new strategic opportunities for retailers. For 51% of them, it contributes to sales. 57% of French retailers believe that digital technology boosts local commerce.
Why bet on phygital? How to make a store phygital? In this article, we tell you all about it!
Definition of a phygital store
The term "phygital" appeared in 2013 against the backdrop of the e-commerce explosion. It refers to a physical store integrating digital into its customer experience.
Customer support is more personalized. It can extend beyond the physical location. The aim is tocombine the best of physical commerce with that of the digital world.
A phygital store is often the result of a digitalization process. It can also be created on this model, from the moment it opens. It is part of the omnichannel customer journey. For half of French retailers, developing an omnichannel strategy is an objective.
What you need to know : What's the difference between the digital experience and the phygital experience?
Phygital is distinguished from digital by the terminal used by the buyer. If they own the device and/or functionality (smartphone, tablet, Internet access), the experience is considered "digital". Most of the time, the consumer is at home to order. If, on the other hand, he or she does not own the terminal, or the solution used is provided by a third party, the experience is said to be "phygital".
Phygital brings multiple benefits to retailers:
- 93% of retailers report an increase in the average customer basket.
- 70% improved brand image.
- 57% a strengthening of customer loyalty.
- 50% more effective promotion.
- 43% an increase in in-store traffic. For 4 out of 10 French people, digital technology encourages them to visit stores more regularly.
- 39% improved sales efficiency.
How do I set it up?
Augmented reality (AR), geolocation, mobile app... A phygital store is easier to set up than you might think! There isn't ONE phygital model.
Discover the phygital solutions, tools and services you can deploy at your point of sale:
- An e-reservations system. For a restaurant, for example, this service enables reservations to be received even when the establishment is closed. Customers are informed in real time of any cancellations, schedule changes or confirmations.
At a glance, the manager has an idea of how full his restaurant is. He can optimize inventory management, as well as staff scheduling.
- Click and collect, an online sales solution widely used during Covid-19. 91% of stores offer this service.
- Product locator. This feature enables website visitors to easily locate a store where the product they are looking for is located. They can also check availability. The role of this solution is to create a link between the online and offline customer journey.
- Interactive ordering terminals, like McDonald's, for example. The aim? Enrich the customer experience by simplifying ordering and payment. This type of device can also be used within a sales outlet. It enables you to offer your entire product catalog, even items not available in-store.
- Paperless payment and mobile payment solutions. 77% of stores are equipped with dematerialized payment solutions, and 49% with mobile payment solutions.
- Self check-out. Customers pay for their purchases themselves at a point of sale.
- Tactile window displays. The idea is to make tactile interactions possible, even outside the store. This 3.0 window shopping experience removes the disincentives associated with entering the store.
- Tablets for sales staff. 44% of sales outlets provide their advisors with tablets. The benefits? Boost operational efficiency, present offers interactively, simplify complex sales, modernize brand image and much more.
Thanks to digital signage solutions, content is increasingly interactive and personalized. 45% of retailers broadcast dynamic content, 40% programmed content and 75% statistical content.
Digital equipment must fit seamlessly into the customer journey. Digital is considered relevant if it enables :
- Save time (49% of French people);
- Doing good business (40%);
- Getting advice (30%).
Customers are particularly keen on solutions that make the purchasing act more fluid. 75% say click and collect is useful, 56% self-scanning and 55% interactive kiosks.
A few examples of phygital stores
- Fnac. The store chain offers a click and collect and Pay & go service (payment for purchases from the Fnac app). Customers can place orders via voice assistants.
- Sephora. Kiosks are available for customers to consult the catalog. Tablets provide access to additional services. Customers can book services via chatbots, or listen to podcasts on Google Home.
- A more complex and futuristic vision with Amazon GO. Cash registers and cashiers are replaced by sensors and artificial intelligence (AI). The shopping experience is totally dematerialized.
The consumer journey is constantly changing. It is becoming increasingly open between the physical and the digital/social. In some sectors, adopting a strategy where the two dimensions are complementary is becoming a necessity.
3 key figures to remember:
- 71% of sales outlets have launched a digitalization strategy in the wake of the health crisis.
- 77% of consumers complete their purchases in a physical store.
93% of retailers say that digital has a direct impact on their brand image. It is therefore important to work on local referencing to improve visibility on Google.
