Physical in-store shopping and digital experiences drive the retail landscape’s transformation. The term “Phygital,” coined to describe the blending of physical and digital touchpoints, is no longer a fancy word but a business imperative for CX leaders. While some have jumped on this bandwagon, other retailers must embrace this reality as consumers increasingly expect personalized, convenient, and immersive interactions.
By harmoniously merging the best of both worlds, businesses can create unparalleled customer experiences, foster loyalty, and drive growth.
The future of retail lies in phygital experiences.
Let’s look at the world of phygital and explore how it’s reshaping the retail industry. We’ll cover:
- Driving phygital hyper-personalization
- New tech & AI for personalization at scale
- Digital sustainability
- Retail aha! moments
Driving phygital hyper-personalization
CX leaders need to tap into the gold mine of customer data to create highly tailored experiences. Use AI to analyze purchasing behavior, preferences, and demographics to offer relevant products and recommendations.
Real-time personalization: Utilize real-time data to adapt offers and content based on customer actions and context. One size never fits all—offer tailored product suggestions based on historical purchasing patterns, in-store transactions, items in a customer’s cart, or browsing history. Suppose customers have not renewed their monthly subscription (for various reasons such as an economic downturn). In that case, this is an opportunity to find out why they haven’t and see ways to offer and retain them at discounted prices. These magical moments make customers think twice before switching to competitors.
Loyalty program integration: Elated customers are the best brand advocates. Deepen customer relationships through personalized loyalty programs. Offer tiered benefits, exclusive rewards, and customized communications to drive engagement and retention.
Augmented reality (AR) experiences: Enhance the in-store experience with interactive AR features. Enable customers to experience products digitally, such as trying on jewelry or products virtually or digitally transposing furniture in their living rooms–which is trending in digital shopping.
Investments in omnichannel capabilities are growing, with click-and-collect sales expected to surpass $200 billion by 2028. – Forrester
New tech & AI for personalization at scale
With GenAI making headway in the enterprise, decision-makers need to relook at their AI-powered chatbots and virtual assistants to ensure customer support and recommendations are innately personalized in the truest sense. They can tap AI’s prowess to decode and analyze customer sentiment hitherto hidden across channels and use new insights to optimize marketing campaigns and product offerings.
Utilize ML algorithms to crunch customer data and forecast future customer actions. Use these insights to create personalized product recommendations, optimize pricing strategies, and improve inventory management.
Employ predictive analytics to anticipate customer expectations and their likely next moves. Offer personalized product suggestions, proactively address potential issues, and create targeted marketing campaigns.
The preoccupation with and focus on hygiene, organic products, and sustainability are much more critical than before. So, it’s another layer of complexity for retailers. – McKinsey Research
By integrating physical and digital touchpoints, retailers can create immersive, personalized, and convenient shopping journeys that resonate with modern customers.
Digital sustainability
The retail industry is at a crossroads, compelled to reinvent physical stores to cater to the demands of digitally savvy consumers. Digital sustainability practices are table stakes for a brand’s survival in a market rife with the battle for customer mind share.
By 2030, Gen Z will make up the largest consumer segment worldwide, according to a 2020 Euromonitor report.
Retail aha! moments
Virtual try-on technology is a transformative catalyst in retail, blending the convenience of online shopping with that of in-store experiences. A success story worth sharing is Movate’s real-time plus traditional virtual try-on solution, which surged online revenues by 21% for a leading brand. The solution offers an innovative and immersive shopping journey, redefining consumer engagement. With profound computer vision, ML, and AR expertise, Movate has established AR and AI practices for Virtual Try-On solution development.
Another success story is that of a 150+-year-old clothing and accessories retailer in the UK. Their leading brand is footwear, and they have a global presence with over 1,400 branded stores and franchises. Movate implemented its CX Transformation Platform, Movate Edison, that brought in a 24/7 support management framework that considered handling all requests from different functions such as sales, customer support, billing, returns, and refunds with predictive escalation across chat, voice, and email. The team implemented Smart Priority Routing to identify premium, high-value customers from typical customers and offer personalized assistance based on the personas created. By deploying actionable insights, Movate’s EDISON platform makes sense of every interaction and uses support frameworks to resolve customer pain points most efficiently. The result is swifter resolutions and satisfied customers.
Final thoughts
From GenAI-powered help and product recommendations to mixed reality-led virtual try-ons omnichannel loyalty programs, CX leaders have a slew of innovative measures for repositioning themselves for the transformative era of retail. With new technological developments, expect to witness creative and innovative phygital solutions for superior customer experiences.
Now’s the time to build customer engagements that surpass traditional support models. Deliver frictionless customer experiences across touchpoints with Movate’s suite of Digital Engineering and insights services (DEI), which involve app development, experience engineering, smart automation, analytics, and AI. Movate’s DEI services also cover geospatial and locational intelligence services. Push CX boundaries with the right value partner.
Additional information
- Blog: Unveiling the power of digital twins
- Flyer: Digital engineering & insights services
- Infographic: The Contact Center Of The Future
- White paper: Driving Digital Sustainability With Carbon Neutral
- Blog: Movate’s Virtual Try-On solution for a top brand
- Case study: How to Increase Basket Size: The Key to E-commerce Success
With over 20 years of ITO experience, Amardeep brings extensive knowledge in sales, business strategy, business development, and successful direct & indirect sales management. He has held numerous leadership positions during his successful 18-year stint at HCL Tech, out of which, for 15 years, he was in Europe, with a successful stint in leading teams, particularly in complex sales functions.
Amardeep’s academic background traces its roots back to IT. Beyond his corporate responsibilities, he is an avid blogger, speaker, and technology enthusiast who loves reading, and watching and playing cricket. He champions DEI (diversity, equity, and inclusion) and has notably been associated with Prince’s Trust.
Contact him at amardeep.juneja@movate.com or check out his LinkedIn profile.