Phygital: A Billion Dollar Question
The concept of going Phygital, allows growth oriented companies to combine the pluses of Physical Outlets with the Charms and Advantages of an online business thus leveraging and complementing one another. This Out of the Box approach of changing the environment also aids in the enhancement of the Customer Experience assortment.
A perfect example for this would be the Nordstrom Men’s Store in Manhattan, that lets shoppers use an app to select what they would like to try on before their arrival at the store, so that their chosen apparel awaits at the trial room.
Ever wondered how? The Phygital model helps the business in getting details about the customers, and their Buying Behaviour in an easy, efficient and a non intrusive manner, thus facilitating, easing and decluttering the process of Knowing Your Customers (KYC).
Through the Phygital model we can see the mettle of both the online and offline paradigms at work with great confluence. While they compliment each other rather than hi jacking each other’s thunder. Phygital model helps the business pre anticipate and thus enhance the overall Customer Journey throughout their shopping. The interpersonal interactions between the customer and the store are deemed very critical while considering the fact that 22% of consumers still exercise their business at the brick-and-mortar store. Hence, through the Phygital approach the business in question, can set out for Own Your Community (OYC), by catering to their overall needs, adhering to their interests, aligning business strategies with their life goals the business build a strong and loyal community of Brand Ambassadors that double up as a deterrent to customer exits.
A good example could be an athleisure brand that has modeled its brand community around empowering its community members to lead a healthy, productive and an active lifestyle. At all their Yoga gatherings, community members can sweat, meditate, and retreat together from the chaos of everyday life. Sandra would get to experience and participate in all the sporting activities, connect with your brand, and build strong relations with the other members of the community without any second thoughts.
Similarly, Baby Tula, a provider of baby carrier products, has created a parenting community. Having devised a value-add marketing strategy with different types of content, they’ve become a go-to destination regarding any info about baby carriers and baby-wear culture. They’ve made it possible for their regular customers and prospects, to book a private video chat with one of their baby-wear champions. This helps to make sure that both the customers and their babies are safe and comfortable.
Baby Tula also runs a referral and rewards program, that rewards their happy customers for sharing the brand anecdotes with their friend, mainly over the social media channels. This makes it beneficial and encouraging for the customers to leave product reviews, use a unique referral link, or share the Baby Tula brand online or through the word of mouth.
Basically, Phygital (Physical +Digital) or the brick-and-click model is amalgamating the best of both worlds and providing a middle ground in the crusade between the digital and the physical stores.
This trust can further entice the customers to advocate the brand to their network which is what is referred to as Scale Your Commerce (SYC) in the Customer Experience (CX) and Experience commerce (XpCom) glossary.
Adopting a phygital model helps the business not only enhance the Customer Experience but also its entire Value Proposition and Brand Recall + Loyalty!
The practice can help surge theCustomer LifeTime Value (CLTV also known as CLV) of the entire business and its subsidiaries. which benefit in several ways, such as:
- Increased Footfalls to the Physical Stores and more Eyeballs to Digital Channels
- Increased Conversions @Stores
- Increased revenues through effective delivery of existing services
- Enhancement of the bottom-line by effective use of the marketing spend (Decreasing Costs)
- Creating a two way communication channel with the existing customers
- Designing and Execution and Measurement of well thought Reaching Out campaigns for Prospects
- Designing and Execution and Measurement of well thought Maintenance campaigns for Existing Customers
- Designing and Execution and Measurement of well thought Retargeting Enticing & Engaging campaigns for Lost Customers
The answers to this trivia lies in the following questions:
- Do you know your lost sales/ and customer dissatisfaction?
- Does their Trust in your brand go beyond pricing, financing and discounts?
- Can Affiliate Marketing /e-Gifting / e-Wallet / Gamification drive more commerce for you?
Hence, in the age of tech savvy millennials and generation z who prefer cool experiences over cool products, going phygital is the way ahead.
This is why Reciproci is challenging beliefs “The Phygital Way”.
At Reciproci, we provide apps with Out of the Box features that facilitate Experience Commerce for your customers by the integration of robust logical engines, easy, attractive and agile UI, data sources, point of sales, CRM, inventory systems, flat files, merchants/partners and payment gateways.
To Sum it up: Reciproci dares to reimagine Customer Experience via:
- Customer Identification & Instore Experience- Branded apps that help to get deals/offers through hyper-proximity.
- Clienteling- Helping store-sales surge by anticipating needs, offering persona aligned & behavior specific recommendations by the store staff and managers thus increasing conversions.
- Unification- Reducing App proliferation by offering Value in one app for all businesses, so that uninstallation is unthinkable or preventable.
- Gamification for Brand Community- reinforcing core beliefs of the brand, enabling and facilitating two way communication, recognizing engaged members, creating inspirational value for new members, conceptualizing and capitalizing on opportunities that earn non-routine points, and drives desired behaviors.
- Promotions & Margins- drive repeat engagement and commerce through subscription commerce, e-gifting/ vouchers and affiliate marketing.
- Omni-channel experience- Enables Click and Pick, Smart Surveys, Endless Aisles to counter Stock-Outs and streamlines Rush Hours.
- Optimize Customer Journey- Understanding in Deep Detail the Persona of the Customers and the associated Customer Journey. Anticipating all the bottlenecks along the journey and resolving them through a Technological enhancement , Process alteration or a Human intervention.