Phygital: Definition, challenges, and explanations

Phygital is a hybrid term resulting from the contraction of the words "physical" and "digital." It refers to a business strategy that combines physical in-store experiences and digital interactions to create an integrated and seamless customer journey.

This approach is mainly used in the e-commerce and retail sectors. It aims to enrich the user experience by making a brand's presence more consistent and complementary, both in physical spaces and on digital platforms.

Phygital is not limited to the coexistence of these two worlds, but seeks to merge them to offer a unique, more intuitive, and engaging experience.

Adopting phygital allows companies to meet the new expectations of consumers, who are increasingly demanding and connected, and who want to enjoy a seamless experience between physical and digital touchpoints.

This strategy optimizes customer satisfaction by creating a seamless journey, thereby promoting loyalty and increasing sales. Phygital also allows brands to collect accurate, real-time data through digital interactions in order to refine their offerings and communications.

In addition, integrating digital technologies in stores or via mobile applications provides a significant competitive advantage by offering an innovative and personalized experience, strengthening brand image and customer loyalty.

Phygital works by combining several digital technologies with physical spaces to create a connected customer journey. These technologies include interactive kiosks, mobile apps, augmented reality, contactless payment, and RFID tags.

In practical terms, a customer can, for example, test a product in-store and then use a mobile app to access additional information, compare items, or take advantage of exclusive offers. This seamless interaction between physical and digital media facilitates the purchasing decision.

Points of sale are thus transforming into multisensory spaces where digitalization enriches traditional human contact, enabling personalized service and data collection to better understand consumer behavior.

Advantages:

• Improving the customer experience through continuity between physical and digital channels.
• Increased personalization through real-time data collection and analysis.
• Strengthening customer loyalty through innovative and engaging interactions.
• Competitive differentiation for brands adopting this strategy.
• Ability to optimize inventory and logistics through improved visibility thanks to integrated technologies.

Disadvantages:

• Initial costs can sometimes be high for setting up the necessary technologies and infrastructure.
• Complexity of integration between physical and digital systems.
• Risks related to data protection and user privacy management.
• Need for staff training to master these new tools.

A classic example of phygital is a brand that combines a physical store with a mobile app that allows customers to scan products to obtain additional information or place orders directly from their smartphones.

Interactive kiosks in stores are also a common application: they allow customers to browse the entire catalog, check stock availability, or customize a product.

Another use case can be found in augmented reality, which allows users to visualize a piece of furniture in their home via an app, thereby merging physical and digital experiences to facilitate the purchasing process.

• W3C - International organization for the development of web standards, essential for understanding integrated digital technologies.
• MDN Web Docs - Comprehensive documentation on web technologies used in phygital solutions.
• Google Developers Web Fundamentals - Resources on designing high-performance, integrated web experiences.
• Microsoft Developer Network - Documentation on creating mobile applications and integrated solutions for commerce.
• EasyWeb Agency E-commerce Glossary - Learn more about the e-commerce category.