The future is phygital – be ready

Never before has ‘Phygital’ – the blending of digital and physical retail experiences – been more important as we hit restart on the retail sector this April.

While the pandemic has accelerated digital purchasing, many shoppers have missed the interaction and personalised service that a physical store and brand experience can offer.

Stores more than ever need to be about building the experience and becoming destinations to create that ‘all important’ brand image and equity in the minds of consumers. It’s what maintains the perception of the brand within a customer’s mind, both online and instore.

But making that strategic transition, from e-commerce to bricks and mortar, needs to be seamless and memorable - which is where ‘phygital’ comes in.

Read on for our key takeaways of the phygital store experience.

Reward social engagement

Burberry’s social retail store in Shenzhen connects and rewards customers as they explore online and in store.  At the heart of this in-store experience is a dedicated app which encourages customers to explore the brand both online and off, but also rewards them for doing so.

The more customers engage with Burberry, the richer their experience becomes. Within the mini program, customers can earn rewards through the Burberry social currency feature, offering exclusive content and personalised experiences such as secret menu items and access to ultra-exclusive selfie backdrops.

Here, the customer is using their own personal device to create a unique experience with the store. They control the pace and better still, get rewarded for it. 

Photo © Burberry.

Keep it simple, but consistent

Here at Lucky Fox, we’re working with our clients to implement simple, cost effective, yet innovative methods to provide consistency for customers across all the brand’s channels.

Fundamental to this consistency is promoting app sign ups through simple QR code scanning instore. By using the store environment to launch ‘store only’ exclusive events, the all important desire to go to store continues.

Instore digital communication is also proving a valuable and sustainable way to communicate product innovation, storytelling and navigation.

Ensuring that the content is being used consistently within the store environment, social media and app promotion is key here.

Photo © Levi’s UK. Photographer Tom Bunning.

Make it multi sensory

Mercedes-Benz recently opened Studio Odeonsplatz in the centre of Munich as a brand experience space showcasing constantly changing campaigns and offers.

As well as creating an exhibition space, the 400-square-metre venue includes a lounge area for co-working, community gatherings, a podcasting studio and a deli bar.

Collaboration is also key to the success of the studio. By collaborating with various partners, creatives and artists, they will constantly be creating new environments at the studio that enable digital and interactive brand experiences.

Here, the studio is seen less as a transactional store, and instead, more of a multi-sensory space.

Photo © Mercedes-Benz.

Maximise dwell time

When Selfridges launched its first ever gaming destination, Playhouse by Smartech in their Corner Shop back in December 2020, the store reportedly saw shoppers queuing up outside Oxford Street to try some of the exclusive gaming tech on offer.

Along with the opportunity to try out and buy latest gaming innovations, Playhouse also developed an immersive AR game experience, exclusively for Selfridges, combining virtual and augmented reality technology. Customers were able to play via a simple scan of a QR code with the chance to win a gaming bundle.

By providing so much to hold a customer’s attention and maximise dwell time, spontaneous purchasing soon follows.

Photo © Selfridges. Photographer Tom D Morgan.

Don't get left behind

We couldn’t talk about phygital without referencing Amazon Fresh, which recently opened it’s first ’till-less’ grocery store in UK.

It just shows us the pace that tech-assisted stores are moving. The QR code has quickly gained momentum during the pandemic and Amazon Fresh shows us just how usable it is for stores to provide customers a seamless, touch-free way to pay.

We’re not saying shoppers will be expecting to see ‘till-less’ and ‘touchless’ stores flooding our high streets when stores reopen again in April. But, it’s a good glimpse into the not so distant future. The future is here, the future is phygital. It’s time to get onboard.

Photo © Amazon UK.

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