What is phygital and why it is the future of consumption

How to attract and retain customers through the integration between the physical world and the digital environment? Understand what phygital is, why it is the future of consumption, and how to adopt this strategy.

In the past few years, digital presence has become an almost mandatory requirement for most companies. After all, consumers are increasingly connected and consumption patterns have kept pace with this movement toward the Internet and new technologies. 

The pandemic scenario proved the importance of this, as many companies needed to adapt their processes and the way they offered their products and services, completely migrating to the online universe. 

However, being consolidated online is not enough these days. To attract and retain customers, it is necessary to rethink the consumer journey and experience in the phygital context. To understand what this strategy is and how to adopt it in your company, keep reading.

What is phygital?

The word phygital is nothing more than the combination of two words: physical and digital, meaning physical and digital, respectively. In other words, adopting a phygital strategy is integrating the physical world and the digital environment.

This means that a phygital company is consolidated both offline and online, and can integrate these two channels to make its processes possible and sell its products and/or services

Why phygital is the future of consumption?

According to research conducted by Social Miner in partnership with Opinion Box, 14% of consumers want to only buy online, 38% want to buy only in physical stores, and 49% intend to buy both ways. In 2019, that number was only 29%. 

This behaviour reveals that the new consumption habits are following the trend of joining the physical and the digital.

Therefore, there is no doubt that phygital is the future of consumption: at the time when consumers are connected to offline and online channels, companies must establish effective touchpoints in all of them.

And in the context where Customer Experience is a key component to attract and retain customers, being phygital is essential. By integrating the physical and the digital, it is possible to offer innovative experiences that will be remembered by consumers and taken into account at the moment of purchase decision.

How to be phygital?

You have already understood that being phygital is not about transferring experiences from the physical space and adapting them to the digital environment. You need to redesign the customer journey so that these two channels work in an integrated way. But how to do this in practice? 

The first step to unite the touchpoints and establish effective communication in phygital is to be omnichannel.

And if you want to learn more about how to adopt phygital in your company, download our free ebook Loyalty of the Future. In this exclusive material you will learn about the top trends in the loyalty market and gain valuable insights to create a successful relationship with your customer .

About Indico

Indico is a Brazilian Martech company with an experience that has reached more than 150 million customers in 9 countries, that develops solutions to combine Loyalty and Innovation creating unique connections and transforming relationships between brands and consumers.

Contact us and get to know the Indico way of revolutionizing the relationship with the customer.