Embracing the Phygital Revolution in Digital Advertising

Here we go, another buzzword. But hear us out, this one is important and very much here to stay. Consumers are seamlessly blending their physical and digital shopping experiences - a phenomenon the pandemic lit a fire under. It’s all about convenience. There is no one way to shop and audiences are mixing it up based on the day, week, and month and expecting retailers large and small to keep pace. Understanding and leveraging the phygital experience in your omnichannel marketing strategies is crucial to stay competitive in the retail space.

Understanding Phygital Customer Journeys

Today’s consumer paths to purchase are intricate, encompassing various retail e-commerce methods such as buy online/pick up in-store (BOPIS), reserve online/pick up in-store (ROPIS), research online/buy in-store (ROBI), and look in-store/buy online (LISO). Consumers frequently switch between these methods, creating a hybrid shopping experience that brands must adapt to.

According to Insider Intelligence, 71% of consumers worldwide switched brands at least once over the past year. The reasons?

• 46% for better product availability

• 44% for convenience

• 34% due to changing needs and expectations

Meeting these hybrid customers' needs is essential to prevent them from jumping to competitors. So, how can you set up your brand to meet customers wherever, whenever, and however they prefer to shop? Let’s explore the phygital approach:

Creating Phygital Paths to Purchase

For retail brands, creating effective phygital paths to purchase involves three key steps:

1. Accurate Inventory Data: Ensure you have up-to-date inventory information to know when and where products are in stock.

2. Digital Pathways: Bridge customers from the awareness and research phase to the purchase phase, whether they shop online or in-store. This is particularly important for regional retailers, as 70% of consumers surveyed by Mint prefer to support local businesses.

3. Consolidation Across Channels: Leverage a retail e-commerce platform that supports seamless transitions between online and offline shopping experiences. This creates a consistent, connected customer journey, enhancing the overall shopping experience.

Gaining Insights into Hybrid Shopper Behavior

Once you've established paths-to-purchase, gaining insights into how phygital shoppers operate is crucial. A robust retail e-commerce platform can provide real-time insights from your shoppable experiences, broken down by geo, retailer, product, ad platform, audience, copy, creative, and more.

These insights help you understand which offers, products, and campaigns resonate with your customers in different channels, enabling you to better tailor your strategies to their preferences. This results in deeper customer connections, stronger brand loyalty, and ultimately, more sales.

Leveraging Custom Audiences for Personalized Marketing

If your retail e-commerce platform supports pixel firing, you can build custom and lookalike audiences of shoppers at each step of the sales funnel. These audiences allow you to personalize the shopping experience across multiple channels and touchpoints, optimizing marketing campaigns, product recommendations, promotions, and content.

Creating a great phygital shopping experience centers around keeping the customer at the heart of your strategy. By supporting seamless paths to purchase, analyzing shopper behavior insights, and using data to create tailored marketing campaigns, brands can build strong relationships and loyalty with customers as they move fluidly between physical and digital channels.

The Benefits of Click and Collect

Consumers seek convenience, time savings, and cost efficiency in their shopping experiences. Retailers are increasingly adopting click-and-collect (BOPIS) to stay competitive. According to the National Retail Federation, 83% of consumers find shopping convenience more important than it was five years ago, with 70% stating that BOPIS improved their shopping experience.

Benefits for Retailers

1. Increased Store Traffic and Sales: Customers picking up orders in-store often browse for additional products, leading to increased sales. PYMNTS’ 2022 Global Digital Shopping Playbook: U.S. Edition found that 47% of online shoppers end up buying more products during their in-store pick-up trips.

2. Reduced Shipping Costs: BOPIS allows bulk shipments to stores, saving on last-mile shipping costs when customers pick up orders.

3. Improved Inventory Management: Streamlining inventory management and getting real-time stock updates enable better order fulfillment and control over a larger assortment of inventory.

What Consumers Like About BOPIS

• 35% appreciate not paying for shipping fees

• 35% enjoy not having to wait for shipping

Conclusion

Adapting to the phygital shopping experience is essential for modern brands. By creating seamless paths to purchase, understanding hybrid shopper behavior, and leveraging personalized marketing, you can build stronger relationships and loyalty with your customers. Embrace the phygital revolution to stay ahead in the competitive digital advertising landscape.