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Phygital - The Future of Retail

sowmya Oct-10th , 2019 0 comments

Remember the hotly debated Brick and Mortar versus Digital headlines that we could see everywhere on the Internet? Turns out that there is no clear winner – we need both. Studies show that two-thirds of consumers who purchase online use the physical (brick and mortar) store before or after the transaction. This clearly shows that it isn’t physical OR digital, it is physical AND digital. That brings us to the topic of our discussion – Phygital!

This blog will help you see what Phygital really is, what are its implications on your retail business and how omnichannel retail software can help you with it.

What is Phygital?

Phygital helps retailers build strategies to combine the strengths of digital with those of brick and mortar stores. A great definition of Phygital is given by José María Machuca, Sales & Customer Experience Directorof We Are Marketing: “Phygital marries both the online and offline environments by trying to take the best aspects from each space to create a much more complete and satisfying customer experience. This phenomenon distinguishes itself with its multichannel focus where the consumer's purchasing process is fluid and familiar.”

From this definition, we can draw out two important goals of Phygital:

  • A complete and satisfying customer experience
  • Multichannel focusto streamline the purchasing process

Let’s focus on these aspects.

Phygital and a Seamless Customer Experience

Customer Experience or CX has become one of the fundamental tenets of business today. In a customer-centric market, its vital to look into the complete customer journey and ensure that it meets customer expectation at every point. With that in mind, lets look at what customers say they want.

A survey by Google reports that 61% of customers would rather shop with brands that have a physical location rather than online only, even though the ease and convenience of online buying continues to attract customers. An indicator of this is the surge of online searches for local information in the last two years. Google says searches for businesses “near me” have grown 6 times. This is a clear indication of Phygital in action. A consumer searches online for a physical store near him. He tries out the item in the physical store. He may then prefer making an online purchase to avail coupons or exclusive online/ app discounts.

The key is to focuson perfecting the customer journey through this whole process. A good omnichannel multistore retail software takes out all the hassle and gives your customers a seamless experience, even for retailers with multiple stores.

An Omnichannel Approach for the Multichannel Consumer

Multichannel and omnichannel are sometimes used synonymously, but there is a crucial difference between the two. A traditional multichannel retailercould have a website, an app and physical stores, but these channels may work in silos. Interactions on each of these channels may be completely separate from each other. The essence of an omnichannel Phygital approach is that allthese channels are brought together to create a unified and consistent customer experience.

The “Click and Collect” option that many stores are implementing is an excellent example of this. It enables an any store delivery of an e-commerce order. Through this option, a customer could order online and pick the item up from a convenient store location. The order from the ecommerce site will be communicated to the selected store, where admin can see if it is available at their store or check if they must source it from other store locations. The item should then be kept ready for the customer to pick up at the time allotted. Easy Return options are also important. Retailers must be able to process and enable the return of an item to any of their stores, even if it was an ecommerce order. This involves quite a bit of behind-the-scenes work and seamless integration between Inventory management, POS Invoicing,Ecommerce, Customer Service and more.

One Multistore Omnichannel Retail Software to Achieve Phygital

A good multistore retail software with omnichannel functionalities is vital if you want your business to keep up with Phygital. RetailbeanLite gives you just that. It helps you achieve both the tenets of Phygital mentioned in this blog. RetailbeanLite is an omnichannel multistore retail software, which integrates essential features like POS Invoicing, Inventory Management, Ecommerce, Social Selling and Customer Loyalty Programs into one powerful omnichannel solution.You can build yourecommerce right on top of it so you can pack in a solid punch when it comes to Phygital. Get in touch with us to understand how this can help scale your business.

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