How virtual commerce & phygital stores are transforming customer experiences globally

We are living in an era where digitalization is a way of life. Our lifestyles have also changed. Almost all our purchases have gone digital, which is a great convenience for the potential buyers as now they are refraining themselves from visiting stores. It is also a significant leverage point for the sellers as now the number of salesmen required is much less when compared with physical shopping.

Now the buyer can browse through many products online and shop without leaving their homes. Online shopping offers many discounts because now the sellers can pass on some of their surpluses to customers as discounts. So, it is a benefit both for buyers and sellers.

However, one thing was missing here. It was a lack of a feel of the product before buying to understand its quality, size, and other necessary parameters to initiate the buying process. This issue was resolved due to rapid strides made in Artificial Intelligence-led technology which enabled a Phygital (physical + digital) shopping experience through a 360-degree view of the product digitally.

The rise of Phygital vCommerce

Virtual Commerce or vCommerce gave rise to virtual or phygital stores where customers can now shop online by choosing their products and having a trial on a virtual platform just as they would in a physical store. It ushered in a total transformation in our life due to the pandemic when people could not go out of their house but had to make some urgent purchases. Phygital stores made their buying process more innovative, safe, and effortless.

The term phygital combines both the online and offline platforms. Its goal is to combine the physical stores and the digital technology leveraged through AI to transform various industries, institutions, and stores into a more intelligent buyer-specific environment. Phygital buying is not only a blend of physical and digital, but it is a paradigm shift in changing their lifestyles and buying patterns. There are three elements in the phygital world called the 3-I's: immediacy, immersion, and interaction.

Immediacy: In digital buying, customers get a response on a real-time scale, and that too on a 24X7 basis across any store in the browser.

Immersion: Before actual buying, customers can have a 360-degree view of the product or even a demo virtually, just like they view the product physically in a store. This is a significant advantage in making ease of buying phygitally.

Interaction: In phygital buying, interaction also plays an important role. Here, customers interact with salespeople through Augmented Reality (AR) to get complete information about the product. This helps in promoting brand loyalty for the customers.

According to IDC, around 65% of large companies in Italy strive to enhance customer buying experience to the next level, which goes beyond increasing brand/store loyalty and profitability. It has brought about a quantum shift in buying behavior of the customers. (Source)

What is the need for Phygital?

Here are the benefits of a phygital shopping experience:

A quantum leap in buying experience phygitally

Brands in the phygital world not only merge physical and digital buying processes, but they bring a unique buying experience to the customers. The pandemic has reshaped our way of living, and technology accelerates this transformation. It has changed our way of living. It is now a regular practice to shop digitally, providing opportunities to customers to shop 24X7 at their convenience.

Digitally they can go to any store and shop phygitally by remaining indoors. There are also various discounts available in online shopping. Now, the phygital sellers can optimize their operating expenses and transfer some of their gains to customers in deals and discounts. Buyers get a feel of the product virtually by viewing it on a 360-degree scale before they plan to buy.

A different mindset in a phygital environment

Businesses have their supply chain, which starts from acquiring raw material and converting it to finished goods and shipping it to end customers. The leadership of the phygital world must optimize this value chain to find cheaper sources of raw materials and explore different markets. To expand their business, businesses must explore new emerging markets.

However, there are two challenges, such emerging markets are price-sensitive, and its cost of expansion is prohibitive. As a result, businesses must lower their price and increase their expenditure in expanding their reach. This, from a business point of view, is not a viable proposition. Fortunately, by going phygital, now businesses can grow at a fraction of the cost and increase their reach to a broad customer base. Such benefits are passed on to customers in the form of discounts.

Saves time for customers

Customers can save time when they buy online. They do not have to undergo the inconvenience of going to a store to buy physically. Phygitally at their fingertips, they have access to many online stores where they can shop anytime and at their convenience, which gives a unique phygital customer experience.

Safety and comfort

During the ongoing pandemic, the concept of phygital has grown exponentially. Due to their safety and to have less physical contact, customers are now feeling it safer to opt for contactless shopping options as much as possible. They are now more comfortably able to shop and fulfill their orders online.

Today nearly everything is done digitally, and customers can quickly get a complete overall view of any product they are interested in or are willing to buy. They can easily view the product, raise any questions regarding it to support agents, and make transactions online easily by keeping themselves safe and at their comfort.

Takeaways

Phygital is not only a blend of physical and digital, but it is a game-changer that has transformed our lifestyles. The pandemic may have remodeled our life, but technology accelerated it.

Phygitalmarketing has taken online shopping to the next level. This phenomenon has resulted in enormous gains for both the companies and customers. From optimizing resources to offering better deals to customers, brands have enhanced and personalized shopping experiences while boosting sales with vCommerce and phygital stores.