What is a "phygital" shopping experience & why does it matter?

In the ever-evolving landscape of consumer behavior, the term "phygital" has emerged as a powerful descriptor of the fusion between physical and digital shopping experiences. This hybrid approach, closely tied to omnichannel strategies and retail ecommerce, is rapidly shaping the way today's shoppers interact with brands. Whether they are buying online and picking up in-store, researching products online before making in-store purchases, or browsing in physical locations before taking advantage of online deals, consumers are seamlessly blending their shopping habits like never before.

Phygital experiences—where the physical and digital worlds merge—present brands with both a unique challenge and a remarkable opportunity. To meet rising consumer expectations, CPG companies must master the art of striking the perfect balance.

Why the phygital shift is critical for CPG brands

In the current retail climate, the phygital shopping experience has become crucial for consumer packaged goods (CPG) brands. According to data from Insider Intelligence, a staggering 71% of consumers switched brands in the past year. The primary reasons shoppers switched? 

• 46% stated better product availability
• 44% were swayed by convenience 
• 34% said because of changing needs and expectations

This data underscores a critical point: Brands must meet consumers' expectations at every interaction point to maintain loyalty and avoid losing them to competitors. Are you set up to meet these hybrid consumers wherever, whenever, and however they prefer to shop?

Let’s get phygital:

Step 1: Building effective phygital paths to purchase

Creating a cohesive experience that bridges the gap between online and offline shopping requires strategic planning and execution. Here are some essential components:

• Daily inventory verification: Accurate and up-to-date inventory data is essential. Consumers expect options, whether they're shopping at a local boutique or a national chain. Supporting local businesses offers brands a valuable opportunity to align with consumer preferences. During the pandemic, 70% of shoppers favored local stores, a trend led by Gen Z and millennials today. For CPG brands, success relies on knowing where products are in stock and creating seamless digital pathways to guide consumers from discovery to purchase.
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• Seamless transition across channels: Ensure that potential shoppers can move effortlessly from researching a product online to completing a purchase at any retailer. Implement features like "buy now" buttons on shoppable media, supported by robust where-to-buy functionality to enhance this transition.
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• Unified shopping experience: Create a seamless connection between online and offline shopping experiences. Retail ecommerce platforms that integrate all channels into a single interface enable a cohesive journey, so shoppers can receive consistent service and information at every touchpoint. By personalizing offers and promotions across these channels, you can strengthen consumer loyalty and improve retention.
  
  Experience is everything. In fact:
  
  “In the U.S., even when people love a company or product, 59% will walk away after several bad experiences, 17% after just one bad experience.”
  -PwC, reported by Shopify
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Step 2: Understanding and engaging hybrid shoppers

To effectively engage hybrid shoppers, brands need to delve into shopping trends with full-funnel insights. With detailed breakdowns by geography, retailer, advertisement, product, and even creative, brands can discern what's effective and what isn't. This clarity empowers your brand to better understand the patterns of behavior and preferences that influence buying decisions, allowing you to fine-tune your offerings, promotions, and channels. The result? A stronger connection with your audience and an increase in sales.

Step 3: Harnessing the power of custom audiences

Phygital shoppers crave personalization, and brands must reflect this in their marketing strategies. By building audiences specifically tailored to phygital shoppers, your brand can deliver a seamless, personalized experience across multiple channels and touchpoints.

If your retail ecommerce platform supports pixel firing, you can connect to any ad platform to build custom and lookalike audiences at every step of the sales funnel. Creating audiences based on real consumer behavior—from browsing to checkout—allows for more accurate product recommendations, promotions, and experiences. With built-in geotargeting, you can easily direct shoppers to nearby retailers, enhancing convenience and relevance. This personalization boosts engagement, strengthens loyalty, and delivers marketing brilliance.

The evolution and importance of phygital experiences

Transitioning to a phygital shopping model is essential for success in today’s market. Brands that bridge online and offline experiences, analyze shopper behavior, and use data to create tailored, engaging marketing campaigns can truly center the consumer in all their efforts. This approach not only increases sales but also builds strong, lasting relationships and loyalty. By supporting seamless paths to purchase across physical and digital channels, brands can differentiate themselves in a crowded marketplace and thrive in the evolving retail landscape.

Pear Commerce: Retail ecommerce for phygital brands

At Pear Commerce, we're at the forefront of the phygital revolution. Our proprietary inventory data from over 3,000 retailers and our seamless shoppable experiences ensure that shoppers can connect to available products with just a few clicks. Our real-time insights and audience-building tools further fuel high-performing marketing campaigns.

Explore the future of shopping with us and ensure your brand remains at the cutting edge of consumer engagement.

Interested in transforming your phygital strategy? Witness how we can elevate your approach to phygital shopping.

Book your demo today →

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