Infographic – Phygital Marketing Trends
By Katerina Mansour - 13 August 2020
The blending of digital and physical retail strategies, also known as phygital marketing, has been a key trend for retailers in recent years. Fast-changing customer expectations and new technologies (IoT, machine learning, automation…) are driving the development of phygital solutions.
In this infographic we look at some key statistics, factors and startups driving the adoption of phygital approaches.
New customer expectations
Several recent studies have highlighted how customers have been increasingly embracing digital and cross-channel shopping. A survey conducted by the National Retail Federation (NRF) showed that 66 percent of consumers found that technology improved their shopping experience.
Shoppers are also keen to try new technologies with the same survey finding 2 in 3 participants would consider using augmented reality (AR) to inform their purchasing decisions.
One key driver behind this increasing openness to shopping tech is the consumers’ desire to know more about the health and environmental impact of the products they purchase.
Startups blending the physical and digital
Among the 3000+ startups rated by Early Metrics, several are developing solutions that allow retailers to serve customers in “phygitally”. For instance, Nyris develops computer vision and neural networks to provide information on a product from a photo taken in-store. Also leveraging computer vision and AI, Sandstar enables smart shops to offer grab-and-go shopping (Amazon Go-style).
Moreover, some startups are creating connected terminals and even robots to help out customers in-store. It’s the case with Spoon, which makes conversational bots to automate customer service in stores.
Big groups going phygital
The rising demand for cross-channel and tech-enabled retail experiences has not gone unnoticed from large players. Sephora, for instance, has developed Color IQ touchscreens that scan the surface of your skin to find your foundation match. American home improvement giant Lowe’s is using AR and GPS to provide an in-store localisation app.
Want to learn about other corporates and startups riding the phygital wave? Then download the infographic here.