Let’s Get Phygital! Effectively connecting the in-store and digital shopping experiences  

Produced by Kyndryl

Dimas Gimeno, Founder and CEO of Wow Concept, discussed the importance of "phygital" retail - the integration of physical and digital channels - in the modern retail landscape. He notes that both traditional retailers and digital natives are recognizing the importance of integrating both channels in order to grow, and the way to do this is to "reset everything" and start from scratch. Dimas argues that phygital retail can improve operations through cost reduction, conversion increase, increased loyalty, client satisfaction, and marketing strategy optimization.

Wow Concept, a new retail concept in Madrid, focuses on offering trendy, new and exclusive brands that are often digital-native, and provides a "one soul proposition" to customers of all generations. Dimas explained that Wow aims to differentiate itself from other retailers by focusing on lifestyle brands that are trendy, new, and exclusive. Wow brings both digital native vertical brands and aspirational traditional brands together to help connect them with younger generations. Wow is also designed to be "phygital," meaning there are no barriers between digital and physical operations, allowing them to get the best of both worlds. Dimas stated that Wow's operations allow for a significant reduction in the cost of acquisition and also improve conversion rates, customer loyalty, and satisfaction. It's also been optimized for marketing strategy.

Kayla Broussard, U.S. CTO - Consumer & Travel, Distinguished Engineer at Kyndryl discussed the concept of "phygital", which is the integration of the digital and physical worlds to provide customers with a seamless shopping experience. The phygital approach aims to meet customers where they are, at any time of the day, through a connected journey across both online and offline platforms. Examples of phygital technologies that improve customer experiences include intelligent dressing rooms, live scan technology, digital gamification, interactive digital signage, and live commerce.

Intelligent dressing rooms and live scan technology address the problem of customers buying multiple sizes of the same product online, leading to higher return rates and wastage. These technologies use 3D scans to help customers find the right size, resulting in improved conversion rates, reduced returns, and increased basket size. Digital gamification makes shopping fun and exciting, improving customer engagement and loyalty. Interactive digital signage catches shoppers' attention and influences purchasing decisions, while live commerce brings the physical aspects of the store to e-commerce, generating high conversion rates.

Kayla also emphasized the importance of data in the phygital world. She said the success of phygital relies on the data collected from various touchpoints across the digital and physical journey. This data includes customer shopping carts, browsing history, in-store sensors, and customer check-ins, as well as online reviews and feedback from influencers. The data collected helps retailers understand their customers better and improve the customer experience.

FEB 2023