Figital retail replaces digital

The omni-channel model of digital-retail will be replaced by a new concept - phygital (from the combination of the words "physical" and "digital").This forecast was shared by Olga Sumishevskaya, Director of Consulting Services for Consumer Goods and Retail Companies at the Retail Experience conference.

The preferences and behaviors of shoppers are changing - it's obvious to everyone. And retail understands that it's IT that allows customers to buy anywhere, anytime, the way they want. That's why retailers are racing to develop technology portfolios. What's wrong with that?

Today, 76% of chains say that the importance of customer loyalty is starting to grow significantly. A loyal customer is a retailer's main asset. And 43% of retailers believe their customers are very loyal. However, researchers' observations show that today's shopper is more disloyal than ever. Only 7% of shoppers spend 90% of their shopping budget at one retailer, 47% don't ask for help and go to a competitor if the product they want is not available... Meanwhile, 91% of shoppers choose retailers who remember them and can help according to their needs. That is, they value the personalized touch that technology can provide.

But also 67% of customers still want to see and touch the product before they buy, and 64% of shoppers spend more after a personal touch with a consultant.

And at the same time, 30% of customers walk away from a salesperson after the first negative experience, and 50% forget about the salesperson forever after the second negative experience. So, for example, poor service or unprofessional salesperson can nullify all the efforts that have been invested in advanced IT developments.

PwC experts believe that a retailer can retain a client for a long time if they give him the most useful and innovative consumer experience and create a wow-effect at every point of contact - both online and offline. This is the essence of the phygital business model: the maximum consumer experience is created through both technology and physical impact.

Digital technology provides fast and convenient payment methods, personalized offers, virtual experiences, and more. In the world of physical contact (physical) with the client work experienced sales assistants, customers create a pleasant atmosphere, including recreation areas, children's corner, a cafe, provided personal services (stylist, beautician).

And examples of the implementation of phygital-concept already exist. Retailers are transforming stores into places that create brands and unique customer experiences. Walmart has developed a retail-city concept with restaurants, entertainment and service centers. The House of Vans, which opened in an abandoned London subway station, has a skate park, galleries, a concert venue, a bar and a movie theater.