Phygital is certainly not a new word “over there” (read USA), but here in Europe it is a relatively new concept. You who have a leg into the retail industry must and hopefully already have adopted into your vocabulary.
Phygital is to blend the physical into a digital ecosystem between a brand / store and the customer. By leveraging the digital power, one will be able to achieve a whole new measurability and sales enablement of physical stores that e-commerce uses.
Already in 2016, a phygital ecosystem was tested during the US Open Tennis Championship, an app that introduced real-time information on transportation, directions, amenities, food, drinks, celebrities and players available on stands. The audience asked questions in the app such as “Where can I get a drink?” Or “Where are the Taxis located?” And got quick answers to their questions.
The solution was based on artificial intelligence (AI) which helped the spectators to increase the understanding of the game, engaged and entertained the spectators to a whole new level. Mixing the physical experiences of the tournament with the digital to create new amazing moments was possible using what is called “Cognitive Analysis”. It is one of the latest trends in market analysis. Artificial intelligence was used to learn from complex real-time data to provide viewers with relevant and personalized information. This gave the organizer a better understanding of the spectators and increased the spectators’ desire to buy.
A phygital platform observes user behavior through a Big Data driven analysis, even though the core of the business remains the same: Understand your customers to deliver better products and services that meet real market needs.
So phygital may be a buzzword, but the platforms are a must for the stores to survive in the future.
Played active roles in commercial start-ups since 2001. Co-Founded 3 companies. Enjoy to share and to make things happen.