Is it appropriate for all brands to have a “phygital” strategy at this point, when technologies like AR, VR, and AI are making it harder to distinguish between the real and digital worlds? Campaign investigates.
Imagine the following: You’re in the changing room putting on clothes while out shopping for a new outfit, but you need a different size. Do you recognize this? Imagine a day in the future when AR mirrors projected on clothing would eliminate the need for you to change at all, saving you the unpleasant task of calling out for assistance from the changing room. Doesn’t it sound awesome? You might not have to fantasize for very long, though, since what are known as “magic mirrors” or “virtual fitting rooms” are becoming more and more common. They function by letting customers approach a virtual mirror that uses augmented reality (AR) technology to instantly view how the clothes appears on them.
Similar to virtual mirrors, one of the main reasons more and more businesses are developing “phygital” strategies is the merging of the real and virtual worlds to provide fresh, immersive methods for brands to engage with their customers. According to Scott Cullather of INVNT Group, “the phygital world offers an opportunity to bridge the physical experience with a digital one.” “With the two working in partnership to bring audiences on immersive and interactive brand storytelling journeys, which are critical to cultivating the ultimate customer experience.” Not to mention that gaining deeper insights into customers and building greater relationships with them is one of the biggest advantages of digital marketing, especially when working with fashion and retail partners.
Does ‘phygital’ mean ‘every brand’? Roland, a producer of musical instruments, has succeeded in creating a link between the real and digital worlds to provide better buying experiences for customers. Customers may now visit the brand’s website to view how a piano might fit and appear in their own living spaces thanks to the development of “Roland AR” technology. By bridging the gap between online and in-store shopping, virtual Roland pianos can now be placed in customers’ homes. This solves one of the main problems that customers have when buying large musical instruments like pianos: figuring out which color will go best with their decor and how big they will fit in their personal space.
This is especially crucial as, although initially exciting, captivating, or amusing, physical encounters can lose their appeal after a while. “The sweet spot is to view phygital as more than a one-time thing, by considering how it could support the customer experience and the operational side of the business,” Lawson states. “Make it work for you and your customer.”
Meet clients where they are and intend to go. The digital world is a living encyclopaedia of experience and meaningful moments, and today’s younger generations are raised with smart devices in their hands from birth, developing foundational codes through interaction with ecosystems across Web3, AI, metaverses, NFTs, video games, live streams, and even old-fashioned movies. Authentically engaging brands are dedicated to meeting their consumers where they are and where they’re going, which is everywhere, both online and off. “Customers are investing in their digital selves more than ever, and simultaneously continue to validate our human quest for the magic of a live, in-person, moment,” Cullather adds. “Brands that develop experiences with new blended realities and additional access points will appeal to a wide range of consumers.”
Lawson uses the booking procedure for travel as an example. “Consider a situation where clients may virtually explore vacation spots using VR or AR while seated next to a knowledgeable advisor. They can ‘visit’ locations, feel the atmosphere, and choose their destination more intelligently thanks to this immersive experience.” Meanwhile, AI is being utilized in fashion retail to recommend new outfit combinations based on your own collection or to propose items in other colorways. “Imagine your favorite store giving you personalized color recommendations, wardrobe combinations based on the event you’re attending, or fitting recommendations,” Williams explains. “As these become more adopted—they become more effective, and we will see this become a normalized part of the consumer experience.”
According to Initiative Australia’s strategy manager Lauren Corner, “the rise of faux advertising—think Maybelline Tube Lash—has raised conversations around the vitality of real-life advertising.” “Phygital brings up options that we often find difficult to imagine. Does this imply that OOH partners may sell enhanced OOH without really having a billboard? Or is this merely a different stage? It’s time to go phygital in any case.”