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Future of Marketing Institute

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How the Digital Transformation is Enhancing the Customer Experience

May 30, 2022 By: FMI Staff

As technology and digital services evolve, retail stores are expected to create seamless, omnichannel experiences that synchronize in-store and digital features. This mix of physical and digital, dubbed “phygital,” is vital for enticing future customers, with 73% of buyers pointing to customer experience as an essential factor in their purchasing decision.

A recent StarDust article outlines phygital customer experience changes in retail, touching on trends like chatbots, personalized discounts, and cashier-less stores. These changes seem to fall under four categories: artificial intelligence, the internet of things, augmented and virtual reality, and omnichannel and mobile experiences. With these advancements, the way customers shop is transforming. For instance, RFID smart mirrors can provide customers with instant product information, sizing options, and recommendations while also being able to summon store assistants immediately. Companies like Adidas, LEGO, and Ikea have made strides in AR and VR marketing. In particular, LEGO has amazed customers with a mobile app that allows users to play with virtual legos.

While customer experience has always been integral to brick-and-mortar stores, the way it looks is drastically changing. Physical customer experiences are not enough to capture audiences’ attention, but going entirely online is also ineffective. The future of customer experience is phygital. How will brands continue to build in this phygital world?

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