The Phygital Tomorrow: Driving Culture Through Innovation – Employee Centricity and Digital Transformation

The Phygital Tomorrow: Driving Culture Through Innovation – Employee Centricity and Digital Transformation

Cynthia A. Silvia, Jennifer L. Koster, Aikyna Finch
DOI: 10.4018/979-8-3693-1634-4.ch024
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Abstract

This chapter discusses the future of the retail industry, driven by innovation, employee centricity, and digital transformation. The emerging trend of “phygital” marketing, blending physical and digital experiences for a seamless customer journey, is explored. Digitalization, digitization, and digital transformation are defined as methods for transforming the business model. Phygital marketing enhances customer engagement through interactive and immersive experiences. The impact of digitalization and innovation on various aspects of the business model is highlighted. The pandemic accelerated the shift towards phygital marketing, with social media and e-commerce playing a crucial role. By embracing phygital marketing, companies can engage with diverse customers and build lasting relationships.
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Significance Of The Paper/Study Statement

Phygital marketing can take many forms, from augmented reality experiences to pop-up shops offering exclusive in-store discounts to customers interacting with the brand online. The key is creating a unified experience that seamlessly integrates physical and digital touchpoints. One example of seamless integration is Nike's House of Innovation, which offers various immersive experiences, plays a key role in allowing consumers to interact with the brand in a new and immersive way. Immersive experiences include features like “Nike by You” customization stations and “Nike Expert Sessions,” where customers can interact with the latest products and technologies from Nike experts (Nike, n.d.).

Today's consumers not only expect high-quality products and services but also seek memorable and personalized experiences, as noted with Nike. Marketing strategies now focus on creating meaningful interactions with customers at every online and offline touchpoint. According to Mikulić et al. (2019), phygital marketing results from merging online and offline worlds. This merging of online and offline worlds is “a harmonized experience that seamlessly blends the physical and digital worlds to offer a unified experience to the customer” (p. 5). For example, retailers can use digital technologies such as augmented reality (A.R.) and virtual reality (V.R.) to alter and enhance the in-store experience while simultaneously using data collected from online channels to personalize the experience for individual customers (Pantano & Viassone, 2015).

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