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What Is Phygital Marketing

Physical marketing + digital marketing= Phygital marketing. Phygital marketing is the process of combination of online as well as offline strategies of marketing to create a better customer experience and increase sales.

For instance, if you’ve oversold a few products because of an inventory management problem, disgruntled customers will post negative reviews online. These negative reviews bring down a brand’s reputation and sales as 94% of consumers admitted negative brand reviews had convinced them against purchasing from a brand. 

Phygital marketing is a multi-channel marketing & sales strategy that focuses on offering an integrated & intuitive shopping experience to the customers. It doesn’t matter whether a customer shops from Mobile apps, desktop app, website or physical store, Phygital marketing focuses on creating a unified shopping experience. 

This covers everything from traditional marketing approaches like Print Media & BillBoards to cutting edge marketing strategies like Social Media Marketing, SEO & SEM. Now if you think this is something that you have never experienced before, then you are not paying proper attention. For e.g. when you receive an SMS related to Black Friday off in a physical shop, you are witnessing a Phygital marketing strategy! 

Similarly, getting email notifications from online stores when you ditch shopping at the last moment & leave your cart is also an example of Phygital marketing!

Why is Phygital Marketing Critical for Your Business?

Recently, Harvard Business Review commenced a research on some 46k shoppers to understand their shopping behaviours & channel preferences. The results were very astounding & unbelievable. 

They observed:

  • Just 7% of the users preferred only Online shopping 
  • 20% of the users preferred only Offline Shopping 
  • Whopping 73% of the users preferred both, online & offline shopping.

With these numbers, you don’t have to be a rocket scientist to understand why Phygital marketing is so crucial for your Business. Shoppers are not confined to just online & offline stores. As the new marketing channels emerge, it’s critical for retail Businesses to rethink & restructure their existing marketing strategies. The focus needs to shift to Phygital marketing. Above all, Phygital marketing is essential as it assists you in delivering an excellent customer experience through every possible channel.

Applications of Phygital Marketing

Dynamic Pricing

One surefire way to accelerate your sales is by providing your clients with discounts, and customers will mostly prefer those products with some discounts. Artificial Intelligence in Phygital marketing plays a role by dynamically setting prices of products depending on demand and supply mechanisms, customer profiles, purchase behaviours, and many other factors.

Boosting Consumer Retention

Implementing machine learning into your next machine-learning-based mobile application development is essential in today’s fast-paced world. Incorporating machine learning with AI to develop mobile apps projects, businesses can offer customers amazing offers that are specifically tailored to their needs. 

Customer Service Chatbots

Customer service chatbots are the perfect examples of how artificial intelligence is applied in digital marketing. Today, multiple artificial intelligence chatbot programs will help you to engage with your clients properly. To better your digital marketing strategies, it is strongly recommended to incorporate chatbots on your websites, Email applications, and text message applications.


Advantages of Phygital marketing are:

  1. Self Learning and Smart Actions
  2. Smart Advertising on Social Media
  3. Bots and AI-Chat on your Website
  4. Reduce Marketing Costs for Best ROI(Return on Investment)
  5. Increased Personalization for Customers.
  6. Refined Content Delivery on Social Media.

Increased Automation For Better Insights

From changing the way, one of the most important ways to drag traffic is through push notification. We generally forget to include push notifications in our strategies, but it works wonders. We can send push notifications to our website visitors who click on the allow notification button to create a direct response. 

We can send our users notifications when we publish any important post on our website or send personalised notifications like ‘Hey! Priya, we saw you searching for sunglasses. Here is a 50% discount on sunglasses only for you’.

One of the major benefits of artificial intelligence in payments is that it helps companies significantly improve the efficiency of their operational services. This is achieved through reduced payment processing time and providing highly accurate automated user insights.

Push notifications are pop-ups messages on the notification centre or the lock screen of a mobile device. They push messages as they show up directly to the client’s gadget. However, they don’t need any personal information to be sent.

Facial Recognition

Those who enjoy wearing the latest gadgets may have been using AR without even realising it. Snapchat used this same marriage to revolutionise selfies in popular culture, detecting faces and then overlaying them with all sorts of cute filters. Augmented Reality allows continuous monitoring. It means that users can wrinkle their faces as much as they want without distorting the filter.

Smart Classrooms

We all know Newton’s third law of motion, no matter how old we get. The reason is we have experienced it or seen it. It will be effortless to remember and reproduce if we get a clear visual picture of the concepts. It is way more valuable and practical than traditional textbook learning. Virtual Reality is going to help with this.

Intelligent Financial Management

The Financial Industry is something that needs a lot of data analysis and visualisation. It is yet another area where AR and VR can come into help. Virtual reality payments are coming into Reality now; with AR-enabled biometric security, virtual payment will be much more secure and safe.


Phygital marketing is probably one of the most effective & proven ways, especially for retail brands, to grow their Business exponentially. Customers are shopping from everywhere & it is critical that you reach out to them at every touchpoint. It’s possible that you might find Phygital marketing daunting at first. But once you get started, everything will fall in place. So don’t delay anymore, get started with your Phygital marketing campaigns for exponential growth. We hope this detailed guide on Phygital marketing will help you  in your quest to deliver exceptional customer experience.