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Phygital is the hybrid of ‘Physical’ and ‘Digital’, which basically describes how interconnected our offline and online lives are. Similarly on retail, the physical store would have a digital equivalent, which may offer convenience but may not be comparable to visualizing, feeling, or trying on specific products in-store. Thus, Phygital Retail is a blend of the physical and digital worlds — blurring the line between offline and online shopping experiences and brand discovery.
Brands are expected to adapt to the evolving needs of customers, focusing on meeting where they are, and where they will be. In a Facebook survey among Convenience Seekers in the Philippines, 93% are willing to pay to save time, and 83% would pay for products that free up their mind. As a result, the number of registered online businesses significantly increased from 1,753 in Q1 to 75,876 as of September 2020, according to the Department of Trade and Industry.
Despite the growing e-commerce business, the key to thriving in retail is pursuing an omnichannel strategy, in which all points of consumer contact are designed to work together towards a seamless transaction. Integrating the offline and online stores creates a new shopping experience that enhances the overall consumer journey. It is important that a brand is able intercept the customers at every stage.
In 2019, 51% of offline purchases are influenced by digital. We can expect a higher percentage for this year, which highlights the importance of online presence and consistent communication now more than ever. Here are a few strategies to consider in preparing to adapt to the new realities:
Always on Social Media
With the social media users in the Philippines being equivalent to 81% of the total population, it has become a reach platform in driving awareness especially on how brands and stores are adjusting their businesses to meet customer needs during this time.
Based on the Digital 2021 Study of We Are Social and Hootsuite, Filipinos are spending an average of 4 hours and 15 minutes each day on social media, which makes it an effective platform in communicating not just new product or service offers but more importantly new shopping options. There’s Click and Collect that provides the convenience of online shopping and quick acquisition of purchase instead of waiting for the product to be shipped, limiting the shopper’s time outside of home, and there’s Buy in Store and Deliver at Home that allows consumers to browse and make actual purchases in store, without worrying how to bring the products home.
Furthermore, social media has become the go-to platform of consumers to search about a store, brand, or product, and it is a medium where users convene for customer reviews and recommendations. Thus, it is vital that the social media pages are agile in addressing consumers’ needs and expectations.
Set campaign parameters
With the varying degree of restrictions being implemented, it is important to adjust the campaign parameters across platforms based on these.
Location
Quarantine measures differ per area and are usually decided on by the local government units. With this, it is crucial that we are knowledgeable of the lockdown limitations to be able to geo-target our campaigns to serve the areas we can while being conscious of not advertising to those beyond the currently operational ones.
Curfew
Similarly, it is important that our campaigns adhere to the curfew window being enforced by implementing ad scheduling depending on store and delivery hours.
Age-based Restriction
Lockdown guidelines include age-based restrictions, which we should consider even prior to implementation. Family dynamics have already shifted and depending on the product or service, the younger members may now be the decision-makers especially when they get to the store, while the older members have moved to online shopping. We need to consider these behavioral changes to be able to serve the correct ad to the right target audience, and at the same time reach potential new users.
Optimize e-commerce experience
Based on Google Internal Data, 71% of people say they are always on the lookout for new brands and products. Thus, it is imperative to be connected to consumers making shopping searches. Ensure that website is mobile optimized and provides a user-friendly experience.
To further push consumers to convert, incorporate drive to site efforts in social media posts with a clear call to action. Additionally, having an e-commerce campaign on top of the base plan for awareness and consideration is highly recommended to fulfill the consumer journey.
Promote your mobile app
iPrice Group’s Map of E-commerce report, in collaboration with App Annie and SimilarWeb, showed that there was a 53% increase in usage of shopping apps in the Philippines in Q2 2020 versus Q1. This establishes the need to communicate the app to propel downloads then later to boost usage.
Test and Learn Programmatic Advertising
Utilize machine learning and algorithms to target your desired consumers effectively and efficiently. Messaging may be customized to make the ads more relevant for people to respond to.
Redesigning the physical and digital stores to complement one another is one big step towards adaption. Supporting the innovative strategies with compelling media efforts will provide insights that can help mobilize action to address the customer needs in the moment.
Sources:
- https://www.thestorefront.com/mag/what-is-phygital-retail-physical-and-digital-retail-together/
- https://asia.nikkei.com/Business/Business-Spotlight/Mini-economies-Pandemic-tests-the-Philippines-mighty-malls
- Google: “Navigating your retail business through Covid-19”
- Facebook: “Emerging Trends Research”
- Google/Ipsos/Quantum Consumer Solutions: SEA Path to Purchase Research 2019
- DataReportal Digital 2021: The Philippines