• Lindsay Grace Kinniburgh

The complete guide to phygital marketing!

Phygital marketing strategies by Outsourced imagination

The beauty of marketing is that it’s always evolving.

From the growth of brand purpose marketing strategies to keeping up with the latest innovative digital marketing trends.

Marketing's influence is bigger than ever. Marketers have the responsibility of predicting, analysing and influencing consumer preferences while staying creative and navigating the constantly changing landscape.

In our latest marketing blog post, we dive into phygital meaning and answer important questions such as, what is a phygital marketing strategy? and what does phygital marketing mean for your brand?

So let’s dive in:

What is phygital marketing?

Phygital marketing is a marketing strategy that bridges the gap between the physical and digital world. It’s a combination of online and real-life experience.

Simply put:

Phygital = Physical + Digital

Phygital marketing is a unique interactive experience that smoothly blends two worlds into one.

Here’s how phygital works:

Prior to COVID-19 and subsequent lockdowns, many retail brands were already struggling to remain competitive, especially with the rise of the e-commerce market which is expected to top over $6.5 trillion by 2023.

Although 2020 is responsible for driving even more customers to shop online, people still value certain sensory aspects of the real-life shopping experience.

The space between online and physical is where phygital marketing strategies come into play. This middle ground is where brands can meet customers and deliver unique, highly-personalised memorable experiences.

And just to clarify:

"Phygital" isn’t considered another omnichannel marketing strategy, phygital marketing is a digital revolution. Phygital seamlessly connects and blends online and offline in a way that radically boosts the experience of customers.

It also has a strong connection with Millennials and Gen Z - Gen Z are recognised as the socially-conscious generation raised in the presence of technology.

Quick Fact!

If you’re wondering why Gen Z is so important to phygital, according to a survey by Kearney, this generation (currently aged 5-24 years old) can be the biggest champions of brick-and-mortar businesses.

81% of Gen Z respondents said they prefer to purchase in stores, and 73% said they enjoy discovering new products in stores.

They are the most likely of anyone to research a product online, but head to a physical store to buy it. Which is good news for retailers.

Gen Z - phygital marketing strategies by Outsourced imagination

What does this mean for a retailer's phygital marketing strategy?

Competitive forces alongside the impact of COVID-19, are pushing physical channels to augment their digital presence. Brands need to differentiate themselves through tangible touchpoints. (Albeit with social distancing in mind!)

Making physical stores more interactive transforms outlets into a playground of sensory experiences where customers can connect, play and be entertained.

Here are a few phygital examples:

  • Amazon Go

  • Nike's House of Innovation

  • IKEA

  • Selfridges, London

Amazon Go - The checkout-free shopping experience uses the latest technologies and algorithms to service customer orders. The touchless shopping experience, currently only available in the US, allows patrons to either order from their phone or walk straight out with an item. Amazon will automatically charge the customer after they leave.

Nike's House of Innovation - The famous sports store in Shanghai is one of Nike’s biggest innovation moments. The House of Innovation creatively combines personalisation with digitally-connected shopping journeys.

The lower floor features hyper-local, exclusive products while the top-floor is reserved for unparalleled personalisation experiences only accessible to NikePlus members. A digitally enabled Centre Court sits among the futuristic retail space.

IKEA - The global furniture brand recently announced the opening of 50 new stores - including in the UK.

Their phygital marketing strategy includes revamping the IKEA app to incorporate elements such as “Place” - an augmented reality function that provides personalised recommendations and helps customers visualise how a piece of furniture will look in their home.


IKEA isn’t just focusing on maintaining the shopper experience while offering digital solutions. The retail giant also understands the importance of brand purpose and is placing an emphasis on sustainability alongside their phygital marketing strategy - a shift that the retailer thinks will keep them relevant and profitable.

As a brand purpose agency, we too agree that IKEA's smart sustainable strategy will unleash new business opportunities for the brand.

Selfridges - The famous London department store is another pioneer breaking the boundaries between the physical and the digital.

In a recent marketing campaign, Selfridges London collaborated with a range of artists, designers and photographers for a futuristic campaign showcasing products via virtual worlds dreamed up by digital artists – offering a modern take on traditional fashion marketing.


What does a phygital marketing strategy mean for your brand?

There's little question, better user experience leads to evangelism and higher sales. Implementing a phygital marketing strategy is a growing marketing trend. However, it’s important to remember that there's no one-size-fits-all approach when it comes to marketing.

Each country, market, demographic and lifestyle is different and marketers must tailor strategies to fit their audience.

Small businesses and big brands should have a clear and compelling marketing strategy and a deep understanding of how to satisfy the empowered customer generation before jumping in and getting phygital.

Are you ready to talk about your marketing strategy for 2021?

Whether you're thinking about a phygital marketing strategy or eager to find out more about brand purpose marketing solutions, why not take a moment to talk to us at Outsourced imagination?

Click here to arrange your free 30-minute marketing consultation with Outsourced imagination.

Thanks for dropping by our brand purpose marketing blog.

Stay safe out there!

Lindsay Grace Kinniburgh

Founder & CMO at Outsourced imagination


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