Exploring ‘Phygital’ Experiences: Bridging Physical and Digital CX​

Phygital experiences combine physical and digital interactions. They create a connected customer journey by linking in-person services with digital tools like apps, websites, or devices. The goal is to offer a seamless experience across all customer touchpoints.

If your business lives only in the real world, it’s missing half the conversation! In 2025, customers don’t just walk into stores or click on websites. They move between both (often in the same transaction). 

This is where phygital (or phygitaux) experiences come in! It is not about replacing your shop with an app or adding screens for the sake of looking modern. It’s about blending physical and digital tools to create a connected experience for your customers. 

And it’s trending? Studies show that the total addressable market (TAM) for phygital solutions is projected to reach $216 trillion by 2030. 

Want to know more? In this article, let’s first understand the phygital meaning, its five elements, and why they are relevant in 2025. Lastly, we will learn how you can migrate to phygitaux in simple steps. 

What Are Phygital Experiences?

Phygital (also known as Phygitaux) = Physical + Digital

A phygital experience is when a business combines physical and digital tools to serve customers. It does not mean replacing physical experiences with digital ones! Instead, it means linking both in a way that makes sense for the customer.

Here, the goal is to create a smooth and connected experience, whether the customer is visiting:

• In-person
• Online (or both)

Popular Phygital Examples

Since it is a novel concept, let’s understand it better through various examples:

The Five Elements of Phygitaux

Phygital infrastructure is a mix of:

• Physical tools 

• Digital systems

This kind of setup is particularly useful in areas where both physical work and digital control are important. To create phygital experiences in your business, you must follow the five elements of phygitaux. 

They are the key building blocks that allow a business to connect its physical and digital experiences. Let’s study them:

1. Think Like One Business, Not Two Worlds

Phygital is omnichannel! This means your business should not treat physical and digital channels as separate. For example, 

• Say you sell in-store and online.
• Now, both should work together (instead of competing).
• Also, your staff, business processes, and current tools must support both channels. 

In phygital, a customer might:

• Browse online but buy in-store

• Start a conversation in person and continue it through email

Ideally, you should design every process to support the full customer journey (no matter where it begins or ends). This avoids confusion and gives the customer a smoother experience. To practice phygitaux, you must think of your business as one connected system, not two different teams or platforms!

2. Design for the Way People Actually Think!

To design better experiences, you need to understand how customers think and behave. That’s because people have habits that shape how they make decisions. For example, 

• Many people usually look to the right first.
• So, placing screens or promotions on the right side of your store might help.

3. Follow the Money, But Together, Not Separately!

Don’t measure your store’s success by looking at online and in-person sales separately. Instead, treat all sales as part of the same system! Customers move between channels and those movements influence final purchases. 

If someone learns about your product online but buys it in your store that sale should still be partly credited to your digital team or tool. Thus, set your budget and goals across all channels (not just one).

4. Balance the Tug-of-War Between Physical and Digital

You will face decisions where you must choose between:

• What is best for your physical store?

• What is best for your digital tools?

You cannot always choose both! Instead, aim for a balance that works across both areas. To do this, create a clear set of rules or design principles. These let you make decisions without relying only on opinion or habit. 

For example, when launching a promotion, ask how it impacts both in-store and online experiences. 

Also, avoid letting one channel dominate every decision. A good phygital strategy comes from finding the middle ground that supports your entire business.

5. Build, Test, Improve! Repeat Forever

You cannot build a perfect phygital business overnight! That’s because customer habits and technology will change. Your business must keep adjusting to stay current. This is not a one-time project. It’s an ongoing process that needs attention. 

For example, 

• Say you might start with a simple QR code system.
• After that, add an app later.
• Then improve in-store displays

Please note that each step builds on the last! Phygital is a long-term strategy. It grows with your business and is not a quick fix or final product.

Why Should You Care About Phygital as a Business Owner?

Did you know? Venture capital investments in augmented reality (AR), 3D technology, and IoT reached nearly $90 billion over the past decade. There were over 16,000 deals closed! That’s largely because customers now use both online and offline options when:

• Buying
• Booking
• Asking for help

Most of them want to start online and finish in-store (or the other way around). As a business owner, if you only focus on one side (just digital or just physical), you may lose customers.

Let’s gain clarity and understand why offering phygital is necessary in 2025:

• You can keep current customers happy.
• You can give them flexible ways to buy or interact with you.
• You can attract new customers who prefer digital tools but still want to shop locally.

Planning to go Phygitaux? Please note that you don’t need to spend heavily! Even small steps (like QR codes, online bookings, or text alerts) count as phygital.

How Can You Migrate to Phygital Experiences? 

Studies show that major tech companies (like Microsoft, Apple, Alphabet, Meta, Amazon, and ByteDance) have collectively invested more than $160 billion in the phygital space. 

Do you also want to practice phygitaux in your business? Let’s learn how you can do so in these easy steps:

Step I: Understand Your Customer Journey

Map how your customers:

• Find you
• Contact you
• Buy from you
• Stay in touch

By doing so you will know where to add digital tools without changing what’s already working.

Step II: Start With Simple Digital Add-Ons

Add small digital tools that support your physical business. You can do so by:

• Adding QR codes in your store to show product info or videos.
• Letting customers book appointments
• Using a POS system that tracks both online and in-store sales.
• Allowing customers to ask questions through WhatsApp or your website.

Step III: Connect Online and In-Store Offers

Make sure your promotions, pricing, and service are connected online and offline. That’s because customers move between channels! By doing so, you keep their experience smooth and professional. 

You can do the following:

• Offer click-and-collect, buy online, pick up in-store.
• Let customers return online orders in your shop.
• Share the same loyalty points system across channels.

Step IV: Train Your Team to Use Digital Tools

Technology only works when your team uses it confidently! Thus, make sure your staff knows how to use the new tools and explain them to customers. 

Perform these steps:

• Teach staff to help customers scan QR codes.
• Show them how to track customer orders digitally.
• Assign someone to answer online messages daily.

Step V: Collect and Use Customer Data (Responsibly)

Use digital tools to understand what customers like, buy, and ask for. Do the following:

• Use a CRM tool to track repeat customers.
• Monitor what products are clicked on or searched online.
• Ask for feedback through digital surveys.

Let Clicks Meet Bricks! Go Phygital in 2025 With Atidiv.

Phygital experiences are no longer optional! Most customers now try to shift between physical and digital touchpoints. Thus, your business must meet them with the same flexibility. 

By adopting a phygital strategy, you can:

• Build stronger customer relationships
• Boosts loyalty
• Drives revenue

But to make this transition successful, you need reliable partners. That’s where Atidiv comes in! Our expert team uses real-time analytics to provide exceptional customer support and align every interaction with your customer’s expectations. 

With an average QA score of 98% and a 4.8 CSAT rating, Atidiv builds quality into every conversation. Plus, by outsourcing with Atidiv, you can save up to 60% on support costs. 

Recently, we partnered with a client and saved over $1.3 million annually. Go phygital with Atidiv today!

FAQs

1. Isn’t going phygital expensive and only for big brands?

Not at all! You don’t need any advanced tech to start. You can begin with simple tools like:

• QR codes
• WhatsApp chat
• Appointment booking systems

Additionally, many small businesses go phygital in phases, based on budget. So, you can also start small and scale gradually.

2. How do I know which digital tools my customers actually want?

Begin by mapping your customer journey. See where delays or confusion happen. You can identify this by asking customers for feedback online or in-store. 

Next, choose tools that solve real problems (like long wait times or limited info) rather than just looking trendy!

3. I sell both online and offline. How do I keep them in sync?

You can use systems that connect both channels, like a unified POS or CRM. Then you must align pricing, promotions, and return policies across platforms. 

This way, customers get a smooth experience and your team avoids confusion between online and in-store operations.

4. What if my team isn’t comfortable with digital tools?

That’s a common challenge! Start with basic training. Then, focus on one tool at a time, such as teaching:

• QR code scanning 

• Online order tracking

Try to encourage questions and assign a digital champion in your team who can help others.