Phygital is transforming far more than just retail. Industries from healthcare to automotive are tapping into this hybrid approach, blending the physical and digital worlds to create smarter, more immersive customer experiences. Here’s how phygital is making its mark beyond the shopping aisle.
If you've been hanging around retail circles lately, you’ve probably heard a lot of buzz about "phygital." This concept, where physical meets digital, has been a game-changer for brick-and-mortar stores looking to stay relevant in the age of Amazon. Think about self-checkout kiosks, virtual fitting rooms and augmented reality shopping — those are all examples of phygital. But here's the kicker: Phygital isn't just for retailers.
While phygital strategies are often associated with stores looking to enhance the in-store experience, industries beyond retail are embracing this blend of the physical and digital worlds. From healthcare to automotive, phygital is driving innovation and elevating customer experiences in ways we never expected. Let’s break it down and explore how this trend is shaking things up across various sectors. A little hint: It’s not all about shopping carts and cash registers.
Phygital’s benefits beyond retail: What’s the big deal?
So, why are industries other than retail getting cozy with phygital? The benefits are pretty clear — phygital experiences create deeper, more meaningful interactions between businesses and consumers, making the customer journey more immersive and efficient.
Imagine ordering your medication online and picking it up at your local pharmacy, without waiting in line or dealing with paperwork. This is one of the many ways phygital technology is making healthcare more convenient. Online pharmacies, like those run by CVS and Walgreens, are integrating digital ordering systems with physical pick-up points to bridge the gap between online convenience and real-world needs.
This phygital approach allows customers to refill prescriptions through apps or websites, receive digital notifications when their medication is ready, and then pick it up in-store or even have it delivered. It's a seamless blend of the digital and physical worlds that’s transforming how we manage healthcare tasks.
Walgreens is pushing further into phygital territory by offering online consultations with pharmacists, who can advise on medication and treatment options remotely. Customers can then choose to have their prescriptions filled and either delivered or picked up in-store. This shift reduces waiting times, improves convenience and allows healthcare providers to focus more on personalized care.
Phygital is also playing a significant role in the broader healthcare sector. GE Healthcare is using tools such as wearable monitors, AI-powered ultrasound systems and cloud-based imaging platforms like Edison™ to combine advanced imaging hardware with real-time analytics. This hybrid approach enables faster diagnostics and personalized care plans, making the overall experience smoother and more efficient.
Phygital is revving its engines in the automotive world too. The automotive industry is increasingly turning to phygital to enhance both sales and after-sales services. Gone are the days of just viewing a car at the dealership. Now, potential buyers can experience vehicles digitally through virtual showrooms before physically test-driving them.
Think of Tesla’s test-drive experience, where customers can initiate a self-guided drive through an app, receiving real-time guidance and information on the vehicle’s features. Automotive repair is also embracing phygital solutions, with augmented reality (AR) helping mechanics diagnose problems faster. Technicians can scan a car part with a tablet and receive digital overlays providing instructions on repairs — speeding up processes and reducing human error.
The food and grocery industry has also benefited greatly from the phygital movement. Grocery shopping can now be as simple as walking into a store, grabbing what you need and walking out without ever seeing a cashier. Amazon Go stores are perhaps the most well-known example, using a combination of cameras, sensors and AI to automatically charge customers for their purchases as they leave the store.
Beyond just shopping, restaurants and food service are diving into phygital as well. Self-ordering kiosks, delivery apps and virtual menus have all become a part of the dining experience. Companies like Domino’s have mastered the phygital order and delivery experience, combining online ordering with real-time GPS tracking and smart ovens that adjust temperature based on delivery time. Customers now have more control over their experience, leading to better satisfaction and loyalty.
Non-retail phygital experiences in action
Phygital strategies aren’t just theoretical. We’re seeing real-world implementations of this approach across multiple industries and they’re making a difference.
Philips has been pioneering phygital healthcare solutions through their remote patient monitoring system, which allows patients to be continuously monitored from the comfort of their homes. Wearable devices, like heart rate monitors or smartwatches, transmit real-time health data directly to healthcare providers. While the wearable may seem like part of the digital world, it plays a crucial physical role by continuously collecting patient data.
The benefit of this phygital system isn't just that patients avoid unnecessary doctor visits — it also enhances the quality of in-person care. When patients do need to visit their doctor, the physician is already equipped with detailed health data, often accumulated over weeks or months. This means the doctor can immediately provide more informed, personalized care during the physical appointment, potentially avoiding the need for additional tests or follow-ups.
BMW’s virtual showrooms offer an excellent phygital experience. Potential buyers can tour vehicles digitally, explore the car’s features and even configure their dream car online. But the experience doesn’t stop there — once you’ve picked out your car, you can visit a dealership to test it in person. This combination of digital research and physical interaction streamlines the buying process, giving customers a seamless journey from start to finish.
Kroger has been experimenting with phygital technology to improve the grocery shopping experience. They’ve integrated digital price tags that can update in real-time, mobile apps for scanning and paying and AI-based recommendations for grocery items. This technology allows customers to blend physical shopping with digital convenience — enabling a faster, smoother shopping experience that saves time and cuts down on hassle.
Challenges of implementing phygital in non-retail industries
As exciting as phygital is, it doesn’t come without challenges — especially outside of retail.
One of the biggest challenges non-retail industries face when implementing phygital solutions is the need to modernize infrastructure or technology stack. Healthcare providers, for example, may require substantial investments in technology, such as the commerce backend, data analytics platforms and secure digital communication channels (FYI, checkout commercetools for Healthcare to solve these issues). In automotive, creating virtual showrooms demands significant tech investment and integration with physical dealerships.
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Another major concern is data security and privacy. In industries like healthcare, where sensitive patient data is involved, the need for stringent cybersecurity measures is paramount. Phygital experiences often involve large amounts of personal data being transmitted and stored, which increases the risk of data breaches.
Many industries are steeped in tradition and adopting new technology can meet resistance — whether from customers or internal staff. Some people simply prefer physical experiences, while others may struggle to navigate new digital systems. Overcoming this resistance often requires significant retraining and a gradual shift toward hybrid systems that don’t completely upend existing workflows.
Phygital is far more than retail
To answer the question, "Is phygital only for retailers?"— the resounding answer is no! Phygital has successfully extended beyond the world of retail, enhancing industries such as healthcare, automotive, food & grocery and many others. By blending the physical and digital, businesses can create more immersive, convenient and efficient experiences for their customers.
As we look to the future, phygital’s potential is enormous. From better healthcare monitoring to smarter grocery shopping, this hybrid approach is bound to continue evolving and improving industries far and wide. However, the challenges of implementation — like infrastructure demands and privacy concerns — will need to be carefully managed to ensure that phygital delivers on its promises without unintended consequences.
Phygital isn’t just a retail trend — it’s a shift in how we interact with the world. Whether you’re ordering a pizza, booking a test drive or visiting your doctor, the fusion of physical and digital is here to stay — and it’s changing everything.
To learn more about how composable commerce can enable phygital in your commerce — no matter the industry! — contact us today.