Maintaining attractive windows is a time-honoured tactic for drawing customers into your shop. In a world where shopfronts are both real and online, businesses are taking this a step further by adding a digital element to their displays. It’s a concept known as ‘phygital’ – a portmanteau of the words physical and digital.
These interactive phygital experiences that use technology to bridge the physical and digital worlds can help drive sales and make your brand more memorable.
Turning tyre kickers into buyers
Volkswagen is an example. In 2024, the automobile brand located an intricately detailed miniature dealership standing just 28 centimetres tall in the Sydney CBD. Passers-by were invited to scan QR codes to unlock an augmented reality (AR) experience on their smartphones.
Giving shoppers a chance to explore the company’s new SUV range, customise their own vehicles and visualise them in real-world settings was a stunning success from a marketing perspective, according to immersive technology expert and Zebrar co-founder Simone Clow.
“The campaign drove a significant spike in website traffic, thousands of AR interactions and car sales,” Clow says.
Providing opportunities to interact and explore
Going phygital isn’t just a tactic to sell more goods, it can also be a highly effective way to amplify and enhance services-based offerings. Clow says the hugely popular Creatures of Australia exhibit at Sydney’s Olympic Park saw visitors presented with torch-like devices which, pointed at screens, allowed them to engage with animals and their habitats. Meanwhile, children were invited to engage with interactive floor projections that reacted to their every move.
“Harnessing AR in these sorts of innovative ways can open up incredible opportunities for tourism and education businesses,” Clow says.
Investing in experiences that appeal to next generation customers
While large scale activations are popular with large businesses, small businesses can take a similar approach, albeit in a more modest, budget friendly way. It can be an especially effective strategy with younger demographics.
“With Gen Z and Gen Alpha growing up in an interactive, digital first world, phygital is quickly becoming an expectation, rather than an innovation,” says Clow.
“As tech companies race to make smart glasses mainstream – likely within the next three to five years – the potential for phygital to further evolve is limitless.”
Safeguarding your growing business in 2025 and beyond
There’s no better time to review your insurance cover than the start of a brand-new year, particularly if innovation and growth are on your agenda for 2025. If you’d like some help to determine whether your current policies remain suited to your business’s needs, contact your Steadfast broker today.
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