Let's get "phygital"
The physical and digital worlds, once separate, are about to intertwine
MIAMI, Florida—The other night, I had an Andy Rooney moment as I exited baggage claim at Miami International Airport. Across three lanes of traffic, I saw hoards of people crowded in the center island of the arrivals zone, desperately looking at their smartphones every few seconds to check their social media for how much longer it would be for their UBER or Lyft rideshares to arrive. Deterred by the crowd, I opted to hop into an old-fashioned taxi—for which there was no line, nor wait.
Whizzing by the impatient smartphone crowd en route to my hotel, I felt myself channeling Rooney, a curmudgeonly humorist who used to air his grievances on modern life on 60 Minutes in the 80s. I couldn’t help but ponder: Was this slavish focus on our small screens what the lords of our modern technofeudal society envisioned? Have we become so tied to our phones that we’ve stopped finding better alternatives offline? And, I thought, shouldn’t we unplug a bit more often, maybe just a little?
The evolution of social
We all know that our social media use and its platforms have been evolving over time. First, they connected us to friends and family, and more recently, they used algorithms to persuade us to connect differently, with whom, and what to buy. Then, during the pandemic, they helped many of us reach others and get things delivered to our doors, especially during lockdown.
But now, social media has evolved once more. According to the Pew Research Center, most Americans (68%) still use Facebook. However, today’s teens tend to gravitate toward other social media platforms, including YouTube (93% of teens use it), TikTok (63%), Snapchat (60%), and Instagram (59%). A growing number of social media users are looking for more than just the standard offerings we’ve all grown accustomed to in the digital and physical worlds.
According to VML in their 2024 Tomorrow’s Commerce report, “60% of consumers want brands and retailers to make both the online and offline experience more entertaining.” Beth Ann Kaminkow, Global Chief Commerce Officer at VML, suggests retail is facing a transformation: “We seem to be approaching a most exciting and broad-ranging omni-channel future, which spans physical and digital. But what comes along with it is an ever-more demanding set of consumers and customers, dictating the rules of engagement for the brands, retailers, and marketplaces they deal with.”
Businesses are already taking note by thinking more creatively and rewriting the rules of discovery in the physical and digital worlds. They’re adapting by offering incentives and experiences to engage people online and pull them offline into brick-and-mortar stores.
Sales strategies shifting
People still flock to social platforms that boomed in use during the pandemic, and they’re still shopping. However, a growing number of social media users are going online to connect with influencers who review products and services for businesses. HubSpot found that half of Millennials trust product recommendations from these influencers, while a third of Gen Zers have bought a product based on an influencer’s recommendation.
Many retailers are also redesigning the in-store customer experience for those seeking more personalization. They’re creating unique in-store experiences that customers can’t get online, including a number of deals and exclusives.
Nordstrom, for example, offers in-store discounts. LEGO offers exclusive sets that are only found in stores. Apple offers classes at no cost for customers who purchase an iPhone, iPad, Mac, Apple Watch, or Apple Vision Pro directly from them online or in person. And some grocery store chains and bagel shops select day-of-the-week discounts for shoppers who show up rather than order online for delivery.
Some brands, including Mary Kate and Ashley Olson’s quiet luxury fashion brand, The Row, are limiting what we customers can see on social media, including banning attendees from using their cell phones at their Paris fashion show this year. Photobook explains the rationale: “Social media’s ubiquity and accessibility have made it a difficult space for luxury brands to navigate effectively. Luxury thrives on rarity and exclusivity, the very antithesis of the highly democratized social media landscape.”
A 2022 IBM/National Retail Federation study says that about 55% of U.S. customers now prefer online (28%) or hybrid (27%) shopping, while 45% still like showing up in brick-and-mortar stores for the experience. Older shoppers and GenXrs are responding most favorably to in-store experiences, partly because experiential marketing on-site has become popular—strategies stores are using to provide cost-saving extras to on-site customers awarding them with special on-site discounts to personalized fashion advice not available to those ordering items from home.
Digital Detox
And for others, less is becoming a bit more when it comes to personal health and enjoyment—they’re intentionally taking time to get offline.
According to a 2022 survey of internet users in the United States reported by Statista, a third of respondents say they now take a break from their digital devices for at least two hours a day. Approximately a quarter of respondents reported engaging in a weekly “digital detox”—a period of time during which a person refrains from using electronic devices such as smartphones or computers. It’s an opportunity to reduce stress or focus on interacting in the physical world.
Many universities also encourage a detox, forbidding social media use irrelevant to what’s being taught in real-time classrooms. Some middle schools and high schools are banning smartphones altogether.
But is it reasonable to disconnect when the digital world is so inextricably tied to our modern lives? No, but it might be time to strike a better balance.
Futurist Thomas Frey says we’re moving towards what he calls a “phygital” world, which encourages even more innovation in user experiences designed to drive in-person engagement in retail and other sectors. “Phygital convergence is not merely a technological advancement.” He explains, “It is the harbinger of a new age of interconnectedness, where the boundaries between the real and the virtual are not just blurred but more harmoniously intertwined.”
Thanks for lining up all of these ideas. Much to ponder. We are clearly in a transition, with many of us struggling to find the right balance between physical and digital.
Thanks Bradley great article and observations and with two teenage children, I see everyday the invasion of digital reliance in our lives. As you mention the convenience is excellent, but Uber provides a great example of how this is changing our way of thinking (especially for young people). In order to book a ride, you need a destination, without one, the App does not work.
In the same way, children are increasingly being encouraged to form linear thinking, and staying with the Uber example, following the 'optimal route' which is App based, using traffic information. This means no more scenic, route, no more road less travelled and much less serendipity. When I was at University in Spain, I learnt the skill of hanging around with no specific direction or destination. Hours would turn into days and it allowed the mind to wonder, the wine to flow and thoughts and opinions to be formed at a young age.
In the Phygital world, this is no longer possible, as without a destination, none of the apps work. Convenience is great, but we should be clear, it does come at a cost, especially for the young.