Phygital Experiences to Drive CX in 2023 and Beyond

Melding the Best of Physical and Digital Customer Experience Is on the Agenda for Many Companies

Physical digital customer experience

In just a few years, omnichannel engagement strategies have morphed from a nascent concept to becoming table stakes for most consumer-facing organizations. Largely driven by the shift to digital communication channels, such as SMS, webchat, and mobile applications, consumers have demanded the ability to interact with companies on their own terms, and through the channels the customers themselves prefer.

The next step in the evolution of customer interaction and engagement is likely to be in the form of so-called “phygital” experiences, which are defined as experiences that meld the best elements of digital experiences (immediacy, convenience, and personalization) with the best elements of the physical world (immersion, interaction, and experiential).

Key examples of phygital experiences include the following technologies and techniques, which are designed to combine digital and real-world experiences in ways that enhance the customer experience by enabling more seamless, friction-free, and interactive engagements with a product or service offering.

Augmented Reality: This technology overlays additional information or images onto real-world pictures or video, to enhance the experience of the user. A key use case can be found in the head-up displays in automobiles, which today superimpose automobile and directional information into the driver’s field of vision, but will integrate more complex data and enhanced imagery in the vehicles of the future.

Virtual Reality: Through the creation of virtual environments that simulate physical establishments such as clothing stores or supermarkets, this technology allows the user to experience a real-world place from the comfort of their home or device. Virtual seating models of stadiums, arenas, and theaters, which allow a user to select a seating location from a 3D model, and then see what the approximate view of the performance space will be from the seat, are great examples of a phygital experience being used today to improve the overall real-world physical experience.

Beacons and QR Codes: Beacons are Bluetooth devices that are installed within stores and send information to mobile devices, can include product information, and can also be used to help shoppers navigate throughout the store or space. QR codes, meanwhile, are two-dimensional barcodes that store data encoded as links to download an app or access a web page, allowing the customer to quickly access more information. In both cases the objective is to provide additional information, guidance, or data they can use to enhance their shopping or physical experience.

Go supermarkets: Largely deployed by Amazon, these supermarkets allow customers to scan products they want to purchase, and then automatically pay for them as they leave the store. The combination of selecting products in a store, and paying for them digitally is designed to eliminate key friction points—waiting in line to physically check out, scanning products, and then bagging them.

Digital Screens: The use of digital screens offers numerous options when it comes to establishing new experiences for consumers, such as virtual clothing fitting rooms or by connecting customers in their home with live experiences an ocean away. Great examples of this technology are the exercise-focused Mirror screens, which let users interact back and forth with a live trainer.

Making a connection

Phygital experiences must be immediate, connected, and engaging to be successful and ensure a positive customer experience. Immediacy is critical in a world where instant gratification is the norm, and consumers will not accept phygital experiences that force them to wait or queue up.

Consumers also demand connected phygital experiences; all interactions should feel like a two-way conversation with the brand or organization, and this interaction should feel natural and supportive of the customer’s needs and goals. Secondly, each element of the phygital experience – both online and physical – should be connected. Quality should not drop off or be lost when switching between the two realms.

Perhaps most importantly, it is important to make phygital experiences convenient, fun, and relevant to customers. If the experience is not engaging or relevant to the customer, the effort to create the experience will be wasted, and the efforts could be seen simply as a poor attempt at hopping on the phygital bandwagon.

Ultimately, the goal of phygital experiences is to enhance engagement with a brand or organization. Prospective use cases for phygital should be vetted to ensure they underscore the key messaging and brand promise of the organization, reduce or eliminate points of friction, and enhance a customer’s experience, allowing them to receive a better sales, marketing, operational, or support experience than a digital-only or physical-only experience.

Author Information

Keith Kirkpatrick is VP & Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.

He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.

In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.

He is a member of the Association of Independent Information Professionals (AIIP).

Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.

Latest Insights:
Oracle Makes the Case for AI Inside Everyday Leadership Workflows
July 2, 2026
Article
Article

Oracle Makes the Case for AI Inside Everyday Leadership Workflows

Keith Kirkpatrick, Research Director at The Futurum Group, examines how Oracle Manager Edge embeds AI-powered coaching into Oracle Cloud HCM, bringing real-time guidance into managers' daily workflows and strengthening Oracle's enterprise AI...
Domino Data Lab From MLOps Platform to Governed AI Application Factory
July 2, 2026
Article
Article

Domino Data Lab: From MLOps Platform to Governed AI Application Factory

Nick Patience, VP and Practice Lead, AI Platforms at Futurum, examines Domino Data Lab's pivot to governed AI application delivery, its agentic AI governance framework, and what the strategy means for regulated...
Siemens and IFS Announce Alliance to Advance Industrial AI
July 2, 2026
Article
Article

Siemens and IFS Announce Alliance to Advance Industrial AI

Siemens and IFS have partnered to advance Industrial AI solutions, merging Siemens' industrial automation depth with IFS's AI-embedded ERP platform. The alliance targets asset-intensive industries as enterprise software demand accelerates....
Lakebase and LTAP Challenge Database Orthodoxy, Are Monoliths Finally Obsolete?
July 2, 2026

Lakebase and LTAP Challenge Database Orthodoxy, Are Monoliths Finally Obsolete?

Databricks revolutionizes analytical platforms through Lakebase and LTAP, unifying transactional and analytical workloads. Research shows 73.6% of organizations are increasing spend, signaling a major shift from legacy databases....
Latest Research:
The Enterprise Imperative for Digital Sovereignty Architecture, Control, and Competitive Advantage
June 17, 2026
Research
Research

The Enterprise Imperative for Digital Sovereignty: Architecture, Control, and Competitive Advantage

In our latest Market Brief, The Enterprise Imperative for Digital Sovereignty: Architecture, Control, and Competitive Advantage, completed in partnership with IBM, Futurum Research explores why AI is changing the sovereignty...
Data Gravity in the Age of AI Engineering the Mission-Critical Engine for Autonomous Workloads
June 11, 2026

Data Gravity in the Age of AI: Engineering the Mission-Critical Engine for Autonomous Workloads

In our latest report, Data Gravity in the Age of AI: Engineering the Mission-Critical Engine for Autonomous Workloads, completed in partnership with Oracle, Futurum Research explores why fragmented data architectures...
The Autonomous IT Imperative
June 2, 2026
Research
Research

The Autonomous IT Imperative

In our latest Market Report, The Autonomous IT Imperative, completed in partnership with Tanium, Futurum Research examines why traditional IT operations and security models are reaching their limits—and how Autonomous...

Book a Demo

Welcome

The vision behind everything in Futurum’s Custom Research practice is this: research should show you what is happening, what comes next, and what to do about it. It should be personal to each audience, easy for people to grasp, and structured so LLMs can reason over it accurately. And it should be fast and turnkey; you want answers now, not another project to carry for quarters.

Whether you are defining business, channel, or go-to-market strategy; evaluating vendors or justifying ROI; or commissioning research to fill an emerging market need, we have your back, with a program that answers your questions with the objectivity and credibility to drive real decisions.

To do it, we bring unmatched data to bear: Futurum research, surveys, and market projections; validated market feeds; ETR’s 15 years of insight from 10,000 technology decision-makers; G2’s buyer and user data; and what our analysts hear every day. Add leading primary collection, from AI-moderated voice interviews to surveys and analyst-led interviews, all turnkey, and every project comes out credible, nuanced, and actionable.

And we don’t just drop the results in your lap. For internal work, we provide analyst-led sessions, interactive dashboards, and a range of formats. For market-facing work, Futurum delivers turnkey activation and amplification that actually gets seen, by people and by LLMs, through our media and share of voice. This is research that moves decisions and markets.

We will meet you wherever you are, from a fast-turn brief to a multi-year program, and shape the work to your goals, timeline, and budget. The right program for your moment.

If any of this is useful, I would love to talk.

Benjamin Brown, VP Custom Research, Futurum Research

Benjamin Brown

VP, Custom Research · The Futurum Group

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.