Brand design

Dobleuv.

10.3.22

New needs for a new market

In partnership with Evotivo, we designed together with JogoTech innovative solutions, mixing the best qualities of physical and digital channels and creating phygital experiencies. Let us tell you how!

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Introduction

Buying habits change over time and with them are born new needs from customers. The impact of Covid-19 transformed consumer behavior and revolutionized the way of shopping. Precisely, JogoTech is an innovative Retail Tech company, which redefines the use of the changing room by allowing customers to request sizes, colors and complete their look without leaving it.

Spain is one of the European countries with the highest rate of digital adoption, but at the same time, Spanish users are the ones who most want to return to physical consumption habits and routines.

Physical interaction in the store continues to be a very important and valued value, with a person who attends to our needs and knows how to respond to them. The stores broadcast confidencesecurity and calmness. It can also frustrate customers due to large cues or a potential lack in the stock of the shop.

Form the e-commerces users value the quickness, la inmersión and the interacción. Sin embargo, también existe el miedo o la desconfianza por no saber cómo se ve el producto y no poder tocarlo.

 

The problem

Electronic commerce has changed consumer behavior and sellers cannot add value to customers, given the new market needs:

  1. Consumers cannot continue their online activity in stores.
  2. Stores cannot sell products that are not in inventory.
  3. Purchases in store are 3 times more expensive in the last 3 years.

 

Benchmark

Nike L.A shop

“As well as being the first Nike Live destination, we will also test services that can then roll out to other Nike stores, combining digital features with a unique physical environment to create the future of Nike retail.

The products offered in the store and the development of specific product lines are reported. with the app Nike, members can redeem in-store rewards, book a product trial session, reserve products for pickup, and access curbside returns by texting the store.

Amazon go

Amazon has introduced Amazon Go stores in the US. With an app, customers can buy what they need without going to the checkout. With a virtual cart connected to the account of Amazon of the client, users and products are automatically identified and charged to the account when they leave. No check-out, no cues.

Loreal China

The app will allow customers to virtually try on their color cosmetic products before purchasing. Users will be able to save test photos, compare before and after images, and share images with other WeChat users.

 

“Technology has changed our lifestyle and our shopping habits”, Fabrice Megarbane, CEO of L’Oréal China.

 

Context analysis

  1. The customer waits The customer expects identical shopping experiences in both the offline and online channels. 60% of consumers bet simultaneously on physical commerce and e-commerce. And 33% want to make their returns in the physical store regardless of the channel through which they purchased it. tanto en el canal offline como en el online. El 60% de los consumidores apuesta de manera simultánea por el comercio físico y por el e-comerce. Y un 33% quiere realizar sus devoluciones en la tienda física independientemente del canal por el que lo adquirió.
  2. You want to take advantage of the technology available in the physical sale points of the retailers. An 33% of consumers want to use technology to locate products in the store and use self check-out methods.

The growing use of smartphones in the stores give us some very interesting data:

  1. The user is willing to share personal informationbut not on social media, to the 90% don't mind sharing their information with retailers if it guarantees them a better shopping experience.
  2. 23% want to have access to a 360º angle view of the product and 20% of those who consume food want suggestions of recipes and products. The 56% of users look for information directly in the design of the store; Meanwhile the 51% uses search engines; un 34% start the search by aggregator websites of offers; the 30% starts with forums and blogs; the 29% is directed to comparators and a 21% does this in the proper physical shop.
  3. If they enjoy a good shopping experience , the user is willing to pay more. To the 18% of clothing shoppers would like to use the technology to find out if there is many customers on a certain moment. And even 14% would like to create shopping lists that can be modified.

 

Insights

We performed three online interviews with the same questions to different people of different ages and gender. The reflections we got:

  • The physical purchase conveys greater security.
  • The shipping cost of a product it is a key variable, which can affect the purchase decision.
  • The desire that in the store there is a best selling service: that they recommend clothes, help with the size, means of payment, communicate offers and promotions, etc.
  • The online cart functionality It is another important factor, which provides practicality and allows you to view the products purchased, the shipping costs and the payment methods in the same place.
  • Online shopping also allows comparison of products, prices and benefits among several options. The personalization purchase is essential.

 

Value proposal

The Phygital experience combines the advantages of digital and physical channels, achieving a hybrid and personalized shopping experience. The customer decides in which environment each step of the purchase process will be carried out:

  1. A software platform that allows the entire purchasing process to be digital.

The customer takes advantage of his time, gets what he wants, avoids the queues, chooses the payment method and the delivery method.

2. Customers can log in by scanning a QR code on any staff or in-store device to retrieve their basket

The basket is always with them. Retrieve the products you selected in the digital channels.

3. Store inventory is always available to the customer as demand can be predicted.

The products are always available with your store as a logistics hub. Thanks to proactive demand planning, store space is optimized and stock is prepared for scheduled sessions with customers.

4. Sales associates can help customers fill their basket and checkout by using a device with AI-powered functionality.

Recommendations and personalized experiences are generated, which are adapted to the tastes and needs of the user.

 

 

 

5. The store is managed with KPIs in real time.

Know what works and what doesn't, measure the campaigns and their products. Get to know your store and your customers in depth, to adapt to their preferences. 360% digital strategy.

 

 

6. The seller becomes a personal shopper by having a device that offers personalized recommendations for his client.

It advises the customer, taking into account their preferences so that they make the best purchase, improves their experience and increases their loyalty to the brand, responding to requests in real time from e-commerce or in the physical store, knowing the details, tastes and needs of each user.

 

 

Conclusions

The phygital experience adapts to new consumer demands. Times change and with them users: their concerns, tastes and interests. Combining the best of the physical store and e-commerce, is to provide people more complete and satisfying experiences, focused on their new needs.

The empathy and the innovation are the determining factors for the design of increasingly personalized and successful experiences.

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