24763 Chap.7 Omnichannel Retailing, Phygital and the Digital Shelf
Omnichannel Retailing, Phygital and the Digital Shelf
Why retailers invest
A study of 46,000 shoppers found omnichannel customers spent more per store trip and online, and made more repeat visits, than single-channel customers. Customers now use almost six touchpoints on average.
Phygital and the shelf
Phygital merges physical and digital into one hybrid experience, unlike omnichannel, where channels stay distinct.
The digital shelf is where shoppers discover and buy online, and the Workshop 3 scorecard rates its categories from 1, very important, to 5, not important.
Technology in the aisle
Module 4 examples include digital experience stores built from customer data, checkout-free shops that charge an account as people leave, and stores stocking items rated highly online.
Each adds convenience and returns data about the in-store journey.
Where it shows up in assessment
Both the group rubric and the prototype rubric mark how well you apply digital shelf thinking to the case company.
What this chapter covers
- 01
Omnichannel retailing defined
- 02
The value of omnichannel shoppers
- 03
The Shopify yes-questions
- 04
Phygital versus omnichannel
- 05
Digital experience stores and checkout-free shops
- 06
The digital shelf scorecard and its four dimensions
Worked example · free
Translate the omnichannel spending uplift into dollars
- 1Omnichannel customers spent 4% more per store trip: 80 × 1.04 = $83.20.
- 1Prior online research was linked to 13% greater store spending: 80 × 1.13 = $90.40.
- 1The research uplift is worth 90.40 − 83.20 = $7.20 more per trip than the general omnichannel uplift; these are averages from one retailer’s shoppers, so treat them as a direction, not a forecast.
Key terms
- Phygital
- A hybrid experience that merges physical and digital elements into one, beyond separate channels.
- Clicks-to-Bricks
- An online retailer opening physical stores to gain in-store journey data and first-party relationships.
- Frictionless
- A scorecard dimension for clear, efficient, easy experiences that reduce hesitation or confusion.
Omnichannel Retailing, Phygital and the Digital Shelf FAQ
Is phygital just another word for omnichannel?
No. The module says an omnichannel experience gives seamless access to many channels that remain distinct, while a phygital experience merges physical and digital into something new, such as augmented reality inside a store. It also collects data on how people move, which raises privacy questions.
How does the digital shelf scorecard work?
You rate seven categories, from product information clarity to call to action, on a scale where 1 is very important and 5 is not important, for a firm about to build an omnichannel strategy. The categories group into frictionless, curated, social and experiential, and you finish with two key issues and two key opportunities.
What did the Harvard Business Review study find?
Compared with single-channel customers, omnichannel shoppers spent 4% more per store trip and 10% more online. Using four or more channels added 9% in store, prior online research raised store spending by 13%, and they made 23% more repeat trips within six months.
What did the Shopify questions ask a retailer?
Whether a customer can scan an item in store and buy it later at home in another size, whether a style found on social media can unlock an in-store coupon, whether store purchases trigger messages about similar styles, and whether people can find the brand on a marketplace and still buy in person.
Why do online retailers open physical stores?
The module calls it a clicks-to-bricks approach. Physical sites give an online retailer data about the in-store journey and deepen its first-party relationship with customers, which helps the brands on its platform personalise at scale. Some of the stores in its examples have since closed.
What are the four dimensions on the digital shelf scorecard?
Frictionless covers clear, efficient and easy experiences; curated covers organised, tailored and well-aligned presentation; social covers community, co-creation and shareable experiences; and experiential covers emotion, immersion, narrative or ritual. The seven scorecard categories each sit in one of the four.
Assessment move
Rate the digital shelf of a brand you buy from using the seven categories and the reversed scale, then write its two issues and two opportunities. Add one phygital idea and state both the convenience it adds and the data it collects. Add one phygital idea for your persona and write both the convenience it offers and the data it would collect.
When you rate categories, write one sentence justifying each number, because the scorecard is only persuasive when the ratings are argued rather than asserted.
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