University of Technology Sydney · FACULTY OF MARKETING

24763 Chap.7 Omnichannel Retailing, Phygital and the Digital Shelf

- one subject, every graph, every model, every mark
6 Chapters4-page Bible
Our own words - no uploaded lecturer files
Updated for this semester
Chapter 7 of 12 · 24763

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.

In this chapter

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

Q [3 marks]. AskSia-authored practice. A single-channel customer of a homewares retailer spends $80 per store trip. Using the Harvard Business Review findings in Module 4, estimate the store spend per trip of an omnichannel customer, and of an omnichannel customer who researched online first. The marks shown are an AskSia study allocation, not an official University marking scheme.
How much more omnichannel shoppers did, in percentage terms.How much more omnichannel shoppers did, in percentage terms. Against single-channel customers they spent 4% more per store trip and 10% more online; users of four or more channels spent 9% more in store, prior online research lifted store spend by 13%, and repeat store trips rose 23% within six months.Store spend per trip+4%Online spend+10%4+ channels, store+9%Prior online research+13%Repeat store trips+23%
How much more omnichannel shoppers did, in percentage terms. Against single-channel customers they spent 4% more per store trip and 10% more online; users of four or more channels spent 9% more in store, prior online research lifted store spend by 13%, and repeat store trips rose 23% within six months.
  • 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.
About $83.20 per trip for an omnichannel customer and about $90.40 for one who researched online first, against $80 for a single-channel customer.
Sia tip — Apply a percentage uplift by multiplying by 1 plus the rate; adding the percentage to the dollar figure is the usual slip.
Glossary

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.
FAQ

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.

Study strategy

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.

Working through Omnichannel Retailing, Phygital and the Digital Shelf in 24763? Sia is AskSia’s AI Marketing tutor — ask any 24763 Omnichannel Retailing, Phygital and the Digital Shelf question and get a clear, step-by-step explanation grounded in how 24763 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

A+Everything unlocked
Unlocks this Bible + all 48 of your University of Technology Sydney subjects - and 1,000+ Bibles across every Australian university.
Sia - your 24763 tutor, unlimited, worked the way the exam marks it
The full 4-page Bible + practice bank with worked solutions
Chrome extension - sync your LMS so Sia knows your deadlines
Bilingual EN / Chinese on every Bible and every Sia answer
$0.99 Trial
30-day money-back · cancel in one tap · how it works