Travancore Analytics

Beyond Reality: Creating Phygital Magic with AR and VR Technologies

August 14th, 2023

Category: ar vr,virtual reality

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Posted by: Team TA

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The convergence of physical and digital experiences has given rise to a new realm known as “phygital,” where the boundaries between the physical and virtual worlds blur. At the forefront of this trend are Augmented Reality (AR) and Virtual Reality (VR), two transformative technologies that offer immersive and interactive experiences. By leveraging the capabilities of AR and VR, businesses are creating innovative phygital experiences that captivate audiences and drive engagement. They ensure that customers’ demands are addressed, and their expectations go above and beyond by offering highly personalized and seamless experiences. Phygital experience with AR and VR are no longer just a fad, they’re an essential part of business growth and sustainability.

Many shoppers who frequently visit physical stores indicated in PwC’s 2023 Global Consumer Insights Survey that they would be eager to see in-store entertainment and sample immersive digital experiences. However, 28% still desire the ability to schedule private consultations with a sales representative or personal shopper. Customers desire both digital and interpersonal interactions. By integrating digital services into the physical touchpoints, businesses can answer this call and gain a competitive edge. Brands are delivering these phygital experiences in a variety of methods, including contactless payments, in-store ordering kiosks, and curbside pickup choices. Airports, banks, restaurants, and many more businesses now frequently use these solutions.

The Perks of going Phygital with AR/VR


  1. Improved Customer Experience:

According to a recent Salesforce study, more than half of customers prefer to interact with brands via digital channels and purchase online rather than in person. That also indicates less than half of customers prefer to interact and shop in person. The company can be losing out on half of its target market if it exclusively engages with clients online. To appeal to both parties, Amazon Go designed its cashier-free convenience stores.

Furthermore, people spend more than twice as much time in digital environments than in physical ones during their free time. Phygital experience with AR and VR enable users to visualize products in their environment, interact with virtual elements, and make informed decisions. An example is the Sephora Virtual Artist app, which utilizes AR to allow users to try on makeup virtually, assisting them in finding the right products.

  1. Enhanced Customer Engagement:

AR/VR development solutions provide highly immersive and interactive experiences, capturing users’ attention and driving engagement. By blending the physical and digital worlds, businesses can create compelling narratives, offer interactive content, and increase customer participation. For instance, luxury labels like Dior, Gucci, and Fendi have adopted Snapchat’s 3D viewing and Augmented Reality (AR) try-on filters to appeal to younger demographics.

  1. Boosts Loyalty and Sales

Phygital experience with AR and VR technologies opens new avenues for innovative marketing campaigns. Brands can create interactive advertisements, gamify experiences, and offer immersive storytelling, capturing audience attention and fostering brand awareness. An example is the “Share a Coke” campaign by Coca-Cola, where users could scan Coke cans with an AR app to reveal personalized messages and animations.

Brands employ these at-home phygital experience with AR and VR to entice shoppers into their physical stores.  For instance, BMW makes buying a car more enjoyable by providing an AR application that enables customers to customize the colors and designs of cars. Customers can even try out driving cars using the available VR headsets.

  1. Access to Customer Behavior Data:

AR/VR development companies use phygital experiences for the collection of valuable data about user behavior and preferences. Businesses can leverage this information to tailor their offerings, improve targeting, and enhance customer satisfaction. For instance, several sports teams are incorporating NFC tags into their jerseys, offering supporters an immersive experience when they engage with their jerseys. The information gathered through this technology gives clubs a greater insight into client preferences and behavior, enabling future marketing campaigns to be more precisely targeted.

  1. Expanded Market Reach:

Virtual showrooms, immersive experiences, and virtual tours powered by AR/VR solutions enable businesses to reach a global audience. For instance, the British Museum collaborated with Google to create a VR experience, allowing people worldwide to explore the museum’s exhibits virtually, regardless of their physical location.

Use Cases of Phygital Experiences with AR and VR


  • Retail and E-commerce:

AR Try-On: Retailers like Warby Parker and Lenskart enable customers to virtually try on eyeglasses or sunglasses using AR, allowing them to see how different frames would look on their faces.

Interactive Product Catalogs: Brands such as IKEA and Wayfair use AR to create phygital experiences through interactive product catalogs. Customers can visualize furniture and home decor items in their own space, assessing their suitability and making more informed purchase decisions.

  • Tourism and Hospitality

Virtual Tours: Travel companies and destinations offer virtual tours using VR, allowing potential tourists to explore hotels, attractions, and destinations before booking a trip. The Las Vegas Convention and Visitors Authority, for example, provides virtual tours of their hotels and casinos.

Enhanced Customer Experiences: Through personalized recommendations, mobile check-in, and keyless room entry, phygital technology is enhancing customer experiences in the hospitality industry. For instance, Accor’s “Accor Key” program gives guests access to their rooms using their smartphones, thus eliminating the need for physical keys, and making check-in more convenient.

  • Education and Training

Virtual Laboratories: Educational institutions leverage VR to create virtual laboratories, where students can conduct experiments and gain hands-on experience in a safe and controlled environment.

Skill Development: VR-based training programs use phygital strategies in industries like healthcare, aviation, and manufacturing, providing realistic simulations for trainees to practice complex tasks and procedures.

  • Marketing and Advertising

Immersive Brand Experiences: Companies like Coca-Cola and Red Bull create branded VR experiences, where users can engage in virtual activities like extreme sports or explore branded environments, enhancing brand awareness and engagement.

AR-based Product Engagement: Brands embed AR elements into product packaging or displays, enabling customers to scan and interact with the product uniquely and engagingly. LEGO, for instance, has an AR app that brings their physical sets to life with digital animations and experiences.

In Summary:

Phygital experiences will be an integral part of our future. We will see seamless transitions from digital to physical modes in virtually every aspect of daily life in the future. Immersive technologies like AR and VR form the foundation of phygital interactions by providing users with dynamic, interactive, and multisensory experiences that bridge the gap between the physical and digital worlds. Through AR and VR, businesses can create personalized, engaging, and transformative phygital encounters that captivate audiences, elevate customer experiences, and unlock new dimensions of innovation.

Give it a go and get in touch with Travancore Analytics, a leading AR/VR app development company, to discover more about this cutting-edge solution to elevate your business to the next level.

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