Balancing digital & physical channels in the new world

I wanted to share some thoughts and articles on THE way to deliver truly seamless customer experiences – Phygital and Phygitisation1

The way we engage with customers has been upgraded with better technology and a beautifully blended approach to bringing the digital world into physical branches and stores. Consumers have adapted to and are happily buying online and picking-up in-store (BOPIS) and buying online and returning in-store (BORIS).

The data is compelling when it comes to changing consumer behaviours and interactions with digital self-service tools – 91% would use an online knowledge base, if available and tailored to their needs.2

Retail banking is explored in-depth by McKinsey, identifying the benefits and process required to accelerate digital and upgrade the physical experience – to harness the best of both digital and physical worlds.

I have detailed a few key callouts and added references to the McKinsey article below.

  • With the decline in usage of physical branches we need to ask – can digital channels replace branches as the dominant sales channel? What is the new role of the physical branch?
  • Banks that had already established momentum by building top-flight digital consumer experiences extended their lead in 2021.
  • The focus must shift to streamlining the sales journey
    • Full suite of digital-marketing capabilities to drive traffic – ‘multichannel approach is 3.2 times more effective at boosting sales’
    • Funnel optimisation to improve conversion – ‘reduce cognitive load of application, fewer screens and simple language can boost digital sales by 13 percent.’
    • Data and advanced analytics to power personalisation – ‘leverage life event triggers to realise 3.5 times more success.’

The article continues by looking at the disparity between the actual use and willingness to use:

“75 percent are willing to open a new account, 30-35 percent express actual preference to do so digitally and only 15 percent are actually opened online.”

We must embrace this difference between demand (75 percent) and action (15 percent) for digital acquisition, recreate offline journeys online and meet customers where they demand we be.


Until next time,

Tony – Head of Strategy


Article references 

  1. I am trying to coin the term Phygitisation – digitisation of physical processes and touchpoints 😉
  2. Zendesk survey

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