Some good news to begin with: both Millennials (i.e. those born between 1981 and 1996, who were therefore teenagers in the early 2000s) and Generation Z (or “post Millennials”, born between the late 1990s and 2010) still prefer physical shops to virtual ones. For the former that means around 4 out of 5, and for the latter 3 out of 5. The figures were analysed by Nicolò Andreula, an economist, consultant, trainer, scientific director of the master’s degree in Digital Entrepreneurship at H-Farm, and author of “Lost in Phygital”, on the physical and digital future of shops.

We are in the middle of an evolution that is seeing the emergence of a new dimension of phygital marketing, in which there is no longer a clear distinction between online and offline. The most successful players in this new hybrid age will be those who manage to engage consumers in a different and innovative way, using strategies that put factors like immediacy, immersion and interaction first.

The aim is to acquire potential customers who will only go to the actual store out of necessity but above all out of curiosity and in search of new experiences. For this to happen, it is not enough to regulate prices: what is needed are retail design strategies that can really influence consumers, even before they know about the products.

So this is about doing more to stimulate the emotional rather than the functional aspect, turning the provision of information into true experiences. A good example is the so-called “Ikea effect” whereby forcing customers to put their own furniture together, immerses them in an experience, one that they then want to repeat. This principle is based on the fact that if you buy a product and construct it yourself, you are more involved emotionally. That gives customers the more active role of prosumers, a term that is defined as referring to “individuals who consume and produce value and are involved in the design of products for their own needs or those of others.”

In short, then, a story well told makes it possible for customers to enjoy an experience and discover what really matters. And you do not necessarily need huge economic resources to do this: you can make amateur videos or involve potential listeners, going beyond the product, with virtual surveys that make more people feel that they are an active part of the group.

Nicolò Andreula offers five considerations on how to generate “digital humanism”:

-         stories are worth more than discounts

-         customers should be involved in the co-creation of a product

-         all the senses matter and all need to be stimulated

-         more meaningful use should be made of time and interaction

-         it is important to go beyond the product: offer experiences, create communities.