Phygital insights: Technology anticipating expectations
We have never seen such a strong interspersal of experiences from the real world and the digital world as today. Technologies that enable this have been developing for years, but now is the time when they will be used on a large scale across the board — including in banking and financial services. We are not talking only about the three-screen omnichannel here, but a trend much broader than the use of a digital screen — we are talking phygital insights.
Phygital is a digital description of reality. The concept of phygital insights is to analyze stimuli from the physical world and use them in the digital one. Thanks to intelligent data processing and artificial intelligence recognizing the probability of various events, it is possible to draw conclusions from information from many dispersed systems and sensors and to use them in the online world.
The ubiquitous merging of worlds
Analyzing data and drawing conclusions on an ongoing basis is not enough. Thanks to the possibility of „learning” behaviors combined with communication with clients about their experiences, we have at our disposal intelligent platforms and applications that perfectly understand the small and specific needs of the user. It is only in this context that data from the physical world acquires incredible value and can be translated into real benefits for companies.
This is leading to the emergence of new subscription products, reflecting the real behavior of the user. An example could be motor insurance which makes the policy dependent on the number of kilometers traveled and the amount of time spent behind the wheel. Banks — like the Polish Alior Bank — use artificial intelligence algorithms in customer service processes. The Middle Eastern bank, Emirates NBD, offers customers a Fitness Account where the benefits of saving depend on the level of their physical activity.
Let’s combine the notification for passengers waiting for a delayed flight with information that the best coffee at a discounted price is available in a café 25 meters away — this is how you need to think about phygital marketing.
An excellent illustrative example of the integration of data and services in the phygital approach is the notification, upon starting the car engine, informing the driver about the time needed to complete the route. Intelligent software on the driver’s smartphone knows that he got into the car and knows his driving habits — This knowledge is integrated with current data on traffic jams and driving speed on the route from other drivers.
A perfect example of the phygital approach that we are already getting used to is behavioral identification. Advanced biometrics — such as voice or face recognition — is used for authorization in applications, including banking ones. Identification methods are going further, towards even safer solutions. Multilevel authentication is becoming the future, combining biometrics with other methods of user verification.
Skilful analysis and conclusions drawn from shared data, prediction and anticipating user behavior — these are now the keys to customer satisfaction. Without these, companies will have no chance of thriving in a competitive market.
The future of phygital insights
The new value that we are currently dealing with comes from the combination of three basic dimensions: the ability to understand, analyze and draw conclusions from customer data that was previously not available on the internet; the ubiquitous digitalization that allows us to reach the client in different contexts and moments; and the ability to draw conclusions about the customer from the very different events that take place in his life. The skilful combination of these dimensions, not possible previously, opens up completely new opportunities to offer customers real value, which will then translate into business development.
Originally published at www.efigence.com.
