How to Go Phygital for Growth: Myths vs Reality
Episode 191, Jun 13, 08:38 AM
How should founders think about using offline channels for growth? Is phygital a real option or just a mirage? Rajinder Balaraman and Vikram Vaidyanathan double-click on the myths around phygital, bust them and share learnings for founders thinking of going phygital.
👉MYTH #1 Phygital has a higher CAC - It depends basis category, users and ticket size - Dezerv who employs a phygital model has a lower CAC than its competitors, whereas OneCard, operating purely online has a CAC that is 4-5x lower than SBI cards.
👉MYTH #2 Going offline slows you and makes it harder to scale - When you employ the right tech, scalability at speed becomes possible. Mamaearth’s online presence has spiked from 15% to at least 50% in 3 years.
👉MYTH #3 Customer experience journey is too complex in phygital - The journey is actually complex, but is an opportunity for founders to create an edge, and potentially a long-term moat.
👉 MYTH #4 Phygital is not relevant for all sectors - While there are sectors in the extreme who don’t need a phygital model, a significantly larger number benefit from creating a phygital experience. SaaS is an excellent example, where prima facie it looks like a purely digital model, but the sector spends much more on offline branding and events.
If you are a founder who is evaluating going phygital, this episode of Matrix Moments would help you make an informed choice.
👉MYTH #1 Phygital has a higher CAC - It depends basis category, users and ticket size - Dezerv who employs a phygital model has a lower CAC than its competitors, whereas OneCard, operating purely online has a CAC that is 4-5x lower than SBI cards.
👉MYTH #2 Going offline slows you and makes it harder to scale - When you employ the right tech, scalability at speed becomes possible. Mamaearth’s online presence has spiked from 15% to at least 50% in 3 years.
👉MYTH #3 Customer experience journey is too complex in phygital - The journey is actually complex, but is an opportunity for founders to create an edge, and potentially a long-term moat.
👉 MYTH #4 Phygital is not relevant for all sectors - While there are sectors in the extreme who don’t need a phygital model, a significantly larger number benefit from creating a phygital experience. SaaS is an excellent example, where prima facie it looks like a purely digital model, but the sector spends much more on offline branding and events.
If you are a founder who is evaluating going phygital, this episode of Matrix Moments would help you make an informed choice.