In an increasingly connected world, the boundaries between physical and digital experiences are blurring. This is where the term phygital comes in—a buzzword that describes the fusion of physical and digital touchpoints in retail and service environments. Also known as hybrid commerce or hybrid customer experience, this concept captures the shift toward seamless, channel-agnostic journeys.

Whether you're offering a customer the ability to buy online and pick up in-store (BOPIS) or enabling them to scan a QR code in-store for a personalized digital coupon, you're delivering a hybrid experience. This seamless blend of digital convenience and physical interaction is redefining modern commerce and requires new levels of coordination—especially in how businesses identify and serve customers consistently across channels.

## Key Takeaways

- **Hybrid commerce is the evolution of omnichannel.** Also known as “phygital” in some markets, it merges digital and physical interactions into a single, uninterrupted customer journey—where identity is the connective tissue.
- **Shoppers who engage across channels have 30% higher lifetime value**1**.** Seamless hybrid experiences like BOPIS and livestream shopping aren't just trends—they drive measurable business outcomes.
- **Strong hybrid strategies lead to loyalty gains.** Brands with strong omnichannel engagement see loyalty increase from 33% to 89%2, proving that consistency across touchpoints builds trust and retention.
- **Identity unlocks personalization at scale.** By unifying customer profiles across channels, businesses can deliver context-aware experiences—like in-store personalization informed by app activity or product recommendations that follow the user across touchpoints.
- **IAM turns hybrid complexity into competitive advantage.** From curbside authentication to secure livestream checkouts, identity and access management enables hybrid journeys that are secure, consistent, and conversion-optimized.

## What Is Hybrid Commerce?

Hybrid commerce refers to the integration of online and offline channels into a single, unified customer journey. It means a customer can discover a product online, try it in-store, purchase it via mobile, and return it at a kiosk—all without friction. It goes beyond omnichannel by focusing not just on the presence of multiple channels, but on the continuity between them.

## What Is a Hybrid Customer Experience?

Hybrid customer experience is the broader strategy of delivering consistent, personalized interactions regardless of whether the customer engages physically, digitally, or through both simultaneously. It can involve everything from e-commerce and mobile apps to in-person interactions guided by customer data. The connective tissue for these experiences is identity—knowing who the customer is, what they need, and where they are in their journey.

## Real-World Trends Driving the Rise of Hybrid Shopping

The rise of hybrid shopping isn’t theoretical—it’s driven by real, in-demand trends that blend physical and digital convenience. Below are four major trends that show how hybrid commerce is playing out in the real world—and what it means for businesses.

### BOPIS (Buy Online, Pick Up In Store)

Buy Online, Pick Up In Store (BOPIS) has gone from a pandemic-era workaround to a long-term retail strategy. It allows customers to browse and purchase products online, then retrieve them at a nearby physical location—often within hours, and this way of shopping is here to stay – more than one third of consumers surveyed in 2024 stated they had used BOPIS in the last six months3.

This model offers two key benefits: speed and control. Shoppers can avoid shipping delays and ensure product availability before committing. For retailers, BOPIS reduces fulfillment costs and drives in-store foot traffic, creating upsell opportunities during pickup.

But executing BOPIS well requires synchronized inventory systems, location-based services, and authenticated customer identity at the point of pickup—all of which depend on tight integration between digital and physical systems.

### Curbside Pickup

Curbside pickup takes BOPIS a step further by eliminating the need for customers to enter the store at all. Through mobile apps or web portals, shoppers place orders, receive notifications, and pick up goods—all without leaving their vehicles. In 2024, over 30% of customers shopped this way4.

This experience is defined by low friction and high expectations. Customers want precision timing, real-time updates, and verification without delays or errors. That means businesses must ensure that staff, mobile platforms, and customer data are all in sync.

Identity is critical here: verifying the right person is picking up the right order—often without formal ID—requires secure authentication methods tied to mobile devices or app credentials.

### Virtual Try-On

Virtual try-on technology blends AI and augmented reality to let users preview how products will look before purchasing—without ever stepping into a store. From cosmetics to glasses to sofas, customers can “try” products via their phone cameras or browser windows.

This not only reduces return rates, it builds buyer confidence and replicates the tactile element of in-store shopping. But to work well, virtual try-on needs access to user data, camera permissions, and personalization based on purchase history or preferences. Virtual try-on can help retailers stand out and reduce returns, with the potential to increase sales by up to 30% while cutting returns by 20%5, making it an attractive technology investment.

When integrated with identity systems, retailers can tailor the experience—suggesting shades that match past orders or furniture that fits with a shopper’s saved room dimensions. Without that unified profile, the experience is less personal—and less effective.

### Livestream Shopping

Livestream shopping brings the retail experience into real time, often through influencers or store associates who demonstrate products live on social platforms. Viewers can comment, ask questions, and make purchases directly from the stream.

Popular in APAC and gaining momentum globally, livestream shopping taps into urgency and interactivity. It creates a sense of event-based commerce that combines entertainment with instant gratification. Livestreams can be incredibly lucrative – 73% of consumers are more likely to make a purchase after watching a live shopping event6.

To support this, businesses need identity-aware commerce platforms that can handle large bursts of traffic, track viewers across devices, and apply personalized recommendations mid-stream. Otherwise, shoppers may drop off before converting, and the momentum is lost.

Each of these hybrid shopping models demands seamless transitions between digital and physical channels. That means more than just operational alignment—it requires a shared understanding of who the customer is at every touchpoint. Without identity as the foundation, hybrid shopping breaks down. With it, you unlock the continuity, personalization, and trust modern consumers expect.

### Parcel Lockers

Parcel lockers offer a convenient self-service option for customers to pick up online orders at secure, automated kiosks located in grocery stores, apartment buildings, and retail centers. This hybrid model removes the need for home delivery or waiting in line at a brick and mortar location—shoppers can retrieve packages on their schedule with just a code.

For retailers, integrating locker systems extends fulfillment capabilities and supports flexible logistics. It also opens doors for impulse foot traffic if lockers are located in-store. From a CX perspective, locker access must be authenticated securely—usually through a mobile notification or barcode—underscoring the importance of unified identity.

### Order Ahead for Food & Takeout

Ordering takeout or groceries online and picking them up in-store or curbside has become a permanent fixture in food service. Whether it’s a coffee chain app or a grocery store pickup portal, these experiences combine digital ordering with physical fulfillment in a way that prioritizes convenience and speed.

Execution hinges on accurate order processing, pickup timing, and customer verification. Restaurants and retailers must sync POS systems, online menus, and pickup stations while ensuring the customer is authenticated at the point of handoff—usually via email confirmation, app check-in, or SMS alert.

### Ship-to-Store (Not Same-Day)

Ship-to-store is a longer-lead version of BOPIS, where items ordered online are shipped from a warehouse to a retail location for pickup, often over several days. Unlike traditional BOPIS where stores fulfill from in-stock inventory, ship-to-store enables broader product access without requiring every location to carry full assortments.

For consumers, this model offers expanded selection with the convenience of in-person pickup. For retailers, it reduces store-level inventory burdens while still driving foot traffic. However, success relies on tight coordination across warehouse, e-commerce, and in-store systems—as well as proactive customer communication and identity verification upon pickup.

## Benefits of Hybrid Commerce

### Increased Lifetime Value

According to industry data, customers who shop across both online and offline channels have a 30% higher lifetime value than those who use only one.

### Greater Customer Loyalty

When brands offer strong omnichannel engagement, customer loyalty can increase from 33% to 89%6. Hybrid commerce plays a key role in enabling those smooth transitions across channels.

### More Personalization Opportunities

Hybrid environments allow businesses to collect richer customer data. With the right identity solution, this data powers personalized experiences that feel intuitive and responsive.

## Challenges of Hybrid Commerce

### Fragmented View of the Customer

Many organizations struggle with fragmented systems that hold online and offline customer data in separate places. Without integration, the customer experience suffers. In the worst case scenarios, hybrid experiences become impossible.

### Security and Privacy

With more touchpoints comes more risk. Organizations must ensure customer data is protected across every interaction, whether it’s a mobile checkout or an in-store loyalty scan.

## Strategies for Delivering a Seamless Hybrid Customer Experience

### Unify Identity Across Touchpoints

Implement a centralized Identity and Access Management (IAM) system that allows you to track and authenticate users across both digital and physical channels.

### Invest in API-First Architecture

Your infrastructure should be flexible and integrated, enabling real-time data sharing between systems like CRM, POS, mobile apps, and customer portals.

### Enable Consent and Preference Management

Hybrid experiences only work when customers feel in control. Let them set privacy preferences and choose how and where their data is used.

## Enabling Seamless Hybrid Shopping Experiences Starts With Identity

To successfully deliver a hybrid (or phygital) experience, organizations must first ensure continuity across every customer touchpoint—digital, physical, and everything in between. That means recognizing the same user whether they’re browsing a mobile app, making an in-store purchase, or interacting with a kiosk.

This starts with identity. Knowing who your customer is across channels unlocks consistent authentication, unified experiences, and seamless personalization. Without unified and personalized customer profiles, experiences are fragmented, and the customer journey stalls.

An identity-first foundation allows retailers to:

- Ensure customers can log in once and access all channels without repeated verification
- Track engagement across devices and locations without friction
- Build persistent user profiles that inform offers, support, and services across time

As hybrid commerce grows, customers expect their preferences, status, and activity to follow them—regardless of where they interact. That’s only possible when identity acts as the connective tissue.

## Turning Hybrid into a Business Advantage

Hybrid commerce is more than a trend—it’s the future of customer engagement. As the line between digital and physical continues to fade, retailers and other consumer-facing businesses must evolve. The first step? Building a unified identity foundation that makes seamless, secure, and satisfying hybrid experiences possible.

A CIAM solution optimized for retail can help with:

- **Cross-Channel Recognition:** IAM connects online and offline touchpoints through a single customer identity, allowing you to recognize returning users no matter where they engage.
- **Personalization:** A unified profile enables real-time personalization based on past purchases, preferences, and behaviors—and that matters more than ever. 52% of omnichannel consumers now expect personalized experiences every time they interact with a brand7. Without connected identity, those expectations go unmet.
- **Security and Trust:** [Online shopping is cited by 69% of consumers as the activity that makes them feel most vulnerable to identity theft](https://hub.pingidentity.com/surveys/4076-2024-consumer-survey-improved-digital-experiences). With adaptive authentication, businesses can secure sensitive interactions and foster customer trust without compromising usability.

Explore how Ping Identity can help you deliver phygital (or hybrid) experiences that win customer loyalty and drive growth.

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1. Omnichannel marketing statistics, Loyal Guru

2. Omnichannel marketing statistics, Loyal Guru

3. [Free and fast shipping remain consumers' top delivery priorities in 2024](https://www.digitalcommerce360.com/2024/09/13/free-and-fast-shipping-consumers-delivery-2024/), Digital Commerce 360

4. [Free and fast shipping remain consumers' top delivery priorities in 2024](https://www.digitalcommerce360.com/2024/09/13/free-and-fast-shipping-consumers-delivery-2024/), Digital Commerce 360

5. [E-commerce Virtual Try-On: How It Reduces Returns and Boosts Sales](https://onix-systems.com/blog/virtual-try-on-for-ecommerce-use-cases), Onix Systems

6. [Live Shopping Statistics: The $600 Billion Revolution Changing E-Commerce](https://firework.com/blog/top-livestream-shopping-statistics-that-you-cant-ignore-for-your-e-commerce-business), Firework

7. Omnichannel marketing statistics, Loyal Guru

8. [June 2023 Global Consumer Insights Pulse Survey](https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html), PWC