Customer engagement strategy by design : developing a phygital experience to foster brand differentiation and loyalty

Abstract

This thesis researched how engaging digital customer experience can serve as a source of brand differentiation, particularly for small brands operating in competitive, meaning-rich markets such as fragrance. It investigated how emotionally immersive experiences can enhance customer connection, strengthen loyalty, and elevate perceived brand value, beyond product functionality. Considerable attention was given to the role of digital technologies in expanding, scaling, and enriching the user experience in cost-effective ways. Ritualistic experiences and gamification were identified as key levers to foster engagement, evoke emotional resonance, build habits, and cultivate brand loyalty by creating symbolic interactions and playful, rewarding journeys. The study aimed initially to design a strategic digital experience that positioned the brand as a differentiated and desirable choice in the wellness-oriented fragrance sector. Insights from the design process redirected the project toward a more innovative approach: the development of a complete, integrated physical-digital (phygital) experience, rather than a standalone digital solution.

To address the objective of designing a feasible, engaging, and differentiated customer experience, the following research questions were explored: (1) What are the most innovative and effective customer engagement strategies and tools used in perfumery and from experience-oriented sectors? (2) What is the best digital engagement tool for the persona and commissioner to build loyalty? (3) How can gamification be used to foster customer engagement to attract and retain customers for the commissioner? The research adopted a qualitative, design-driven approach. The Design Thinking methodology guided the exploration, ideation, and development of the solution. A combination of research methods and tools was employed to examine market trends, benchmark digital customer experience practices, and gain insights into the target audience. This process culminated in the designing and prototyping of a beta version of a phygital experience and a digital platform. The final outcome was an innovative physical-digital experience that strategically positioned the brand with a degree of differentiation rarely achieved by small companies, maintaining a cost-effective approach suited for real-world implementation by emerging brands.