How Retailers Can Beat Inflation Like a Pro With These 5 Tips
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Budget concerns and inflation shock are causing noticeable shifts in consumer behavior, a head-spinning turnabout since the pandemic days of 2020. We went from not having access to enough goods to now not having the right goods at the right price points. Heading into the holiday season, retailers will need to look sharp and be able to deliver value to the increasingly cost-conscious consumer — with frictionless product discovery and digital shopping experiences, relevant inventory, and personalization.
Those are a few of the insights gleaned from a recent eMarketer webcast on how retailers can better combat the effects of inflation, with pragmatic recommendations from experts including Amy Eschliman, managing director of retail solutions strategy and industry engagement at Google Cloud; Alexis Hoopes, vice president and head of e-commerce and direct-to-consumer (DTC) at Mattel Inc; and Elissa Quinby, head of retail insights at Quantum Metric. We’d like to share five key takeaways that retailers can adopt.
1. Be prepared for earlier holiday planning. Budget-conscious buyers are planning their purchases earlier than ever. According to our partner Quantum Metric’s latest Retail Benchmarks research, 40% of U.S. consumers and 30% in the UK have already started their holiday shopping1. At Mattel, Alexis noted, “We’ve learned to be nimble and early for our consumers, and to have products available for them when they’re ready to shop.” With higher prices, she added, “Consumers are preplanning and researching more, viewing product detail pages multiple times to check a higher-price item before adding it to their basket.”
Quantum Metric’s same research also shows that while average cart values grew between January to July 2022 — larger than they were at the same time last year1 — consumers were shopping less frequently. Because of higher prices, 37% of shoppers are now pre-planning and purchasing items all at once to help keep to their budget1. Amy observed. “That means retailers need to make it super easy for customers to find what they want to avoid shopping-cart abandonment.”
Retailers who make it easier for shoppers to find the right products, by providing Google-quality search and recommendations, can help reduce cart abandonment and increase conversions.
2. Get a handle on out-of-stock issues. While many of the supply-chain issues that surfaced during the pandemic have cleared up, inventory continues to be a challenge in retail. During the 2021 holiday season, Google/Ipsos research shows that consumers saw a 253% increase in “out of stock” messages versus pre-pandemic2. Elissa further pointed out that a great majority of both U.S. and UK consumers experience out-of-stock issues several times a month. It’s a fluid situation, however, with retailers facing bloated inventory as consumer demands quickly pivot from, for example, branded goods to generic or white-label items. “In the next six months or so, you really need to make sure you have the right inventory to meet consumer demands,” she advised.
The need for end-to-end visibility and the ability to act in real-time across the supply chain has never been more pressing. Google Cloud and our partners are tackling the top supply chain issues head on with solutions that enable end-to-end visibility, analytics and alert-driven event management as well as AI solutions and automation to streamline processes like procurement, fulfillment, and delivery.
3. Introduce value: communicate the quality of the product and the experience. While rising prices are paramount for many shoppers, it’s a common misconception that consumers are making purchase decisions based solely on price. Alexis remarked, “In e-commerce, we talk about price, product, service, and experience. Price is only one of the pillars for consumers. At Mattel, we are fully focused on product and experience. What makes this special? How do we connect directly in new ways to the consumer? Create ‘wow’ moments and deeper connections. When we think about value for our consumers, it’s the strength of the products that will drive the purchase.”
Elissa also noted that while consumers are doing a lot of comparison shopping, it’s really about value, whether a high-quality product or a high-quality experience. Quantum Metric’s Continuous Product Design solution, which is built with BigQuery, ingests data across multiple digital touchpoints, including from mobile and web applications, and connects customer signals to every stage of the product lifecycle to help deliver the products and experiences that customers actually want.
4. Ensure consistent experiences across channels. Today, consumers crave the cross-channel shopping experience. “The channel experience has gone from online to in-store to now everywhere,” Amy commented. “We call it ubiquitous digital shopping.” Elissa added that 75% of consumers do most of their shopping digitally. However, mobile drives 67% of digital traffic, but just 49% of sales.1 “Recent trends in traffic and conversion rates by device show that we can expect the most traffic for the big sale days on mobile,” she said. “People are looking for discovery and awareness, maybe even adding items to the cart as a placeholder or reminder. But they prefer to complete a sale on a desktop. It will be critical for retailers to offer a consistent experience, especially on major sale days like Black Friday and Cyber Monday.” Elissa also advised wrapping up any experiments with product and site design early, making sure to understand the customer experience holistically across the organization and prioritizing efforts to eliminate friction.
Consumers now expect to be able to shop wherever and whenever best fits their needs, whether in a store, on your website, through your app, or from within a social media ad, and have it be a consistently good experience no matter how they first entered or exited your commerce site. Google’s 2022 Retail Marketing Guide provides useful insights and tips on how to grow your online and in-app sales.
5. Personalize touchpoints to build loyalty. Connecting with your customer base and making sure they understand the value of your offering is essential. Alexis noted that the key is to keep your messages fresh as the holiday shopping season expands, providing new messages as they keep coming back to your store. “We need to engage them by helping them find what they are looking for at the right time,” she said. “Recognize that they are doing more planning and wish-list building early, then buying last-minute gifts at lower prices towards the end. Make sure those are front and center.”
Alexis also pointed out that today, consumers are providing more data points with the products they view or the items sitting in their carts. “What’s so great about e-commerce is that we can use all of this to create more personalized, direct messages targeted to those consumers,” she commented.
Amy recommended continuing to focus on conversion with product discovery and personalization, harnessing customer data to drive insights and action. “Any company’s biggest asset is their data. Using it in as many ways possible and activating it across the company is incredibly important,” she remarked. “Take advantage of your first-party data to activate everything from marketing campaigns to a more efficient supply chain. For every customer who comes to one of your digital properties, make sure your product discovery is as easy as possible. Pay attention to your recommendations, driving personalization to make that experience as unique and fruitful for the customer as possible.”
Achieving these objectives requires a modern cloud data warehouse and activation of a customer data platform. Retailers can explore how Google Cloud’s advanced data capabilities and our ecosystem of partners can power a customer data platform that supports more personalized marketing, shopping experience, and customer service.
While these are our key takeaways, we invite you to register to watch the on-demand webinar, “5 Ways Retailers Can Combat the Effects of Inflation,” for even more insights.
- Quantum Metric Retail Benchmarks, “Adjusting for Inflation.” The report is based on aggregated browsing behavior from January to July 2022, paired with a survey of 3,400 consumers in the U.S. and UK.
- Google/Ipsos, Holiday Shopping Study, Oct 2021 – Jan 2022, Online survey, US, n=7,253, Americans 18+ who conducted holiday shopping activities in past two days
A Year of Going Carbon-free! Google’s Road to Sustainability Looks Promising
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Last year, we announced our most ambitious sustainability goal yet: to operate everywhere on 24/7 carbon-free energy by 2030. We’ve set this goal to ensure that Google Cloud continues to be the cleanest cloud in the industry, and to show that full-scale decarbonization of electricity use is possible.
Since setting our target, we’ve made tremendous progress in how we track, buy, and use electricity; advocate for clean energy policies; and support the development of new technologies to help us reach this goal. And we’ve done it all while maintaining a commitment to transparency that we hope will make it easier for other organizations wishing to fully decarbonize their operations as well.
In the spirit of transparency, today we’re releasing the 2020 carbon-free energy percentages (CFE%) for all Google data centers, as well as overall progress on the road to our 2030 goal: In 2020, Google achieved 67% round-the-clock carbon free energy across all its data centers, up from 61% in 2019. In other words, of all the electricity consumed by Google data centers in 2020, two-thirds of it was matched with local, carbon-free sources on an hourly basis.
Though we saw a significant jump in global CFE% in 2020, we expect the numbers to vary from year to year. Ultimately, CFE% is dependent on the amount of new clean energy that comes online in a given year; we may even occasionally see short-term drops in the numbers. What’s most important is that we continue to maintain a long-term trajectory toward our 2030 goal. With meaningful progress in clean energy policy, technologies, and transactional models, we believe 24/7 carbon-free energy is achievable.
Tracking these numbers also allows us to give Google Cloud customers greater control in their own sustainability efforts. Earlier this year we announced Google Cloud Region Picker, a system that helps our customers assess factors like cost, speed, and CFE% as they choose where to run their applications.
To outline some of the events that have helped us get to 67% CFE%, we’ve developed an animation that shows every hour of electricity use in 2020, at all our Google data centers around the world.
Visualizing clean energy: every hour, every day, everywhere
Imagining what every hour in a year looks like is hard enough (there are 8,760 of them, in case you’re wondering). With 23 data centers and 25 cloud regions around the world, we’re aiming to source clean energy for over 200,000 operational hours each year.
https://youtube.com/watch?v=f9ecEokcFlk%3Fenablejsapi%3D1%26
The “A year in carbon-free energy” animation points out significant projects that came online in 2020 to bring our data centers closer to operating entirely on round-the-clock carbon-free energy. It also reflects an unparalleled level of transparency about our carbon-free energy data, showing hour-by-hour where we need to develop new clean energy projects, advocate for policy changes, and in some cases, look to new technologies that can help fill in the gaps left by variable renewable resources.
In the animation, you’ll notice sites with a lot of green at midday (e.g. in Chile or the U.S. Southeast) – a sign that solar is making a big contribution. Other data centers, such as our facilities in the U.S. Midwest, rely more heavily on wind power and are subject to seasonal fluctuations in wind speed.
Preventing the worst impacts of climate change will require decarbonizing the world’s electric grids, as fast as possible. Google is committed to doing as much as possible to clear a path for others and drive collective action to achieve this goal. We’re thrilled to be in good company as we move, together, toward a carbon-free future.
Strategic Consulting, Training & Implementation Guidelines with Public Sector PSO Helps Governments Stay Compliant
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Did you know that by 2025, enterprise IT spending on public cloud computing will overtake traditional IT spending? In fact, 51% of IT spend in application software, infrastructure software, business process services, and system infrastructure will transition to the public cloud, compared to 41% in 20221.. As enterprises continue to rapidly shift to the cloud, government agencies must prioritize and accelerate security and compliance implementation.
In May 2021, the White House issued an Executive Order requiring US Federal agencies to accelerate cloud adoption, embrace security best practices, develop plans to implement Zero Trust architectures, and map implementation frameworks to FedRAMP. The Administration’s focus on secure cloud adoption marks a critical shift to prioritizing cybersecurity at scale. Google Cloud’s Public Sector Professional Services Organization (PSO) has committed to helping customers meet security and compliance requirements in the cloud through specialized consulting engagements.
Accelerating Authority to Operate (ATO)
The Federal Risk and Authorization Management Program (FedRAMP) was established in 2011 as a government-wide program that promotes the adoption of secure cloud services across the federal government. FedRAMP provides a standardized approach to security and risk assessment for cloud technologies and federal agencies. US Federal agencies are required to utilize and implement FedRAMP cloud service offerings as part of the “Cloud First” federal cloud computing strategy.
While Google Cloud provides a FedRAMP-authorized cloud services platform and a robust catalog of FedRAMP-approved products and services (92 services and counting), customers are still tasked with achieving Agency ATO for the products and services they use, and Google Cloud provides many resources to assist customers with this journey. Google Cloud’s FedRAMP package can be accessed by completing the FedRAMP Package Access Request Form and submitting it to info@fedramp.gov. Additionally, customers can use Google’s NIST 800-53 ATO Accelerator as a starting point for documenting control implementation. Finally, Google Cloud’s Public Sector PSO offers the following strategic consulting engagements to help customers streamline the Agency ATO process.
- Cloud Discover: FedRAMP is a six-week interactive workshop to support customers that are just getting started with the ATO process on Google Cloud. Customers are educated on FedRAMP fundamentals, Google’s security and compliance posture, and how to approach ATO on Google Cloud. Through deep-dive interviews and design sessions, PSO helps customers craft an actionable ATO plan, assess FedRAMP readiness, and develop a conceptual ATO boundary. This engagement helps organizations establish a clear understanding and roadmap for FedRAMP ATO on Google Cloud.
- FedRAMP Security Review is a ten to twelve week engagement that aids customers in FedRAMP operational readiness. PSO consultants perform detailed FedRAMP architecture reviews to identify potential gaps in NIST 800-53 security control implementation and Google Cloud secure architecture best practices. Findings from the security reviews are shared with the customer along with configuration guidance and recommendations. This engagement helps organizations prepare for the third-party or independent security assessment that is required for FedRAMP ATO.
- Cloud Deploy: FedRAMP is a multi-month engagement designed to help customers document the details of their FedRAMP System Security Plan (SSP) and corresponding NIST 800-53 security controls, in preparation for Agency ATO on Google Cloud at FedRAMP Low, Moderate, or High. PSO collaborates with customers to develop a detailed technical infrastructure design document and security control matrix capturing evidence of the FedRAMP system architecture, security control implementation, data flows and system components. PSO can also partner with a third-party assessment organization (3PAO) or an independent assessor (IA) to support customer efforts for FedRAMP security assessment. This engagement helps customer system owners prepare for Agency ATO assessment and package submission.
Developing a Zero Trust Strategy
In addition to providing FedRAMP enablement, Public Sector PSO has partnered with the Google Cloud Chief Information Security Officer (CISO) team to assist organizations with developing a zero trust architecture and strategy.
Zero Trust Foundations is a seven-week engagement co-delivered by Google Cloud’s CISO and PSO teams. CISO and PSO educate customers on zero trust fundamentals, Google’s journey to zero trust through BeyondCorp, and defense in depth best practices. The CISO team walks customers through a Zero Trust Assessment (ZTA) to understand the organization’s current security posture and maturity. Insights from the ZTA enable the CISO team to work with the customer to identify an ideal first-mover workload for zero trust adoption. Following the CISO ZTA, PSO facilitates a deep-dive Zero Trust Workshop (ZTW), collaborating with key customer stakeholders to develop a NIST 800-207 aligned, cloud-agnostic zero trust architecture for the identified first-mover workload. The zero trust architecture is part of a comprehensive zero trust strategy deliverable that is based on focus areas called out in the Office of Management and Budget (OMB) Federal Zero Trust Strategy released January 2022.
Scaling Secure Cloud Adoption with PSO
Public Sector PSO enables customer success by sharing our technical expertise, providing cloud strategy, implementation guidance, training and enablement using our proven methodology. As enterprise IT, operations, and organizational models continue to evolve, our goal is to help government agencies accelerate their security and compliance journeys in the cloud. To learn more about the work we are doing with the federal government, visit cloud.google.com/solutions/federal-government.
TVG Network Turns to Google Cloud and Saves $0.5 Million a Year
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Google Cloud Results
- Maximizes revenue by allowing customers to place bets faster and more confidently
- Scales for major racing events with 80% less IT involvement and up to $500,000 annual savings
- Improves time to market for new product releases by more than 30x
- Helps enable richer mobile experiences to keep fans engaged
- Processes up to 6,000 bets per minute
The first Saturday of May is the biggest horse racing event in North America each year. Minutes before the race, millions of dollars in online bets will flow in through advanced deposit wagering (ADW) operators such as TVG Network. For TVG’s IT team, it’s a high-stakes game: If wagering systems can’t handle thousands of requests per second, revenue and customers will be lost.
To avoid downtime before a major race, TVG used to bombard its systems with ad-hoc load tests a month in advance. Before each big race event, a team of seven people spent eight hours a week deploying new infrastructure and testing various scenarios. But with complex legacy systems and manual processes, the team’s efforts could only go so far. If an unexpected system issue or undetected bottleneck was found during the run-up to the big race, all bets were off.
After a brush with downtime in 2016, TVG decided to move its ADW application to the cloud, taking the opportunity to rewrite the application to take advantage of modern, container-based architectures. After a short period of development on a different cloud services provider, TVG moved to Google Cloud Platform using Google Kubernetes Engine to automate container management and orchestration.
“We chose Google Cloud Platform because it was the most reliable, cost-effective, and automated cloud solution available,” says Tim Morrow, CTO at TVG Network. “We get better security, strong compliance, and the peace of mind that when the biggest race day rolls around, we won’t have any downtime.”
Placing the right bet
Moving to Google Cloud Platform gives TVG a variety of options in different regions and availability zones to satisfy regulatory requirements. Google Cloud Platform offers continuous availability and transparent maintenance, with no scheduled downtime or patching requirements.
“For our online wagering site, we prefer Google’s philosophy of continuous availability and live migration,” says Tim. “Having to plan for scheduled downtime of cloud instances just seems ridiculous in this day and age. And with Google Cloud Platform, we get much more consistent performance as we scale.”
To keep its IT team focused on value-added tasks, TVG uses Google Cloud managed services such as Cloud Bigtable, a highly scalable NoSQL database, as well as Cloud Storage for backups and Cloud Pub/Sub for real-time messaging between applications.
“We like the software-defined nature of Google Cloud Platform,” says Saeid Vafaeisefat, Vice President of IT, TVG Network. “The managed services are so easy to use. Google Cloud Platform even helps us mitigate and absorb distributed denial of service attacks with its global load balancing features, which we don’t pay extra for.”
TVG worked with SADA Systems, a Google Cloud Premier Partner, for consulting and deployment assistance. “SADA Systems helped us gain a deeper understanding of the advantages of Google Cloud Platform so we could make better decisions about how our application would perform and scale,” says Saeid. “They provided the facilitation, follow-up, and expert advice we needed to make our deployment a success.”
Scaling with 80% less work
With an active-active cloud architecture spanning multiple regions and the ability to conduct continuous, automated load tests, TVG no longer worries about downtime during major racing events—or any time, for that matter. Infrastructure and tools that used to be required to scale and provide resiliency are no longer needed, reducing CapEx. And with autoscaling replacing human intervention, accidental downtime is much less of a concern.
“With Google Cloud Platform, we can scale for major racing events with 80% less IT involvement and up to $500,000 annual CapEx savings,” says Tim. “Google Cloud Platform gives us faster deployment—we’re releasing new enhancements to our wagering site four times a week instead of every two months.”
More profitable user journeys
TVG’s success is being driven by ongoing modernization made possible in part by Google Cloud Platform, with TVG becoming the first U.S. operator to launch native iPhone and iPad apps. Lower latency means that stale data is never an issue, allowing customers to place bets faster and more confidently from anywhere they happen to be—which generates more revenue for TVG.
“Being on Google Cloud Platform has allowed us to develop our customer-facing channel faster while focusing on automated deployment and immutable infrastructure,” says Tim. “We have far greater confidence in our platform, and last year we broke records on our major race days while delivering an excellent customer experience.”
Revolutionizing Cloud Computing: Introducing G2 VMs with NVIDIA L4 GPUs
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Organizations across industries are looking to AI to turn troves of data into intelligence, powered by the latest advances in generative AI. Yet for many organizations, there is a barrier to adopting the latest models because they can be costly to train or serve. A new class of cloud GPUs is needed to lower the cost of entry for businesses that want to tap the power of AI.
Today, we’re introducing G2, the newest addition to the Compute Engine GPU family in Google Cloud. G2 is the industry’s first cloud VM powered by the newly announced NVIDIA L4 Tensor Core GPU, and is purpose-built for large inference AI workloads like generative AI. G2 delivers cutting-edge performance-per-dollar for AI inference workloads that run on GPUs in the cloud. By switching from NVIDIA A10G GPUs to G2 instances with L4 GPUs, organizations can lower their production infrastructure costs up to 40%. We also found that customers switching from NVIDIA T4 GPUs to L4 GPUs can achieve 2x-4x better performance. As a universal GPU offering, G2 instances also help accelerate other workloads, offering significant performance improvements on HPC, graphics, and video transcoding. Currently in private preview, G2 VMs are both powerful and flexible, and scale easily from one up to eight GPUs.
Currently organizations require end-to-end enterprise ready infrastructure that will future proof their AI and HPC initiatives for a new era. G2s will be ready to be deployed on Vertex AI, GKE, and GCE, giving customers the freedom to architect their own custom software stack to meet their performance requirements and budget. With optimized Vertex AI support for G2 VMs, AI users can tap the latest generative AI models and technologies. With an easy to use UI and automated workflows, customers can access, tune and serve modern models for video, text, images, and audio without the toil of manual optimizations. The combination of these services with the power of G2 will help customers harness the power of complex machine models for their business.
NVIDIA L4 GPUs with Ada Lovelace Architecture
G2 machine families enable machine learning customers to run their production infrastructure in the cloud for a variety of applications such as language models, image classification, object detection, automated speech recognition, and language translation. Built on the Ada Lovelace architecture with fourth-generation Tensor Cores, the NVIDIA L4 GPU provides up to 30 TFLOPS of performance for FP32, and 242 TFLOPs for FP16. Newly added FP8 support, on top of existing INT8, BFLOAT16 and TF32 capabilities, makes the L4 ideal for ML inference.
With the latest third-generation RT Cores and DLSS 3.0 technology, G2 instances are also great for graphics-intensive workloads such as rendering and remote workstations when paired with NVIDIA RTX Virtual Workstation. NVIDIA L4 provides 3x video encoding and decoding performance, and adds new AV1 hardware-encoding capabilities. For example, G2 can enable gaming customers running game engines such as Unreal and Unity with modern graphics cards to run real-time applications. Likewise, media and entertainment customers that need GPU-enabled virtual workstations can use the L4 to create photo-realistic, high-resolution 3D content for movies, games, and AR/VR experiences using applications such as Autodesk Maya or 3D Studio Max.
What customers are saying
A handful of early customers have been testing G2 and have seen great results in real-world applications. Here are what some of them have to say about the benefits that G2 with NVIDIA L4 GPUs bring:
AppLovin
AppLovin enables developers and marketers to grow with market leading technologies. Businesses rely on AppLovin to solve their mission-critical functions with a powerful, full stack solution including user acquisition, retention, monetization and measurement.
“AppLovin serves billions of AI powered recommendations per day, so scalability and value are essential to our business,” said Omer Hasan, Vice President, Operations at AppLovin. “With Google Cloud’s G2 we’re seeing that NVIDIA L4 GPUs offer a significant increase in the scalability of our business, giving us the power to grow faster than ever before.”
WOMBO
WOMBO aims to unleash everyone’s creativity through the magic of AI, transforming the way content is created, consumed, and distributed.
“WOMBO relies upon the latest AI technology for people to create immersive digital artwork from users’ prompts, letting them create high-quality, realistic art in any style with just an idea,” said Ben-Zion Benkhin, Co-Founder and CEO of WOMBO. “Google Cloud’s G2 instances powered by NVIDIA’s L4 GPUs will enable us to offer a better, more efficient image-generation experience for users seeking to create and share unique artwork.”
Descript
Descript’s AI-powered features and intuitive interface fuel YouTube and TikTok channels, top podcasts, and businesses using video for marketing, sales, and internal training and collaboration. Descript aims to make video a staple of every communicator’s toolkit, alongside docs and slides.
“G2 with L4’s AI Video capabilities allow us to deploy new features augmented by natural-language processing and generative AI to create studio-quality media with excellent performance and energy efficiency” said Kundan Kumar, Head of Artificial Intelligence at Descript.
Workspot
Workspot believes that the software-as-a-service (SaaS) model is the most secure, accessible and cost-effective way to deliver an enterprise desktop and should be central to accelerating the digital transformation of the modern enterprise.
“The Workspot team looks forward to continuing to evolve our partnership with Google Cloud and NVIDIA. Our customers have been seeing incredible performance leveraging NVIDIA’s T4 GPUs. The new G2 instances with L4 GPUS through Workspot’s remote Cloud PC workstations provide 2x and higher frame rates at 1280×711 and higher resolutions” said Jimmy Chang, Chief Product Officer at Workspot.
Pricing and availability
G2 instances are currently in private preview in the following regions: us-central1, asia-southeast1 and europe-west4. Submit your request here to join the private preview, or to receive a notification as when the public preview begins. Support will be coming to Google Kubernetes Engine (GKE), Vertex AI, and other Google Cloud services as well. We’ll share G2 public availability and pricing information later in the year.
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Pega Systems Migrates SAP Servers to Google Cloud in Just 9 Weeks!
Pega Systems’ financial data on SAP environs were on a hosting platform that lacked agility. By moving nearly 30 SAP servers to Google Cloud in just 9 weeks, Pega Systems was able to unlock data and integrate BigQuery into SAP HANA to deliver personalization for clients and embark on an exciting journey with Google Cloud! Watch now.
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