Is it September yet? Hardly! School is barely out for the summer. But according to Google and Quantum Metric research, the back-to-school and off-to-college shopping season – which in the U.S. is second only to the holidays in terms of purchasing volume1 – has already begun. For retailers, that means planning for this peak season has kicked off as well.

We’d like to share four key trends that emerged from Google research and Quantum Metric’s Back-to-School Retail Benchmarks study of U.S. retail data, explore the reasons behind them, and outline the key takeaways.

1. Out-of-stock and inflation concerns are changing the way consumers shop. Back-to-school shoppers are starting earlier every year, with 41% beginning even before school is out – even more so when buying for college1. Why? The behavior is driven in large part by consumers’ concerns that they won’t be able to get what they need if they wait too long. 29% of shoppers start looking a full month before they need something1.

Back-to-school purchasing volume is quite high, with the majority spending up to $500 and 21% spending more than $1,0001. In fact, looking at year-over-year data, we see that average cart values have not only doubled since November 2021, but increased since the holidays1. And keep in mind that back-to-school spending is a key indicator leading into the holiday season.

That said, as people are reacting to inflation, they are comparing prices, hunting for bargains, and generally taking more time to plan. This is borne out by the fact that 76% of online shoppers are adding items to their carts and waiting to see if they go on sale before making the purchase1. And, to help stay on budget and reduce shipping costs, 74% plan to make multiple purchases in one checkout1. That carries over to in-store shopping, when consumers are buying more in one visit to reduce trips and save on gas.

2. The omnichannel theme continues. Consumers continue to use multiple channels in their shopping experience. As the pandemic has abated, some 82% expect that their back-to-school buying will be in-store, and 60% plan to purchase online. But in any case, 45% of consumers report that they will use both channels; more than 50% research online first before ever setting foot in a store2. Some use as many as five channels, including video and social media, and these 54% of consumers spend 1.5 times more compared to those who use only two channels4.

And mobile is a big part of the journey. Shoppers are using their phones to make purchases, especially for deadline-driven, last-minute needs, and often check prices on other retailers’ websites while shopping in-store. Anecdotally, mobile is a big part of how we ourselves shop with our children, who like to swipe on the phone through different options for colors and styles. We use our desktops when shopping on our own, especially for items that require research and represent a larger investment – and our study shows that’s quite common.

3. Consumers are making frequent use of wish lists. One trend we have observed is a higher abandonment rate, especially for apparel and general home and school supplies, compared to bigger-ticket items that require more research. But that can be attributed in part to the increasing use of wish lists. Online shoppers are picking a few things that look appealing or items on sale, saving them in wish lists, and then choosing just a few to purchase. Our research shows that 39% of consumers build one or two wish lists per month, while 28% said they build one or two each week, often using their lists to help with budgeting1.

4. Frustration rates have dropped significantly. Abandonment rates aside, shopper annoyance rates are down by 41%, year over year1. This is despite out-of-stock concerns and higher prices. But one key finding showed that both cart abandonment and “rage clicks” are more frequent on desktops, possibly because people investing time on search also have more time to complain to customer service.

And frustration does still exist. Some $300 billion is lost each year in the U.S. from bad search experiences5. Data collected internationally shows that 80% of consumers view a brand differently after experiencing search difficulties, and 97% favor websites where they can quickly find what they are looking for5.

Lessons to Learn

What are the key takeaways for retailers? In general, consider the sources of customer pain points and find ways to erase friction. Improve search and personalization. And focus on improving the customer experience and building loyalty. Specifically:

80% of shoppers want personalization6. Think about how you can drive personalized promotions or experiences that will drive higher engagement with your brand.

46% of consumers want more time to research1. Drive toward providing more robust research and product information points, like comparison charts, images, and specific product details.

43% of consumers want a discount1, but given current economic trends, retailers may not be offering discounts. In order to appease budget-conscious shoppers, retailers can consider other retention strategies such as driving loyalty using points, rewards, or faster-shipping perks.

Be sure to keep returns as simple as possible so consumers feel confident when making a purchase, and reduce possible friction points if a consumer decides to make a return. 43% of shoppers return at least a quarter of the products they buy and do not want to pay for shipping or jump through hoops1.

How We Can Help

Google-sponsored research shows that price, deals, and promotions are important to 68% of back-to-school shoppers.7 In addition, shoppers want certainty that they will get what they want. Google Cloud can make it easier for retailers to enable customers to find the right products with discovery solutions. These solutions provide Google-quality search and recommendations on a retailer’s own digital properties, helping to increase conversions and reduce search abandonment. In addition, Quantum Metric solutions, available on the Google Cloud Marketplace, are built with BigQuery, which helps retailers consolidate and unlock the power of their raw data to identify areas of friction and deliver improved digital shopping experiences.

We invite you to watch the Total Retail webinar “4 ways retailers can get ready for back-to-school, off-to college” on demand and to view the full Back-to-School Retail Benchmarks report from Quantum Metric.

Sources:
1. Back-to-School Retail Benchmarks report from Quantum Metric
2. Google/Ipsos,Moments 2021, Jun 2021, Online survey, US, n=335 Back to School shoppers
3. Google/Ipsos, Moments 2021, Jun 2021, Online survey, US, n=2,006 American general population 18+
4. 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
5. Google Cloud Blog, Nov 2021, “Research: Search abandonment has a lasting impact on brand loyalty”
6. McKinsey & Company, “Personalizing the customer experience: Driving differentiation in retail”
7. Think with Google, July 2021, “What to expect from shoppers this back-to-school season”

Google Cloud Data Heroes is a series where we share stories of the everyday heroes who use our data analytics tools to do amazing things. Like any good superhero tale, we explore our Google Cloud Data Heroes’ origin stories, how they moved from data chaos to a data-driven environment, what projects and challenges they are overcoming now, and how they give back to the community.

For our first issue, we couldn’t be more excited to introduce Google Cloud Data Heroine Lynn Langit. Lynn is a seasoned business woman in Minnesota beginning her eleventh year as the Founder of her own consulting business, Lynn Langit Consulting LLC. Lynn wears many data professional hats including Cloud Architect, Developer, and Educator. If that wasn’t already a handful, she also loves riding her bike at any given season of the year (pictured on the right), which you might imagine gets a bit challenging when you have to invest in bike studded snow tires!

Tell us how you got to be a data practitioner. What was that experience like and how did this journey bring you to GCP?

I worked on the business side of tech for many years. While I enjoyed my work, I found I was intrigued by the nuanced questions practitioners could ask – and the sophisticated decisions they could make – once they unlocked value from their data. This initial intrigue developed into a strong curiosity and I ultimately made the switch from business worker to data practitioner over 15 years ago. This was a huge change in career considering I got my bachelor’s degree in Linguistics and German. And so I started small. I taught myself most everything both at the beginning and even now through online resources, courses, and materials. I began with database and data warehousing, specifically building and tuning many enterprise databases. It wasn’t until Hadoop/NoSQL became available that I pivoted to Big Data…

Back then, I supplemented my self-paced learning with Microsoft technologies, even earning all Microsoft certifications in just one year. When I noticed the industry shifting from on premise to cloud, I shifted my learning from programming to cloud, too. I have been working in the public cloud for over ten years already!

“I started with AWS, but recently I have been doing most everything in GCP. I particularly love implementing data pipelining, data ops, and machine learning.”

How did you supplement your self teachings with Google Cloud data upskilling opportunities like product deep dives and documentation, courses, skills, and certificates?

One of the first Google Cloud data analytics products I fell in love with was BigQuery. BigQuery was my gateway product into a much larger open, intelligent, and unified data platform full of products that combined data analytics, databases, AI/ML, and business intelligence.

I’ve achieved Skills Badges in BigQuery, Data Analysis, and more. I’ve also achieved Google’s Professional Data Engineer Certification, and have been a Google Developer Expert since 2012. 

Most recently, I was named one of few Data Analysis Innovator Champions within the Google Cloud Innovators Program, which I’m particularly excited about because I’ve heard it’s a coveted spot for data practitioners and necessitates a Googler nomination to move from the Innovator membership to Champion title!

You’re undoubtedly a data analytics thought leader in the community. When did you know you moved from data student to data master and what data project are you most excited about? 

I knew I had graduated, if you will, to the data architect realm once I was able to confidently do data work that matters, even if that work was outside of my usual domains: adTech and finTech.. 

For example, my work over the past few years has been around human health outcomes, including combatting the COVID-19 pandemic. I do this by supporting scientists and bioinformatic researchers with genomic-scale data pipelines. Did I know anything about genomics before I started? Not at all! I self-studied bioinformatics and recorded my learnings on GitHub.  Along the way  I  adopted my learnings into an open source GCP course on GitHub aimed at researchers who are new to working with GCP. What’s cool about the course is that I begin from the true basics of how to set up a GCP account. Then I gradually work up to mapping out genomic-scale data workflows, pipelines, analyses, batch jobs, and more using BigQuery and a host of other Google Cloud data products. 

Now, I’ve received feedback that this repository has made a positive impact on researchers’ ability to process and synthesize enormous amounts of data quickly. Plus, it achieves the greater goal of broadening accessibility to a public cloud like GCP. 

In what ways do you think you uniquely bring value back to the data community? Why is it important to you to give back to the data community? 

I stay busy always sharing my learnings back to the community. I record Cloud and Big data technical screencasts (demos) on Youtube, I’ve authored 25 data and cloud courses on LinkedIn Learning, and I occasionally write Medium articles on cloud technology and random thoughts I have about everyday life. I’m also the cofounder of Teaching Kids Programming, with a mission to help equip middle and high school teachers with a great programming curriculum on Java.

Begin your own hero’s journey

Ready to embark on your Google Cloud data adventure? Begin your own hero’s journey with GCP’s recommended learning path where you can achieve badges and certifications along the way. Join the Cloud Innovators program today to stay up to date on more data practitioner tips, tricks, and events.

Connect with Google’s data community at our upcoming virtual event “Latest Google Cloud data analytics innovations”. Register and save your spot now to get your data questions answered live by GCP’s top data leaders and watch demos from our latest products and features including BigQuery, Dataproc, Dataplex, Dataflow, and more. Lynn will take the main stage as an emcee for this event – you won’t want to miss!

Finally, if you think you have a good Data Hero story worth sharing, please let us know! We’d love to feature you in our series as well.

The ecommerce playing field has been hard to navigate for most retailers, and Cart.com is on a mission to change that. Traditionally, retailers needing to run their online store, order fulfillment, customer service, marketing, and other essential activities have had to cobble together systems to get the capabilities they need – much less having access to analytics across these functions. The result is costly, siloed ecommerce operations that are difficult to manage and scale.

It’s clearly not a formula for success, yet that’s the reality facing most retailers. Cart.com, in contrast, has set out to democratize ecommerce by giving brands of all sizes the full capabilities they need to take on the world’s largest online retailers. Our end-to-end environment empowers retailers to keep more of their revenue, set up proven strategies for managing all aspects of their business, and act on valuable insights from customer data every step of the way.

Together with our talented team, we’re building a unified ecommerce platform that already provides value to many leading or up and coming brands including Whataburger, GUESS, Dr. Scholl’s, Rowing Blazers, and Howler Bros. 

We’re excited about the opportunity ahead as we reimagine traditional approaches to online sales, fulfillment, marketing, accessing growth capital, providing a unified view of all ecommerce and marketing analytics, and other activities. Expectations for Cart.com are high, and we are building a company that can scale to $100B in revenue and beyond. Supported by the Startup Program by Google Cloud and Google Cloud solutions, we’re establishing a technology platform to transform all aspects of ecommerce for brands worldwide. 

Partner in disruption

At Cart.com, we’re currently targeting an underserved market. Our ideal customer is beyond demonstrating product-market-fit and is now at an inflection point seeking a growth opportunity. Typically, those companies are generating between $1M and $100M in annual revenue. We’ve seen an enthusiastic response from brands and retailers as well as investors, with backing from investors in just over a year totaling $143 million in three funding rounds.

Our strategy is to build an integrated ecommerce model that combines best-of-breed solutions, many of which we gain through acquisitions and then build upon to provide a streamlined and fully integrated experience for our brands. We’ve made seven acquisitions so far to round out our online store, order fulfillment, marketing services, customer service, and we have launched some integral partnerships including easy access to growth capital through our relationship with Clearco and product protection for customers on every purchase with Extend. Instead of acquiring a data company, we’re building our data platform on Google Cloud, across each operating function for a single-view for brands to harness actionable data. We see Google Cloud as the leader for data management, analytics, machine learning (ML) and artificial intelligence (AI).

Other reasons why we’re building our business on Google Cloud include scalability, excellence, security, reach, and data analytics that are far superior to other environments.

We also feel a cultural and mission alignment with Google Cloud and envision leaning into a long-term partnership of marketing, selling, and disrupting the disruptors together. Equally important to us are the investments Google Cloud is willing to make in early-stage companies like ours. The support through the Google Cloud for Startups program has been outstanding.

Built on Google Cloud

A wide range of Google Cloud solutions provide the foundation for our platform. For instance, Cloud Pub/Sub keeps our services communicating with one another. We rely on fully managed relational databases, like Cloud SQL and Cloud Spanner, to securely handle the huge volume of brand and shopper data generated every day.

Cloud Run allowed us to develop inside of containers before our Kubernetes infrastructure was ready to go. Now, we are taking advantage of all the capabilities in Google Kubernetes Engine. BigQuery integrates with all Google Cloud solutions and offers true data streaming natively out of the box, along with Dataflow for advanced analytics. We also use Container Registry to store and manage our Docker container images. Right now, we’re testing Cloud Composer to evaluate using it for data workflow orchestration instead of Apache Airflow.

The openness of the Google Cloud environment is further enabled by Anthos, which we may deploy soon to perform data integrations quickly as we acquire more companies over the next year. For example, if we acquire a company using Azure, we can easily align it with our Google Cloud ecosystem.

Enabling ecommerce 2.0

Recently, our team has been experimenting with Google Cloud Vertex AI and the fully managed services of AI deployment and ML operations. The capabilities would save us substantial time in the management of the ML lifecycle which allows us to focus more on developing proprietary AI that will transform commerce at scale.

Because Google Cloud is so far ahead in data science, our teams benefit from deep Google Cloud expertise as we look to provide brands with unmatched insights into customers to improve services and revenue. We’re also planning to test Recommendations AI among other tools to deploy customer product recommendations and personalization as turnkey productized offerings. Moving forward, we will likely use Bigtable to aid in serving machine learning to hundreds of thousands of brands due to its low latency and scalability.

Fanatical about brand success

We know that our work with Google Cloud for Startups and use of Google Cloud solutions for best-in-class data management, analytics, ML, and AI will enable us to offer even more transformative services to brands.

We also see the opportunity to use our platform and customer insights to break down barriers between brands, enabling retailers to share information and work better together when it’s in their best interests. What we’re building today on Google Cloud is fundamentally changing what’s possible for retailers of any size everywhere. 

As a startup, when recruiting talent or working with prospective customers, it helps to share our success with Google Cloud. We view them as an extension of the Cart.com team. It also validates our business as we continue building a more integrated, holistic approach to commerce that opens new opportunities and drives growth for brands worldwide.

For more details about Cart.com’s vision for unified ecommerce, check out our video.

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.

Businesses around the globe are realizing the benefits of replacing legacy data silos with cloud-based enterprise data warehouses, including easier collaboration across business units and access to insights within their data that were previously unseen. However, bringing data from numerous disparate data sources into a single data warehouse requires you to develop pipelines that ingest data from these various sources into your enterprise data warehouse. Historically, this has meant that data engineering teams across the organization procure and implement various tools to do so. But this adds significant complexity to managing and maintaining all these pipelines and makes it much harder to effectively scale these efforts across the organization. Developing enterprise-grade, cloud-native pipelines to bring data into your data warehouse can alleviate many of these challenges. But, if done incorrectly, these pipelines can present new challenges that your teams will have to spend their time and energy addressing. 

Developing cloud-based data ingestion pipelines that replicate data from various sources into your cloud data warehouse can be a massive undertaking that requires significant investment of staffing resources. Such a large project can seem overwhelming and it can be difficult to identify where to begin planning such a project. We have defined the following principles for data pipeline planning to begin the process. These principles are intended to help you answer key business questions about your effort and begin to build data pipelines that address your business and technical needs. Each section below details a principle of data pipelines and certain factors your teams should consider as they begin developing their pipelines.

Principle 1: Clarify your objectives

The first principle to consider for pipeline development is clarify your objectives. This can be broadly defined as taking a holistic approach to pipeline development that encompasses requirements from several perspectives: technical teams, regulatory or policy requirements, desired outcomes, business goals, key timelines, available teams and their skill sets, and downstream data users. Clarifying your objectives clearly identifies and defines requirements from each key stakeholder at the beginning of the process and continually checks development against these requirements to ensure the pipelines built will meet these requirements.This is done by first clearly defining the desired end state for each project in a way that addresses a demonstrated business need of downstream data users. Remember that data pipelines are almost always the means to accomplish your end state, rather than the end state itself. An example of an effectively defined end-state is “enabling teams to gain a better understanding of our customers by providing access to our CRM data within our cloud data warehouse” rather than “move data from our CRM to our cloud data warehouse”. This may seem like a merely semantic difference, but framing the problem in terms of business needs helps your teams make technical decisions that will best meet these needs. 

After clearly defining the business problem you are trying to solve, you should facilitate requirement gathering from each stakeholder and use these requirements to guide the technical development and implementation of your ingestion pipelines. We recommend gathering stakeholders from each team, including downstream data users, prior to development to gather requirements for the technical implementation of the data pipeline. These will include critical timelines, uptime requirements, data update frequency, data transformation, DevOps needs, and security, policy, or regulatory requirements by which a data pipeline must meet.

Principle 2: Build your team

The second principle to consider for pipeline development is build your team. This means ensuring you have the right people with the right skills available in the right places to develop, deploy, and maintain your data pipelines. After you have gathered your pipeline requirements, you can begin to develop a summary architecture that will be used to build and deploy your data pipelines. This will help you identify the human talent you will need to successfully build, deploy, and manage these data pipelines and identify any potential shortfalls that would require additional support from either third-party partners or new team members.

Not only do you need to ensure you have the right people and skill sets available in aggregate, but these individuals need to be effectively structured to empower them to maximize their abilities. This means developing team structures that are optimized for each team’s responsibilities and their ability to support adjacent teams as needed.

This also means developing processes that prevent blockers to technical development whenever possible, such as ensuring that teams have all of the appropriate permissions they need to move data from the original source to your cloud data warehouse without violating the concept of least privilege. Developers need access to the original data source (depending on your requirements and architecture) in addition to the destination data warehouse. Examples of this are ensuring that developers have access to develop and/or connect to a Salesforce Connected App or read access to specific Search Ads 360 data fields.

Principle 3: Minimize time to value

The third principle to consider for pipeline development is minimize time to value. This means considering the long-term maintenance burden of a data pipeline prior to developing and deploying it in addition to being able to deploy a minimum viable pipeline as quickly as possible. Generally speaking, we recommend the following approach to building data pipelines to minimize their maintenance burden: Write as little code as possible. Functionally, this can be implemented by:

1. Leveraging interface-based data ingestion products whenever possible. These products minimize the amount of code that requires ongoing maintenance and empower users who aren’t software developers to build data pipelines. They can also reduce development time for data pipelines, allowing them to be deployed and updated more quickly. 

• Products like Google Data Transfer Service and Fivetran allow for managed data ingestion pipelines by any user to centralize data from SaaS applications, databases, file systems, and other tooling. With little to no code required, these managed services enable you to connect your data warehouse to your sources quickly and easily.
• For workloads managed by ETL developers and data engineers, tools like Google Cloud’s Data Fusion provide an easy-to-use visual interface for designing, managing and monitoring advanced pipelines with complex transformations.

2. Whenever interface-based products or data connectors are insufficient, use pre-existing code templates. Examples of this include templates available for Dataflow that allow users to define variables and run pipelines for common data ingestion use cases, and the Public Datasets pipeline architecture that our Datasets team uses for onboarding.

3. If neither of these options are sufficient, utilize managed services to deploy code for your pipelines. Managed services, such as Dataflow or Dataproc, eliminate the operational overhead of managing pipeline configuration by automatically scaling pipeline instances within predefined parameters.

Principle 4: Increase data trust and transparency

The fourth principle to consider for pipeline development is increase data trust and transparency. For the purposes of this document, we define this as the process of overseeing and managing data pipelines across all tools. Numerous data ingestion pipelines that each leverage different tools or are not developed under a coordinated management plan can result in “tech sprawl”, which significantly increases the management overhead of data ingestion pipelines as the quantity of data pipelines increases. This becomes especially cumbersome if you are subject to service-level agreements, or legal, regulatory, or policy requirements for overseeing data pipelines. Preventing tech sprawl is, by far, the best strategy for dealing with it by developing streamlined pipeline management processes that automate reporting. Although this can theoretically be achieved by building all of your data pipelines using a single cloud-based product, we do not recommend doing so because it prevents you from taking advantage of features and cost optimizations that come with choosing the best product for your use case. 

A monitoring service such as Google Cloud Monitoring Service or Splunk that automates metrics, events, and metadata collection from various products, including those hosted in on-premise and hybrid computing environments, can help you centralize reporting and monitoring of your data pipelines. A metadata management tool such as Google Cloud’s Data Catalog or Informatica’s Enterprise Data Catalog can help you better communicate the nuances of your data so users better understand which data resources are best fit for a given use case. This significantly reduces your pipeline’s governance burden by eliminating manual reporting processes that often result in inaccuracies or lagging updates.

Principle 5: Manage costs

The fifth principle to consider for pipeline development is manage costs. This encompasses both the cost of cloud resources and the staffing costs necessary to design, develop, deploy, and maintain your cloud resources. We believe that your goal should not necessarily be to minimize cost, but rather maximizing the value of your investment. This means maximizing the impact of every dollar spent by minimizing waste in cloud resource utilization and human time. There are several factors to consider when it comes to managing costs:

• Use the right tool for the job – Different data ingestion pipelines will have different requirements for latency, uptime, transformations, etc. Similarly, different data pipeline tools have different strengths and weaknesses. Choosing the right tool for each data pipeline can help your pipelines operate significantly more efficiently. This can reduce your overall cost, free up staffing time to focus on the most impactful projects, and make your pipelines much more efficient.
• Standardize resource labeling –  Implement and utilize a consistent labeling schema across all tools and platforms to have the most comprehensive view of your organization’s spending. One example is requiring all resources to be labeled by the cost center or team at time of creation. Consistent labeling allows you to monitor your spend across different teams and calculate the overall value of your cloud spending.
• Implement cost controls – If available, leverage cost controls to prevent errors that result in unexpectedly large bills. 
• Capture cloud spend – Capture your spend on all cloud resource utilization for internal analysis using a cloud data warehouse and a data visualization tool. Without it, you won’t understand the context of changes in cloud spend and how they correlate with changes in business.
• Make cost management everyone’s job – Managing costs should be part of the responsibilities of everyone who can create or utilize cloud resources. To do this well, we recommend making cloud spend reporting more transparent internally and/or implementing chargebacks to internal cost centers based on utilization.

Long-term, the increased granularity in cost reporting available within Google Cloud can help you better measure your key performance indicators. You can shift from cost-based reporting (i.e. – “We spent $X on BigQuery storage last month”) to value-based reporting (i.e. – “It costs $X to serve customers who bring in $Y revenue”). 

To learn more about managing costs, check out Google Cloud’s “Understanding the principles of cost optimization” white paper.

Principle 6: Leverage continually improving services

The sixth principle is leverage continually improving services. Cloud services are consistently improving their performance and stability, even if some of these improvements are not obvious to users. These improvements can help your pipelines run faster, cheaper, and more consistently over time. You can take advantage of the benefits of these improvements by:

• Automating both your pipelines and pipeline management: Not only should data pipelines be automated, but almost all aspects of managing your pipelines can also be automated. This includes pipeline/data lineage tracking, monitoring, cost management, scheduling, access management and more. This helps reduce long-term operational costs of each data pipeline that can significantly alter your value proposition and prevent any manual configurations from negating the benefits of later product improvements.
• Minimizing pipeline complexity whenever possible: While ingestion pipelines are relatively easy to develop using UI-based or managed services, they also require continued maintenance as long as they are in use. The most easily maintained data ingestion pipelines are typically the ones that minimize complexity and leverage automatic optimization capabilities. Any transformation in a data ingestion pipeline is a manual optimization of the pipeline that may struggle to adapt or scale as the underlying services improve. You can minimize the need for such transformations by building ELT (extract, load, transform) pipelines rather than ETL (extract, transform, load) pipelines. This pushes transformations down to the data warehouse that is use a specifically optimized query engine to transform your data rather than manually configured pipelines.

Next steps

If you’re looking for more information about developing your cloud-based data platform, check out our Build a modern, unified analytics data platform whitepaper. You can also visit our data integration site to learn more and find ways to get started with your data integration journey.

Once you’re ready to begin building your data ingestion pipelines, learn more about how Cloud Data Fusion and Fivetran can help you make sure your pipelines address these principles.

The Home Depot, Inc., is the world’s largest home improvement retailer with annual revenue of over $151B. Delighting our customers—whether do-it-yourselfers or professionals—by providing the home improvement products, services, and equipment rentals they need, when they need them, is key to our success.

We operate more than 2,300 stores throughout the United States, Canada, and Mexico. We also have a substantial online presence through HomeDepot.com, which is one of the largest e-commerce platforms in the world in terms of revenue. The site has experienced significant growth both in traffic and revenue since the onset of Covid-19.

Because many of our customers shop at both our brick-and-mortar stores and online, we’ve embarked on a multi-year strategy to offer a shopping experience that seamlessly bridges the physical and digital worlds. To maximize value for the increasing number of online shoppers, we’ve shifted our focus from event marketing to personalized marketing, as we found it to be far more effective in improving the customer experience throughout the sales journey. This led to changing our approach to marketing content, email communications, product recommendations, and the overall website experience.

Challenge: launching a modern marketing strategy using legacy IT

For personalized marketing to be successful, we had to improve our ability to recognize a customer at the point of transaction so we could—among other things—suspend irrelevant and unnecessary advertising. Most of us have experienced the annoyance of receiving ads for something we’ve already purchased, which can degrade our perception of the brand itself. While many online retailers can identify 100% of their customer transactions due to the rich information captured during checkout, most of our transactions flow through physical stores, making this a more difficult problem to solve.

Our old legacy IT system, which ran in an on-premises data center and leveraged Hadoop, also challenged us since maintaining both the hardware and software stack required significant resources. When that system was built, personalized marketing was not a priority, so it took several days to process customer transaction data and several weeks to roll out any system changes. Further, managing and maintaining the large Hadoop cluster base presented its own set of issues in terms of quality control and reliability, as did keeping up with open-source community updates for each data processing layer.

Adopting a hybrid approach

As we worked through the challenges of our legacy system, we started thinking about what we wanted our future system to look like. Like many companies, we began with a “build vs. buy” analysis. We looked at several products on the market and determined that while each of them had their strengths, none was able to offer the complete set of features we needed.

Our project team didn’t think it made sense to build a solution from scratch, nor did we have access to the third-party data we needed. After much consideration, we decided to adopt a solution that combined a complete rewrite of the legacy system with the support of a partner to help with the customer transaction matching process.

Building the foundation on Google Cloud

We chose Google Cloud’s data platform, specifically BigQuery, Dataflow, DataProc, Cloud Storage, and Cloud Composer. Google Cloud platform empowered us to break down data silos and unify each stage of the data lifecycle from ingestion, storage, and processing to analysis and insights. Google Cloud offered best-in-class integration with open-source standards and provided the portability and extensibility we needed to make our hybrid solution work well. The open standards of BigQuery’s BQ Storage API allowed us to leverage fast BQ storage layers to be utilized with other compute platforms, e.g., DataProc.

We used BigQuery combined with Dataflow to integrate our first- and third-party data into an enterprise data and analytics data lake architecture. The system then combined previously siloed data and used BigQuery ML to create complete customer profiles spanning the entire shopping experience, both in-store and online.

Understanding the customer journey with the help of Dataflow and BigQuery

The process of developing customer profiles involves aggregating a number of first- and third-party data sources to create a 360-degree view of the customer based on both their history and intent. It starts with creating a single historical customer profile through data aggregation, deduplication, and enrichment. We used several vendors to help with customer resolution and NCOA (Change of Address) updates, which allows the profile to be house-holded and transactions to be properly reconciled to both the individual and the household. This output is then matched to different customer signals to help create an understanding of where the customer is in their journey—and how we can help.

The initial implementation used Google Dataflow, Google’s streaming analytics solution, to load data from Google Cloud Storage into BigQuery and perform all necessary transformations. The Dataflow process was converted into BQML (BigQuery Machine Learning) since this significantly reduced costs and increased visibility into data jobs. We used Google Cloud Composer, a fully managed workflow orchestration service, to help orchestrate all data operations and DataProc and Google Kubernetes Engine to enable special case data integration so we could quickly pivot and test new campaigns. The architecture diagram below shows the overall structure of our solution.

Taking full advantage of cloud-native technology

In our initial migration to Google Cloud, we moved most of our legacy processes in their original form. However, we quickly learned that this approach didn’t take full advantage of the cloud-native and more improved features Google Cloud offered such as auto scaling of resources, flexibility to decouple storage from the compute layer, and a wide variety of options to choose the best tool for the job. We refactored our Hadoop-based data pipelines written in Java-based Map Reduce and our Pig Latin jobs to Dataflow and BigQuery jobs. This dramatically reduced processing time and made our data pipeline code concise and efficient.

Previously, our legacy system processes ran longer than intended, and data was not used efficiently. Optimizing our code to be cloud-native and leveraging all the capabilities of Google Cloud services resulted in reduced run times. We decreased our data processing window from 3 days to 24 hours, improved resource usage by dramatically reducing the amount of compute we used to possess this data, and built a more streamlined system. This in turn reduced cloud costs and provided better insight. For example, DataFlow offers powerful native features to monitor data pipelines, enabling us to be more agile.

Leveraging the flexibility and speed of the cloud to improve outcomes

Today, using a continuous integration/continuous delivery (CI/CD) approach, we can deploy multiple system changes each week to further improve our ability to recognize in-store transactions. Leveraging the combined capabilities of various Google Cloud systems—BigQuery, DataFlow, Cloud Composer, Dataproc, and Cloud Storage–we drastically increased our ability to recognize transactions and can now connect over 75% of all transactions to an existing household. Further, the flexible Google Cloud environment coupled with our cloud-native application makes our team more nimble and better able to respond to emerging problems or new opportunities.

Increased speed has led to better outcomes in our ability to match transactions across all sales channels to a customer and thereby improve their experience. Before moving to Google Cloud, it took 48 to 72 hours to match customers to their transactions, but now we can do it in less than 24 hours.

Making marketing more personal—and more efficient

The ability to quickly match customers to transactions has huge implications for our downstream marketing efforts in terms of both cost and effectiveness. By knowing what a customer has purchased, we can turn off ads for products they’ve already bought or offer ads for things that support what they’ve bought recently. This helps us use our marketing dollars much more efficiently and offer an improved customer experience.

Additionally, we can now apply the analytical models developed using BQML and Vertex AI to sort customers into audiences. This allows us to more quickly identify a customer’s current project, such as remodeling a kitchen or finishing a basement, and then personalize their journey by offering them information on products and services that matter most at a given point through our various marketing channels. This provides customers with a more relevant and customized shopping journey that mirrors their individual needs.

Protecting a customer’s privacy

With this ability to better understand our customers, we also have the responsibility to ensure we have good oversight and maintain their data privacy. Google’s cloud solutions provide us the security needed to help protect our customers’ data, while also being flexible enough to allow us to support state and federal regulations, like the California Customer Privacy Act. This way we can provide a customer the personalized experience they desire without having to fear how their data is being used.

With flexible Google Cloud technology in place, The Home Depot is well positioned to compete in an industry where customers have many choices. By putting our customers’ needs first, we can stay top of mind whenever the next project comes up.