Today we’re hosting our Retail & Consumer Goods Summit, a digital event dedicated to helping leading retailers and brands digitally transform their business. For me, this is a personally exciting moment, as I see tremendous opportunities for those companies that choose to focus on their customers and leverage technology to elevate experiences.

Our event includes breakout sessions to help retailers and brands become customer centric, embrace the digital moment and transform their operations. Some of my favorite sessions include: 

• Why Search Abandonment is the metric that matters, highlighting Retail Search, and featuring a conversation with Macy’s
• Driving Consumer Closeness in a Privacy-Centric World, discussing how retailers and brands can create a successful first party data strategy, featuring a conversation with P&G
• The Modern Store: 7 Innovation Hotspots, sharing how retailers and brands can approach store transformation to unlock the most value from technology, featuring a conversation with The Home Depot.   

I’ll be speaking in our Retail Spotlight session, discussing the current retail landscape and our industry approach, followed by conversations with Albert Bertilsson, Head of Engineering – Edge at IKEA Retail (Indga Group) and Neelima Sharma, Senior Vice President, Technology Ecommerce, Marketing and Merchandising at Lowe’s. 

Let me share a bit more about the topics we’ll discuss in that session.

In retail specifically, digital-first shopping journeys are blurring the lines between the physical and digital brand experience. Shoppers want to know what’s available before they visit your stores, and they expect fulfillment options like curbside pickup. We see this when tracking trends for interest in curbside pickup or in-stock items.

This has left many retailers asking how they can get smarter with their data, tackle the $300 billion dollar problem of “search abandonment,” move faster to create new customer experiences, and do a better job of connecting their employees and customers – with confidence.

Our team has been spending time thinking about how we can rise and succeed in this new era together. We continue to focus on areas where we can bring the best of our capabilities to our retail customers around the world. And we’re focused on ways we can bring the best of what Google has to offer through cloud integrations.

Our goal is to help retailers become customer-centric and data-driven, capture digital and omni-channel revenue growth, create the modern store and drive operational improvement.

Let’s dig into each of these strategic pillars in a bit more detail. 

Become customer centric and data driven

Customers today expect experiences that are timely, targeted, and tailored for them and their needs, and reject experiences that can’t deliver these features. Data modeling, legacy technology, and siloed systems often prevent retailers from providing that level of personalized experience. 

At Google Cloud, we work with global retailers and our ecosystem partners to activate and bring value from first-party data, particularly in the field of customer data platforms (CDPs). This includes integrations from Google Cloud, such as our business intelligence platform Looker and other popular platforms to power one source of customer data through the organization. We also help retailers modernize their data warehouse with Looker for gathering business intelligence across their organization. This is important not just for consumer data, but inventory, supply chain, and store operations as well. 

Capture Digital and Omnichannel Growth 

We power some of the largest e-commerce sites in the world, helping them scale for Black Friday, Cyber Monday, and other holiday events. While scale is critically important, it’s also important to consider the quality of the online experience. How do your customers find products? How can you help deliver seamless online and omnichannel experiences? 

To help, we’re building product discovery solutions that bring together the best of our technologies that help retailers drive engagement with their consumers. Retail Search, for example, gives retailers the ability to provide Google-quality search on their own digital properties – search that is customizable for their unique business needs and built upon Google’s advanced understanding of user intent & context. 

The imperative is clear. Recent research found that retailers lose more than $300 billion to search abandonment — when purchase intent is not converted into a sale due to bad search results — every year in the US alone. 

Today, we announced that Retail Search is available to a larger set of retailers. If you are interested in learning more about Retail Search you can contact your sales representative for additional details.

Create the modern store  

With the rise of buying trends like curbside pickup and proximity-based search, our Google Maps Platform team is working on new products and features to help raise inventory awareness for your shoppers. We want to help you make it easier for them to understand what’s available to purchase in their channel of choice.

With Product Locator, each product page connects customers with information they need for local pickup and delivery options. This ensures customers are aware of pickup and delivery options throughout the buying journey—not just checkout. 

Awareness of local inventory can boost a wide range of key metrics for your business. Shopify recently shared that shoppers who opt for local pickup over delivery had a +13% higher conversion rate and that 45% of local pickup customers make an additional purchase upon arrival.

This is just one quick example of how our Google Maps Platform team can improve experiences for your shoppers.

Operational improvement

It can be challenging to operate in a world and at a time when consumer behavior and supply chains are so disrupted and volatile, and where entire retail teams had to go remote during the pandemic and beyond. 

We’re working with retailers to leverage artificial intelligence (AI) to improve consumer experience through chat bots or conversational commerce that solves problems for customers from anywhere. You can learn more about these offerings in our Conversational Commerce with Google breakout session, featuring Albertsons.

As the need for digital transformation continues to accelerate, Google Cloud is helping retailers stay ahead of the curve with solutions for digital and omnichannel growth, data-driven and customer-focused experiences, and operational improvement. For every era of cloud technologies, from the past into the future, Google Cloud is committed to providing solutions to retailers.

Read more about our solutions for retail, and check out additional sessions, including the CPG Industry Spotlight Session How To Grow Brands in Times of Rapid Change – Featuring L’Oréal at our Retail & Consumer Goods Summit.

Investing in Artificial Intelligence (AI) can bring a competitive advantage to your organization. If you’re in charge of an AI or Data Science team, you’ll want to measure and maximize the value that you’re providing. Here is some advice from our years of experience in the field. 

A checklist to embark on a project: 

As you embark on projects we’ve found it’s good to have the following areas covered: 

• Have a customer. It’s important to have a customer for your work, and that they  agree with what you’re trying to achieve. Be sure to know what value you’re delivering to them. 
• Have a business case.  This will rely on estimates and assumptions, and may take no more than a few minute’s work.  You should revise this, but always know what justifies your team’s effort, and what you (and your customer) expect to get in return. 
• Know what process you will change or create. You’ll want to put your work in production, so you have to be clear about what business operations are changing or created around your work and who needs to be involved to make it happen
• Have a measurement plan. You’ll want to show that ongoing work is impacting some relevant business indicator. Measure and show incremental value. The goal of these measurements is to establish what has changed because of your project that would otherwise not have changed. Be sure to account for other factors like seasonality or other business changes that may affect your measurements.
• Use all the above to get your organization’s support for your team and your work. 

What measures to use?

As you start the work, what measures and indicators can you use to show that your team’s work is useful for your organization?

How many decisions you make. A major function of ML is to automate and optimize decisions: which product to recommend, which route to follow, etc. Use logs to track how many decisions your systems are making. 

Changes to revenue or costs. Better and quicker decisions often lead to increased revenue or savings. If possible, measure it directly, otherwise estimate it (for example fuel costs saved from less distance traveled, or increased purchases from personalized offers). 

As an example, the Illinois Department of Employment Security is using Contact Center AI to rapidly deploy virtual agents to help more than 1 million citizens file unemployment claims. To measure success the team tracked the two outcomes:  (1) the number of web inquiries and voice calls they were able to handle, and (2) the overall cost of the call center after the implementation. Post implementation, they were able to observe more than 140,000 phone and web inquiries per day and over 40,000 after-hours calls per night. They  also anticipate an estimated annual cost savings of $100M based on an initial analysis of IDES’s virtual agent data (see more in the link to case study).

Implementation costs. The other side of increased revenue or savings, is to put your achievements in the context of how much they cost. Show the technology costs that your team incurs and, ideally, how you can deliver more value, more efficiently. 

How much time was saved.  If the team built a routing system then it saved travel time, if it built an email classifier then it saved reading time, etc. Quantify how many hours were given back to the organization thanks to the efficiency of your system. 

In the medical field, quicker diagnostics matter. Johns Hopkins University’s Brain Injury Outcomes (BIOS) Division has focused on studying brain hemorrhage aiming to improve medical outcomes. The team identified the time to insights as a key metric in measuring business success. They experimented with a range of cloud computing solutions like Dataflow, Cloud Healthcare API, Compute Engine, and AI Platform for distributed training to accelerate iterations. As a result, in their recent work they were able to accelerate insights from scans from approximately 500 patients from 2,500 hours to 90 minutes.

How many applications your team supports. Some of your organization’s operations don’t use ML (say reconciling financial ledgers) but others do. Know how many parts of your organization benefit from the optimization and automation your team builds.

User experience. You may be able to measure your customer’s experience: fewer complaints, better reviews, reduced latency, more interactions, etc. This is valid both for internal and external stakeholders. At Google we measure usage and regularly ask for feedback on any internal system or process.

One of our customers, The City of Memphis, is using VisionAI and ML to tackle a common but very challenging issue: identifying and addressing potholes.  The implementation team identified the percentage increase of potholes identified as one of the key metrics along with accuracy and cost savings. The solution captures video footage from it’s public vehicles and leverages Google Cloud capabilities like Compute Engine, AI Platform, and BigQuery to automate the review of videos.  The project increased  pothole detection by 75% with over 90% accuracy. By measuring and demonstrating these outcomes, the team proved the viability of a cost-effective, cloud-based machine learning model and is looking into new applications of AI and ML that will further improve city services and help it build a better future for its 652,000 residents. 

Acknowledgements

Filipe and Payam would like to thank our colleague and co-author Mona Mona (AI/ML Customer Engineer, Healthcare and lifesciences) who contributed equally to the writing.