Digital technology offers increasing flexibility and choice to consumers. As a result, the retail industry is dramatically shifting toward more tailored and personalized experiences for shoppers, and businesses are rethinking how they deliver value to customers.

This couldn’t be more true for the beauty retailing industry where leading companies are turning to digital technology to create customized shopping experiences.

At Google Cloud, we’re particularly excited about our work with Ulta Beauty, the largest beauty retailer in the United States with more than 1196 stores in all 50 states, and how the company is using Google Cloud technology solutions to power personalization and redefine beauty retailing.

Established in 1990, Ulta Beauty has had incredible success as a company, and as customers become more discerning and curious about their purchases, the company is finding new ways to meet their changing needs.

Recently, leaders at Ulta Beauty recognized a huge opportunity to complement and enhance the shopping experience by helping beauty enthusiasts navigate through more than 500 brands and 25,000 products carried in their stores and online channel.

They decided to leverage the data from Ulta Beauty’s successful Ultamate Rewards loyalty program to create and offer more unique and personalized user experiences.

With more than 30 million members generating data through sales, transactions, product reviews, and social media engagement, Ulta Beauty’s Loyalty Program creates a comprehensive data set, and the company sought the right technology partner to help organize, analyze and transform that data into valuable insights for its customers.

Ulta Beauty’s leaders knew they had an opportunity to leverage data analytics and machine learning to reach customers in new ways, enhance the guest experience, and continue to grow their active loyalty member base. After considering a number of cloud providers, they chose to expand their existing partnership with Google Cloud.

“Google Cloud listened to our needs and worked in tandem with our engineering team to address our challenges,” said Michelle Pacynski, vice president of digital innovation at Ulta Beauty. “The ease of working with the Google Cloud team and their breadth of experience made the decision a no-brainer, laying the foundation for a great partnership.”  

In 2019, Ulta Beauty announced it was working with Google Cloud Platform to unify and organize its data, using:

• BigQuery to perform data analysis and generate dynamic content, personalized product recommendations, and event-based messages for customers.
• Cloud Storage to provide highly available, secure, resilient and cost-effective access to data across the entire enterprise.
• Compute Engine for the high-performance scalability needed to grow with customer demand while painlessly migrating existing applications to the cloud.
• Anthos to build a hybrid cloud foundation that allows their applications to take advantage of all this data, combining the power and flexibility of GKE with the ability to leverage their existing investment in secure infrastructure on-premises.

Our partnership with Ulta Beauty has enabled increased engagement with customers in store and online, and the creation of new tools and capabilities, including a new Virtual Beauty Advisor tool to deliver tailored recommendations and help shoppers choose the right products, and a Customer Conversation Platform that’s enabling deeper connections with guests, ultimately driving customer loyalty.

“It’s been a really efficient process so far due in part to the ease of working with the Google team,” said Michelle Pacynski, vice president of digital innovation at Ulta Beauty. “They’re experienced, approachable, and their can-do style makes for a great partnership. They listened to our needs and worked in tandem with our engineering team, figuring things out, and getting it done.”

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.

Customers today expect brands to know what they want. In fact, Forbes cited that 71% of customers feel frustrated when the shopping experience is impersonal. From interests to purchase habits, companies need to target customers effectively in order to stand out from the plethora of competitors in the online marketplace.

“Our mission is to help brands engage customers with the most appropriate marketing messages at the right place and at the right time while respecting consumer privacy and ensuring regulatory compliance. The experience of Google Cloud in working with large-scale datasets makes the platform an excellent fit for us.”

—Projjol Banerjea, co-founder and Chief Product Officer, Zeotap

Leveraging first-, second-, and third-party data, Zeotap’s Customer Intelligence Platform (CIP)—a CDP with additional identity resolution and third-party data enrichment capabilities—allows brands to engage with their known and unknown users with tailored marketing messages and next best offers or actions. It also offers out-of-box algorithms for standard marketing use cases such as promoting a specific product that will resonate with audiences and custom algorithms for very niche and specific use cases.

“Our mission is to help brands engage customers with the most appropriate marketing messages at the right place and at the right time while respecting consumer privacy and ensuring regulatory compliance. The experience of Google Cloud in working with large-scale datasets makes the platform an excellent fit for us,” says Projjol Banerjea, co-founder and Chief Product Officer at Zeotap.

“With BigQuery, we are able to operate more efficiently, removing 80% of the operation load that we would otherwise have to manage on a different cloud provider. As a result, we get to build and deliver products faster.”

—Sathish K S, VP Engineering, Zeotap

Improving data processing to deliver products faster

The cloud-native company migrated from its previous provider to Google Cloud in October 2019 because it was attracted to the benefits of BigQuery as a serverless cloud data warehouse. This was a feature that wasn’t available with its previous provider.

Sathish K S, Engineering Vice-President at Zeotap says, “With BigQuery, we are able to operate more efficiently, removing 80% of the operation load that we would otherwise have to manage on a different cloud provider. As a result, we get to build and deliver products faster.” Since coming onboard BigQuery, Zeotap has been able to increase the speed of its product delivery by 40%.

BigQuery also offers a much higher query limit, which is helpful because Zeotap can converge all of its previous operation load across different platforms into one data warehouse without worrying about it being overloaded.

One of the key services Zeotap offers is customer relationship management (CRM) platform integration. Using Dataflow, Zeotap can easily stream first-party data into BigQuery at scale.

The data integration capabilities of Cloud Data Fusion also complements Dataflow to help Zeotap enhance its API offerings. To illustrate, an ecommerce company may use Zeotap’s internal API to understand their customer’s cart and check-out habits and add Zeotap’s extra layer of data intelligence to it, so they can improve their marketing efforts. Cloud Data Fusion enables a seamless flow of real-time data so that the company can deliver the relevant ads or suggest products just before they make a purchase, which increases the likelihood of them buying more.

Zeotap uses Dataproc and Pub/Sub to manage the large flow of data that goes in and out of its database. Because many of its customers are pushing data in real time, Pub/Sub acts as a queuing engine that feeds them into Dataflow. Likewise, the data from Dataflow is also being channeled back smoothly to the customer endpoints using Pub/Sub.

Being able to automate all of its processes benefitted the DevOps team, as they now have time to focus on developing and improving Zeotap’s product offerings instead of spending time and energy on operations.

Managing a full migration seamlessly

Today, all of Zeotap’s data is hosted on Google Cloud. The company began its lift and shift migration in October 2019 and was complete by April 2020. “We have close to 405 data pipelines, and even after the migration, we had to verify the right datasets. We had terabytes of data to move, and despite this, our operations were not affected,” says Aditya Chandra, Vice-President of Infrastructure and Security at Zeotap.

Apart from the BigQuery capabilities, there were other major things Zeotap looked out for in its decision to move to a new cloud provider. The functional parity of Google Cloud was important so that it did not have to rebuild many of its existing structures. Zeotap also didn’t want any drop in performance during and after the move to a new cloud provider. Finally, as a multi-region company, it used to have to spot instance problems and run them on demand, which had cost implications. With the move, it no longer had to face such issues.

“Whatever Spark code that was already running on our existing system had to be lifted and shifted into Dataproc without any library changes because 60% of our codebase is out of there. We’re glad that this was possible,” says Ameya Agnihotri, Chief Technology Officer.

Managing business continuity with a trusted partner

Zeotap now works with Rackspace Technology (Rackspace) as it continues to optimize its infrastructure operations. As a marketing and technology company, Zeotap needs niche expertise to manage big data processing issues.

Ameya Agnihotri shares, “Given its global expertise in dealing with on-premises as well as cloud solutions, Rackspace can really add value because they are better equipped to troubleshoot and handle complex data operations.” Zeotap has plans to explore more of Google Cloud’s artificial intelligence (AI) and machine learning (ML) capabilities, so having a partner in this journey will be valuable to the team.

With so much data on hand, security is paramount to Zeotap. It does a lot of internal security assessments daily. This is one of the areas where the team works with Rackspace to ensure that it adopts best practices and stays on top of the latest updates. With its ability to handle big data operations, Rackspace also acts as an extension of the Zeotap team that supports the infrastructure side of the business.

“The level of engagement from Google Cloud has been excellent, particularly the ability to bring in expertise from different parts of the organization. The personal touch meant we could reach product owners and managers of specific products. This kind of support is what we really value and appreciate.”

—Ameya Agnihotri , Chief Technology Officer, Zeotap

Future plans and collaboration with Google Cloud

Zeotap is currently exploring Cloud Bigtable and API Gateway as it continues to grow the business and explore new types of services to offer to its customers. Although it has a software-as-a-service (SaaS) offering for customers to self-serve, some may prefer to do a server-to-server integration so that they do not have to worry about the back end at all. For this reason, Zeotap is exploring the possibility of integrating these customers’ APIs in the back end of its API, using Google Cloud’s API Gateway features that are available out of the box. The company is also looking forward to the new features being released on BigQuery, as well as exploring more of the alerting and monitoring capabilities of Google Cloud.

“The level of engagement from Google Cloud has been excellent, particularly the ability to bring in expertise from different parts of the organization,” says Ameya. He shares that the team has had many fortnightly calls when there were issues to address, and the Google Cloud team would help to fix the problems. “The personal touch meant we could reach product owners and managers of specific products. This kind of support is what we really value and appreciate.”

With big plans ahead for Zeotap that include becoming a Google Cloud Technology Partner in the near future, Swapnasarit Sahu, Chief Data and Analytics Officer, is confident that the company has chosen the right cloud solution. “We see Google as one of the frontrunners in the space of AI and ML solutions, which can really help data scientists in developing new and more innovative products and solutions, and we look forward to building great products with them,” he says.