As economic conditions change, retail brands’ reliance on ever-growing customer demand puts these companies at financial and even existential risk. Top-line revenue and active customer growth do not equal profitable growth.

Despite multi-billion dollar valuations for some brands, especially those operating the direct-to-consumer model, the rising costs of meeting shoppers’ high expectations (i.e. free shipping, free returns) along with the escalating cost of goods, fulfillment operations, and delivery costs, create pressure for brands to turn a profit. The ONLY way brands drive profitable growth is by managing variable costs in real-time. This in turn mandates adopting modern data cloud infrastructure including Google Cloud services such as BigQuery.

To unlock the value of data, Google Cloud has partnered with SoundCommerce, a retail data and analytics platform that offers a unique way of connecting marketing, merchandising, and operations data and modeling it within a retail context – all so brands can optimize profitability across the business.

Profitability can be measured per order through short-term metrics like contribution profit or long-term metrics like Customer Lifetime Value (CLV). Often, retailers calculate CLV as a measure of revenue with no consideration for the variable costs of serving that customer, for instance: the costs of marketing, discounting, delivering orders to the doorstep, or post-conversion operational exceptions (e.g. cancellations, returns).

What may first appear to be a high lifetime value customer through revenue-based CLV models, may not be profitable at all. By connecting marketing, merchandising, and operations data together, brands can understand their most profitable programs, channels, and products through the lens of actual customer value – and optimize accordingly.

The journey for brands starts with the awareness and data enablement of a more complex data set containing all variable revenue, cost, and margin inputs. What does a retailer need to do to achieve this?

1. All data together in one place
2. Matched and deduplicated disparate data
3. Data is organized into entities and concepts that business decision makers can understand
4. A common definition of key business metrics (this is especially important yet challenging for retailers because systems are siloed by the department and common KPIs like contribution profit per order may be defined differently across a company)
5. Branched outputs for actionability: BI dashboards vs. data activation to improve marginal profit.

Once brands understand these requirements, up next is execution. This responsibility may fall within a ‘build’ strategy on the shoulders of technical IT/data leadership and their team(s) within a brand. This offers maximum control but at maximum cost and time-to-value. Retail data sources are complicated and change often. Technical teams within brands can spend too much time building and maintaining the tactical data ingestion process, which means they are spending less time deriving business value from the data.

But it doesn’t have to be this hard. There are other options in the market that brands can consider, such as a tool like SoundCommerce which provides a library of data connectors, pre-built and customizable date mappings, and outbound data orchestrations all tailor-made and ready-to-go for retail brands.

SoundCommerce empowers retail technology leaders to:

• Maintain data ownership to allow users to send modeled data to external data warehouses or layer-on business analytics tools for greater flexibility
• Provide universal access to data across the organization so every employee can have access to and participate in a low-code or no-code experience
• Expand and democratize data exploration and activation among both technical and non-technical users

For retail business and marketing decision-makers, SoundCommerce makes it easy to:

• Calculate individual customer lifetime value through the lens of profitability – not just revenue.
• Evaluate and predict lifetime shopper performance – identify which programs drive the highest CLV impact
• Set CAC and retention cost thresholds – determine optimal Customer Acquisition Costs (CAC) and retention costs that ensure marketing efforts are profitable through the lens of total lifetime transactions

Below is a sample data flow that illustrates how SoundCommerce connects to all the tools a Retailer is using and ingests the first-party data, agnostic of the platform. SoundCommerce then models and transforms the data within the retail context for brands to take immediate action on the insights they gain from the modeled data.

SoundCommerce built on Google Cloud Platform Services

SoundCommerce selected the Google Cloud Platform and its services to achieve what they set out to do – drive profitability for retailers and brands. SoundCommerce perfected this very need of retailers to centralize and harmonize data, map to business users’ needs to infer key metrics and insights by visualizing the data, or reuse the produced datasets to build upon other use cases specific to retailers. SoundCommerce built a cloud-native solution on Google Cloud leveraging the data cloud platform. Data from various sources are ingested in raw format, parsed, and processed as messages in Cloud Storage buckets using Google Kubernetes Engine (GKE) and stored as individual events in Cloud BigTable. A mapping engine maps the data to proprietary data models stored in BigQuery to store the produced data as datasets. Customers use visualization dashboards in Looker to access the data exposed as materialized views from within BigQuery. In many cases, these views are directly accessible by the customer per their use case.

Power Retail Profitable Growth with Analytics Hub

SoundCommerce adopted BigQuery and the recent release of Analytics Hub – a data exchange that enables BigQuery users to efficiently and securely share data. This feature ensures a more scalable direct access experience for SoundCommerce’s current and future customers. It meets brands where they are in their data maturity by giving them the keys to own their data and control their analytics-driven business outcomes. With this feature, retailers can customize their analysis with additional data they own and manage.

“Retail Brands need flexible data models to make key business decisions in real-time to optimize contribution profit and shopper lifetime value,” said SoundCommerce CEO Eric Best. “GCP and BigQuery with Analytics Hub make it easy for SoundCommerce to land and maintain complex data sets, so brands and retailers can drive profitable shopper experiences with every decision.”

SoundCommerce uses Analytics Hub to increase the pace of innovation by sharing datasets with its customers in real time by using the streaming functionality of BigQuery. Customers subscribe to specific datasets through a data exchange as data is generated from external data sources and published into BigQuery. This leads to a natural flow of data that scales easily to hundreds of exchanges and thousands of listings. From the Customer’s viewpoint, Analytics Hub enables them to search listings and coalesce data from other software vendors to produce richer insights. All of the benefits are an add-on to the BigQuery features such as separation of compute and storage, petabyte-scale serverless data warehouse, and tighter integration with several Google Cloud products.

The below diagram shows a view of SoundCommerce sharing datasets with one of its customers:

1. A SoundCommerce GCP project that hosts the BigQuery instance contains one or more Source Datasets that are composed into a Shared Dataset for a specific customer. The dataset is wrapped around Materialized views but can include other BigQuery objects such as Tables, Views, Authorized views and datasets, BigQuery ML models, external Tables, etc.
2. The same SoundCommerce GCP project contains the data exchange that acts as a container regarding the shared datasets. The exchange is made private to securely share the curated dataset relevant to the customer. The shared dataset is published into the data exchange as a private listing. The listing inherits the security permissions that are configured on the exchange.
3. SoundCommerce shares a direct link to the Exchange to the Customer, which they can add as a Linked dataset into their project in their Google Cloud Organization. The shareable link can be pointed to a private listing. From here on, the dataset is visible in the Customer project like any other dataset and immediately available to accept queries and return results. Alternatively, the customer can also view the listing in their own project under Analytics Hub and subscribe to it by adding it as a linked dataset.

SoundCommerce is incrementally onboarding customers to use Analytics Hub for all data sharing use cases. This enables brands to get business insights faster and gain an understanding of their profitable growth quickly. Plus, it gives them the ownership to own their own data and manage it how they see fit for their business. From a technical standpoint, the adoption of Analytics Hub has led to leveraging an inherent capability in BigQuery for data sharing, faster scaling, and reducing operational overhead to onboard customers.

The Built with BigQuery advantage for ISVs

Through Built with BigQuery launched in April as part of the Google Data Cloud Summit, Google is helping tech companies like SoundCommerce build innovative applications on Google’s data cloud with simplified access to technology, helpful and dedicated engineering support, and joint go-to-market programs. Participating companies can:

• Get started fast with a Google-funded, pre-configured sandbox.
• Accelerate product design and architecture through access to designated experts from the ISV Center of Excellence who can provide insight into key use cases, architectural patterns, and best practices.
• Amplify success with joint marketing programs to drive awareness, generate demand, and increase adoption.

BigQuery gives ISVs the advantage of a powerful, highly scalable data warehouse that’s integrated with Google Cloud’s open, secure, sustainable platform. And with a huge partner ecosystem and support for multi-cloud, open source tools, and APIs, Google provides technology companies the portability and extensibility they need to avoid data lock-in.

Click here to learn more about Built with BigQuery.

We thank the many Google Cloud team members including Yemi Falokun in Partner Engineering who contributed to close collaboration with the SoundCommerce team.

AI, deep learning, and image recognition is transforming the shopping experience. These technologies enable consumers to use product images or screenshots rather than text to search for similar products. This improves the customer experience and enables retailers with online and offline outlets to provide a genuine omnichannel experience.

The lack of complexity and the ease of use of BigQuery has enabled ViSenze to reduce its data infrastructure and management costs by 30%–50%, and scale up without incurring downtime.

—Renjie Yao, Data Platform Lead, ViSenze

Visual commerce provider ViSenze is helping some of the world’s leading retailers improve conversion rates through image-based search.

The business’s products also enable media companies to use the platform to turn images and videos into engagement opportunities—driving new and incremental revenues.

Created through NExT—a research center established by the National University of Singapore and Tsinghua University of China—ViSenze now operates in the United States, United Kingdom, India, China, and Singapore. The business is backed by Japan-based internet and ecommerce company Rakuten and cross-border investment specialist WI Harper Group.

Growth in SMB and Mobiles

Renjie Yao, Data Platform Lead at ViSenze, sees opportunities for growth in the small-to-medium business sector, where companies do not have the resources to build similar technologies, and with mobile device OEMs to integrate ViSenze natively on smartphones.

Phone owners can activate a “shopping lens” on camera and gallery apps to capture an image of a product. They then receive matching results from more than 800 partner merchants and retailers and can then click through to product pages on partner apps or mobile websites. Alternatively, they may use a photo to compare products sold on different sites or shop matching styles.

“Our research found Google Cloud provided a complete, integrated ecosystem rather than a disparate collection of tools and components, and so was ideal for our needs.”

—Renjie Yao, Data Platform Lead, ViSenze

The ViSenze API analyzes the contents of a selected or clicked image and sends the information back to the organization’s visual commerce platform. The platform feeds back similar results based on that information.

The ViSenze offering also extends to image analysis for the tagging of product attributes—such as a white turtleneck cardigan with full sleeves—to provide an improved search experience.

Data Vital to ViSenze

Capturing and analyzing large volumes of data is integral to ViSenze. “We have to understand how consumers interact with our customers’ ecommerce websites and apps,” says Yao. “For example, we need to know who has looked at a particular pair of jeans on a website and whether that visit led to a conversion. We can then tell that customer whether they need to make more stock available.”

ViSenze also relies on data to provide high-quality training for its image recognition models and its domain-specific models for online retail.

Protect Customer Data

Data is vital to ViSenze—but customer privacy is most important. “All the data we collect is transparent to our customers, meaning they can decide what they do not want us to collect. In addition, all personal data processing complies with privacy protection regulations in each region, such as the General Data Protection Regulation in Europe.”

A Quick Move to the Cloud

ViSenze started operations using servers, storage, networking, and associated systems in an on-premises data center operated by NExT.

However, to support rapid growth, the business decided to move its workloads to the cloud. ViSenze opted for a multi-cloud architecture, using in part a Google Cloud data infrastructure.

“Our research found Google Cloud provided a complete, integrated ecosystem rather than a disparate collection of tools and components, and so was ideal for our needs,” says Yao. “We could connect different components with the click of a mouse.” Further, the business found it could easily configure rules and pipelines to route data logs to relevant Google Cloud services.

The review found Google Cloud’s extensive managed services would also remove administration and maintenance tasks from ViSenze’s in-house technology team—freeing team members to focus on more valuable tasks.

In addition, Google Cloud provided the security features—including custom hardware running hardened operating systems and file systems and encryption of data at rest and in transit—needed to protect sensitive information. Finally, the location of Google Cloud regions in several countries would enable the business to meet regulatory and data sovereignty requirements.

A Three-Month Implementation

ViSenze opted to move to Google Cloud in mid-2017 and completed a three-month implementation using internal resources. “The process was very smooth and intuitive, and we had no problems building our entire data platform within Google Cloud,” says Yao.

The business now uses an architecture comprising Google Kubernetes Engine to manage and orchestrate Docker containers running in Google Cloud Platform; BigQuery to provide an analytics data warehouse, with Google Data Studio providing customizable visualization and reports; Stackdriver to monitor and manage virtual machine instances and services inside Google Cloud; Cloud SQL to manage its relational databases for real-time analytics; Compute Engine to provide compute resources; Cloud Storage to store files and objects; Cloud Pub/Sub to provide real-time messaging between applications; and Cloud Functions to build event-driven applications.

After collecting the request logs of users in virtual machine instances and Docker containers, ViSenze distributes them in three directions. “We export raw logs into Cloud Pub/Sub for indexing inside an Elasticsearch search engine, and to a BigQuery data warehouse for further analytics,” explains Yao. “We also use Cloud Functions-created applications to obtain the logs from Cloud Pub/Sub to perform some real-time calculations.”

“We are currently using Airflow workflow management on Compute Engine as our hosted ETL platform, but are likely to move to Cloud Composer in future.”

500 Million Records Per Day

With Google Cloud providing its data infrastructure, ViSenze is well positioned to meet internal and customer demands for more granular insights. The business is now processing 500 million records per day through BigQuery and saves up to one year’s aggregated data—excluding any personal data—in the data warehouse for analysis.

The nature of ViSenze’s business means most reports are generated for data processed on an hourly, daily, or monthly basis. “BigQuery is extremely stable and performance optimized, regardless of the volume of data it processes,” says Yao. “Across BigQuery and other Google Cloud Platform services, we’ve recorded 99.99% availability over the past year.”

The lack of complexity and the ease of use of BigQuery has enabled ViSenze to reduce its data infrastructure and management costs by 30%–50%, and scale up without incurring downtime.

“With BigQuery, we have saved the equivalent of two full-time engineers and now need only half of one person’s time to maintain our whole data platform,” says Yao.

“In addition, BigQuery integrates closely with Data Studio, enabling non-technical people in our product and business teams to create dynamic, detailed analysis dashboards. We now use Data Studio to create nearly 50 separate reports.”

The business has now grown to offer access to more than 1 billion users and a listing of more than 400 million purchasable products.

Next Steps

ViSenze is now researching the potential of the Cloud AutoML suite of machine learning products to improve the training of its models and run a fully managed NoSQL database through Cloud Datastore.

“A NoSQL database service is the only missing piece of our architecture for now, and using Cloud Datastore would enable us to focus almost exclusively on our business,” says Yao. “With Google Cloud Platform, we are ideally positioned to continue providing support to our business team and help them continue expanding into new markets.

“In addition, we can help retailers and consumers to unlock the potential of the web and apps to transform the purchasing experience.”

Many of today’s games are rich, immersive worlds that engage the audience in ways that make a gamer a part of a continuing storyline. To create these persistent experiences, numerous storage technologies are required to ensure game data can scale to the standards of gamers’ demands. Not only do game developers need to store different types of data—such as saves, inventory, patches, replays, and more—but they also must keep the storage system high-performing, available, scalable, and cost-effective.

Enter Open Saves, a brand-new, purpose-built single interface for multiple storage back ends that’s powered by Google Cloud and developed in partnership with 2K. Now, development teams can store game data without having to make the technical decisions on which storage solution to use, whether that’s Cloud Storage, Memorystore, or Firestore. 

“Open Saves demonstrates our commitment to partnering with top developers on gaming solutions that require a combination of deep industry expertise and Google scale,” said Joe Garfola, Vice President of IT and Security at 2K. “We look forward to continued collaboration with Google Cloud.”

Game development teams can save game data against Open Saves without having to worry about the optimal back-end storage solution, while operations teams can focus on needed scalability and storage options. Here’s how it looks in practice:

With Open Saves, game developers can run a cloud-native game storage system that is:

• Simple: Open Saves provides a unified, well-defined gRPC endpoint for all operations for metadata, structured, and unstructured objects.
• Fast: With a built-in caching system, Open Saves optimizes data placements based on access frequency and data size, all to achieve both low latency for smaller binary objects and high throughput for big objects.
• Scalable: The Open Saves API server can run on either Google Kubernetes Engine or Cloud Run. Both platforms can scale out to handle hundreds of thousands of requests per second. Open Saves also stores data in Firestore and Cloud Storage, and can handle hundreds of gigabytes of data and up to millions of requests per second.

Open Saves is designed with extensibility in mind, and can be integrated into any game—whether mobile or console, multiplayer or single player—running on any infrastructure, from on-prem to cloud or a hybrid. The server is written in Go, but you can use many programming languages and connect from client or server since the API is defined in gRPC.

Writing to and reading from Open Saves is as simple as the following code:

  // To write
	record := &pb.Record{
		Key:      uuid.New().String(),
		Tags:     []string{"tag1", "tag2"},
		OwnerId:  "owner",
	}
	createReq := &pb.CreateRecordRequest{
		StoreKey: storeKey,
		Record:   record,
	}
	_, err := client.CreateRecord(ctx, createReq)
	if err != nil {
		t.Fatalf("CreateRecord failed: %v", err)
	}
	// To read
	getReq := &pb.GetRecordRequest{StoreKey: storeKey, Key: recordKey}
	response, err := client.GetRecord(ctx, getReq)
	if err != nil {
		t.Errorf("GetRecord failed: %v", err)
	}

We are actively developing Open Saves in partnership with 2K Games, and would love for you to come join us on GitHub. There are a few ways to get involved:

• Install and deploy your Open Saves service
• Check out the API reference
• Read the development guide and start contributing
• Join the open-saves-discuss mailing list

As Google Cloud has become a choice for more startups, I’ve experienced an increase in founders asking how they should think about cloud services. Though each startup is different and requirements may vary across industries and regions, I’ve seen a few core best practices that help startups to succeed—as well as several traps to avoid. 

For example, If you go with a public cloud provider, you’re ideally not starting from ground zero like you would running your own data center, but it’s important not to introduce similar complexity in a virtualized environment. Just because you’re using public cloud infrastructure doesn’t mean you want to manage it.

Instead, you want to leverage platforms that abstract away complexity so your team can focus on delivering value to customers. That’s where serverless comes in. Serverless platforms are fully managed by the provider, offering automatic scaling for workloads, as well as provisioning, configuring, patching, and management of servers and clusters. Freed from these resource-intensive tasks, your technical talent can focus on the things that differentiate your business, not on IT curation. 

This applies to not only running stateless applications, but also managing and analyzing data. You should be collecting data points about which features are most popular on your platform, what people are buying, the types of activities that help your customers get their jobs done, and so on. This information is essential to building and executing on a product roadmap that will serve your customers. However, it’s not enough to collect this data, you need to make your data accessible, secure, and easy for your team to analyze—so where do you run and host it? 

On Google Cloud, this is where options like Spanner and Cloud SQL can play a large role, as can BigQuery for analysis. You won’t have to worry about standing up infrastructure or patching servers—you can just stream your data to our data management platforms, where it’s available whenever someone needs to run a query. By leveraging a serverless architecture, your startup can be data-driven without having to invest in the traditional complexity of database administration and management—and that can significantly change your playing field. 

Serverless is just one of the factors you should consider as you build out your tech stack. To hear my thoughts on a range of other topics relevant to startups — such as security, cloud credits, and the differences among managed services — check out the below video or visit our Build and Grow page.

https://www.youtube.com/embed/gn4RjLbs8Hc?enablejsapi=1&