The Future of Retail: Automated Customer Journeys Powered by Technology
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Editor’s note: To kick off the new year and in preparation for NRF The Big Show, we invited partners from across our retail ecosystem to share stories, best practices, and tips and tricks on how they are helping retailers transform during a time that continues to see tremendous change. Please enjoy this entry from our partner.
If you put a pot of water on the stove, it doesn’t heat up instantly. It simmers slowly at first, eventually picking up steam to reach a rolling boil. The retail landscape is not so different. Capgemini’s research shows the sector has evolved over four generations, from the early days of fragmented outlets to omnichannel and customer-centric focuses, with a fifth generation on the horizon that promises to be centered on consumption.
- Generation 1: Fragmented outlets
- Generation 2: Chain concentration
- Generation 3: Omnichannel
- Generation 4: Consumer-centric
- Generation 5: Consumption-centric
Although incremental change allows companies to experiment and iterate during their digital journeys, the COVID-19 pandemic rapidly accelerated the evolution of online and contactless shopping. Evolution became a revolution, with most Consumer Product and Retail (CPR) companies still mastering the omnichannel generation of their digital transformation to create a seamless shopping experience. Companies that are more digitally mature are already aspiring to the consumer-centric phase, embracing opportunities made possible by technology such as personalization and automation.
What consumers want
Customers have more choices in how they shop and engage with brands. This has made it harder for brands to predict and anticipate needs across customer journeys. And that’s convincing some companies to innovate more quickly as consumer demand drives the need for speed and scale.
Think about your own online behavior. Say you’re shopping for an item and searching online for the closest store in your neighborhood. Google is likely your go-to for finding that information. Looking to troubleshoot an issue with a product or seek out a service? Again, you’ll likely hit up Google first, not even considering going directly to a brand’s website for answers.
Both scenarios point to a disconnect between virtual and physical worlds, a gap technology can bridge in numerous ways such as breaking down silos and integrating fragmented media channels. Interestingly, though, not everything will be centered online all the time. In our recent study on consumer behavior, The great consumer reset, Capgemini discovered 57 percent of shoppers plan to return to brick-and-mortar stores post-pandemic, which is basically unchanged from the 59 percent who often interacted with physical stores before.
But business as usual? Not even close. Consumers have come to expect a frictionless shopping experience (buy online, pick up in store) or an immersive one (products displayed online using augmented reality), and are not content to return to in-store lineups, empty shelves, or a one-size-fits-all approach. Moreover, customers want personalized interactions while ensuring their data and privacy are protected.
So the role of the store is changing. In fact, many online-only brands are opening brick-and-mortar establishments to drive customer experience. In our research on “smart stores,” we found the majority of consumers (66 percent) believe automation can improve their shopping experience by solving the challenges they face at retail stores.
From personalization to serendipity
Retailers must recognize that they have to win consumer trust and confidence. Many consumers believe retailers’ use of tech is focused on reducing costs rather than easing friction. And they’re right. That same Capgemini research found that only one-third (35 percent) of retailers consider “solving customer pain points” as the most important criteria when deciding which automation use cases to implement.
“Retailers are largely in the early stages of adopting automation, and that’s an opportunity to rethink how they’re using technology, not just to smooth out friction and engender consumer trust but to build unexpected consumer benefits,” says Neerav Vyas, Head of Customer First, Co-Chief Innovation Officer, Insights & Data, North America, Capgemini. “We’re trying to move towards this idea of delivering serendipitous experiences to bridge the physical and digital divide.”
The focus is not solely on shoppers seeking out a specific product. “When consumers are in an exploratory mood, retailers can recommend products and services customers didn’t even know they wanted,” says Vyas. For example, business teams that use personalization platforms as part of an integrated media strategy can optimize algorithms against outcomes such as improving conversion and driving engagement.
Vyas says the elevated experience from “personalization to serendipity” fosters trust in the ability of recommendation architectures to persuade and influence consumers’ choices in beneficial ways. A case in point: our research found that half (52 percent) of spending by millennials goes towards experience-related purchases. As always, the key is to meet consumers where they are. Even better, according to Vyas, is to anticipate and understand when signals like customer intent are changing.
How to create value throughout the customer journey
One solution companies can implement right now is an integrated media spend platform that incorporates reporting, planning, and strategy across the entire customer journey. This offers value throughout the customer journey by using technology to reduce friction along the way. Think of it as starting with the customer looking for a product (search and discovery), moving on to the purchase (omnichannel basket, “shoppable” screens) and pick up/delivery (QR code scan in store), and through to post-purchase engagement with the retailer (Google Contact Center AI).
Such a holistic approach also accelerates data acquisition, integration, and reporting using advanced analytics to break down silos and emphasize the importance of privacy and first-party data. This in turn guides end-to-end interventions across customer journeys that enable optimized media spend, empowers businesses to analyze their spend distribution, fine-tunes owned and paid tactics with agencies, and promotes stewardship to support audit efficacy.
A culture of experimentation
With this data-driven focus, CPRs can create a 360-degree perspective of the customer. That intelligence can be used to enhance and humanize automated shopping experiences by putting the customer in control, whether online, in store, or across company brands. Moreover, by using Google Cloud’s emerging technologies such as artificial intelligence (AI), we help companies accelerate value across the spectrum, from supply-chain optimization and customer innovation to consumer experience.
Building a culture of experimentation is a team effort. “It’s not ever just one person who had a big idea. It’s all incremental steps,” says Jennifer Marchand, Google Cloud COE Leader, Capgemini. “Finding the right use case and timing is everything.” Take Google Glass Enterprise, she continues. For greater consumer experience, it can enable in-store associates to better serve with hands-free checkout, customer personalization and recommendations, and special offers. At the same time, Computer Vision and Smart Shelves can help prioritize tasks for employees, notifying them of low stock or a spill in the store.
Marchand points out that companies and consumers alike might not be ready to fully adopt some technology like facial recognition, but since almost everyone has a smartphone these days, they can benefit from automation with ease. “What’s interesting,” she adds, “is the way Google thinks about these types of problems, solving them for the long term.”
The store of tomorrow
Imagine a truly frictionless shopping experience, where state-of-the-art computer vision and AI identifies the products you pick up, put back, and keep, allowing you to head home, completely bypassing the checkout, with a 99 percent accuracy rate and receipts sent directly to your mobile app. That utopian experience is already taking shape at CornerShop, Capgemini’s live experimental store in London, UK.
Jamie MacLoud, Transformation & Strategy Consultant at frog, part of Capgemini, describes the retail space, which runs on Google Cloud, as the store of tomorrow, and not the distant future. It’s an experiential space where retailers and brands can explore, develop, and test technological shopping innovations in real-time. The outcome is a clearer understanding of how digital innovation can enable new ways to progress the customer experience, improve in-store operations, and help consumers to rediscover the joy of in-person retail through new ways to shop and engage with brands.
“We build, test, and learn about store concepts of tomorrow that we believe could be implemented into actual stores in the next one to two years. Getting these experiences in front of real customers in the CornerShop allows us to generate tangible learnings that we can share with our clients and use to shape future store strategy” says MacLeod. CornerShop was opened to the public in two eight-week stints, which allowed real-time testing to see what technologies resonated with customers, which brands can adapt and scale. Frictionless checkout, not surprisingly, was a big win for customers, but the technology underpinning the “virtual try-on” of clothing was deemed more suitable for the store of the future.
So, unlike an innovation lab, CornerShop lets companies experiment risk free, speeding up the process from hypothesis to full-scale implementation. It’s also another step toward solving the challenges customers face, while delivering those serendipitous experiences that build brand loyalty and longevity.
Learn more about how Capgemini is partnering with Google Cloud to help retailers create next-generation shopping experiences today.
We would like to acknowledge Jamie MacLoud, Transformation & Strategy Consultant at frog, part of Capgemini and Neerav Vyas, Head of Customer First, Co-Chief Innovation Officer, Insights & Data, North America at Capgemini who supported with invaluable insights and subject matter expertise in the writing of this blog post.
This Chart, from Home Depot, Dramatically Demonstrates the Power of a Cloud Data Warehouse
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The Home Depot (THD) is the world’s largest home-improvement chain, growing to more than 2,200 stores and 700,000 products in four decades. Much of that success was driven through the analysis of data. This included developing sales forecasts, replenishing inventory through the supply chain network, and providing timely performance scorecards.
However, to compete in today’s business world, THD has taken this data-driven approach to an entirely new level of success on Google Cloud, providing capabilities not practical on legacy technologies.
The pressures of contemporary growth that drove much of the work are familiar to many businesses. In addition to everything it was doing, THD needed to better integrate the complexities in its related businesses, like tool rental and home services. It needed to better empower teams, including a fast-growing data analysis staff and store associates with mobile computing devices. It wanted to better use online commerce and artificial intelligence to meet customer needs, while maintaining better security.
Even before addressing these new challenges, THD’s existing on-premises data warehouse was under stress as more data was required for analytics and data analysts were utilizing the data with increasingly complex use cases. This drove rapid growth of the data warehouse, but also created constant challenges for the team in managing priorities, performance, and cost.
In order to add capacity to the environment, it was a major planning, architecture, and testing effort. In one case, adding on-premises capacity took six months of planning and a three-day service outage. Within a year, capacity was again scarce, impacting performance and ability to execute all the reporting and analytics workloads required. The capacity refresh cycles were shrinking, and the expecations for data were growing. There had to be a better way.
Still, THD did not take its move to the cloud lightly. A large-scale enterprise data warehouse migration involves tremendous effort among people, process, and technology. After careful consideration, THD chose Google Cloud’s BigQuery for its cloud enterprise data warehouse.
BigQuery, a scalable serverless data warehouse, was better on cost, infrastructure agility, and analytics capability, driving better insights with improved performance. There are no service interruptions when capacity is added, and that capacity can be added within a week (and soon same day). It doesn’t require complex system administration, and its standard SQL support means people can easily ramp up quickly. Valuable BigQuery products like Identity and Access Management meant THD could create many separate Google Cloud projects, while ensuring that different teams weren’t interfering with each other or accessing protected data.
THD also utilizes BigQuery’s flat-rate monthly pricing model that allows teams to budget their capacity based on need and provides billing predictability. The capacity not being used by a given project is available for enterprise use. This ensures no surprises when the monthly bill arrives and provides all analytical users access to significant computing power.
While THD’s legacy data warehouse contained 450 terabytes of data, the BigQuery enterprise data warehouse has over 15 petabytes. That means better decision-making by utilizing new datasets like website clickstream data and by analyzing additional years of data.
As for performance, look at this chart:
With the cloud EDW migration complete, and the legacy on-premises data warehouse retired, analysts now execute more complex and demanding workloads that they would not have been able to complete before, such as utilizing Datalab for orchestrating analytics through Python Notebooks, utilizing BigQuery ML for machine learning directly against the BigQuery data (no movement of large datasets), and AutoML to help determine the best model for predictions.
Additionally, engineers at THD have adapted BigQuery to monitor, analyze, and act on application performance data across all its stores and warehouses in real time, something that was not practical in the on-premises system.
With over 600 projects that THD now has on Google Cloud, the BigQuery story is just one of the many ways that Google Cloud is working with THD to deliver meaningful business results, every day.
Google Cloud VMware Engine Achieves HIPAA Compliance
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We are excited to announce that as of April 1, 2021, Google Cloud VMware Engine is covered under the Google Cloud Business Associate Agreement (BAA), meaning it has achieved HIPAA compliance. Healthcare organizations can now migrate and run their HIPAA-compliant VMware workloads in a fully compatible VMware Cloud Verified stack running natively in Google Cloud with Google Cloud VMware Engine, without changes or re-architecture to tools, processes, or applications.
Healthcare organizations increasingly use cloud platforms to personalize patient care, analyze large datasets more effectively, enhance research and development collaboration, and share medical knowledge. Leveraging cloud platforms can also help healthcare organizations increase the privacy and security of information systems, including protected health information (PHI), and, as a result, better comply with applicable laws and regulations while reducing the burden of compliance. For PHI, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) set standards in the United States to protect individually identifiable health information. HIPAA applies to health plans, most healthcare providers, and healthcare clearinghouses that manage PHI electronically, and to persons or entities that perform certain functions on their behalf.
With Google Cloud, organizations can leverage solutions that enable secure, continuous patient care and data-driven clinical and operational decisions with ease, while being empowered with collaboration and productivity tools. Further, Google Cloud Platform supports HIPAA compliance. We offer HIPAA-regulated customers the same products at the same pricing that is available to all customers, unlike many other cloud providers.
For healthcare organizations that leverage VMware on-premises, having a consistent, cloud-integrated platform that provides seamless access to native cloud services unlocks the opportunity to extend, migrate, and modernize healthcare IT infrastructure and applications in a fast, low-risk manner at their own pace. This is especially important for mission-critical healthcare provider workloads, where having a low-risk way to adopt the cloud is important. Google Cloud VMware Engine offers that solution. By achieving coverage under Google Cloud’s BAA, Google Cloud VMware Engine enables healthcare organizations to realize the benefits of cloud computing and stay on track with their HIPAA compliance efforts without additional complexity. This is very relevant in hybrid scenarios, where customers would like to leverage other native cloud services such as analytics and big data processing, without having to enter into multiple BAAs.
Google Cloud VMware Engine offers dedicated, isolated software-defined datacenter environments with fully redundant and dedicated 100 Gbps networking that are suitable for healthcare organizations to run applications storing and processing PHI data. Customers have the ability to encrypt their virtual storage area network (vSAN) using an external key management server. Healthcare customers can run their workloads in a native VMware environment—vSphere, vCenter, vSAN, NSX-T, and HCX—while benefiting from Google Cloud’s highly performant infrastructure to meet the needs of their workloads. Customers can connect their VMware applications to native Google Cloud services such as BigQuery and artificial intelligence (AI) to derive new insights from existing data and quickly make informed decisions.
Protecting against and mitigating the impact of ransomware attacks is top-of-mind for Healthcare organizations. This requires building a cyber resilience program and back-up strategy to prepare for how users can restore core systems or assets affected by a security (in this case, ransomware) incident. This is a critical function for supporting recovery timelines and lessening the impact of a cyber event so organizations can get back to operating their business. Google Cloud VMware Engine in combination with Google Cloud first party solutions such as Actifio Go, or partner solutions such as NetApp CVO can provide an efficient way to recover incremental point-in-time backups along with on-demand provisioning of new compute to recover both data and infrastructure from Ransomware attacks quickly and efficiently.
Healthcare customers can also use Google Cloud VMware Engine as a disaster recovery (DR) target for their on-premises VMware workloads. Healthcare organizations also need a business continuity plan for their mission critical applications. When a disaster occurs, hospitals need their data protected so they can quickly get back to treating patients. It is a HIPAA requirement that healthcare organizations must be able to recover from a natural disaster. Google Cloud VMware Engine offers a like-for-like cost-effective DR target for these customers. The DR environment can be operated without new training using the same tools as their on-premises deployment. Google Cloud VMware Engine is currently available in 12 regions across the globe including three regions in the US, which means our regional and multi-national customers can take advantage of this service for geographic diversification as well.
If you are interested in understanding more and taking advantage of Google Cloud VMware Engine, contact your Google sales team now.
For details, see HIPAA compliance on Google Cloud Platform.
Google Cloud Announces General Availability of BigQuery Row-level Security
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Data security is an ongoing concern for anyone managing a data warehouse. Organizations need to control access to data, down to the granular level, for secure access to data both internally and externally. With the complexity of data platforms increasing day by day, it’s become even more critical to identify and monitor access to sensitive data. In many cases, sensitive data is co-mingled with non-sensitive data, and access restrictions to sensitive data need to be enabled based on factors like data location or presence of financial information. There may also be nuances where data is sensitive for some groups of users, while for others, it is not.
Today, we’re pleased to announce the general availability of BigQuery row-level security, which gives customers a way to control access to subsets of data in the same table for different groups of users. Row-level security (RLS) extends the principle of least privilege access and enables fine-grained access control policies in BigQuery tables. BigQuery currently supports access controls at the project-, dataset-, table- and column-level. Adding RLS to the portfolio of access controls now enables customers to filter and define access to specific rows in a table based on qualifying user conditions—providing much needed peace of mind for data professionals.
“Our digital transformation and migration of data to the cloud magnifies the business value we can extract from our information assets. However, granular data access control is essential to comply with international regulatory and contractual requirements. BigQuery row-level security helps us comply with data residency and export restrictions,” says Jarrett Garcia, Iron Mountain’s Enterprise Data Platform Senior Director. “It enables us to manage fine-grained access controls without replicating data. What used to take months for approval and access provisioning can now be done more efficiently and effectively. We are looking forward to implementing additional data security capabilities on the BigQuery roadmap to address other critical business use cases.”
How BigQuery row-level security works
Row-level security in BigQuery enables different user personas access to subsets of data in the same table. Customers who are currently using authorized views to enable these use cases can leverage RLS for ease of management. To express the concept of RLS, we have introduced a new entity in BigQuery called row access policy. Row access policies map a group of user principals to the rows that they can see, defined by a SQL filter predicate.
Secure logic rules created by data owners and administrators determines which user can see which rows through the creation of a row-level access policy. The row-level access policies created on a target table by administrators or data owners are applied when a query is run on the table. One table can have multiple policies applied to it.
Below is an example, where row-level access policies have been created to filter data based on users’ “region”.
In the illustrated scenario above, row-level access policies have been created to verify a querying user’s region and to give them access only to the subset of data relevant to that region. Access policies are granted to a grantee list which support all types of IAM principles such as individual users, groups, domains or service accounts. In this example, when a user queries the table, row-level access policies are evaluated to assess which, if any, policies are applicable to that user. The group ‘sales-apac’ is granted access to view a subset of rows where region = ‘APAC’ whereas the group ‘sales-us’ is granted access to view a subset of rows where the region = ’US’. Likewise, users in both groups will see rows in both regions, and users in neither group will not see any rows.
Row-level access policies can also be created using the SESSION_USER() function to restrict access only to rows that belong to the user running the query. If none of the row access policies are applicable to the querying user, the user will have no access to the data in the table.
When a user queries a table with a row-level access policy, BigQuery displays a banner notice indicating that their results may be filtered by a row-level access policy. This notice displays even if the user is a member of the `grantee_list`.
When to put BigQuery row-level security to work
Row-level access policies are useful when you have a need to limit access to data based on filter conditions. The row-access policies’ filter predicate supports arbitrary SQL, and is conceptually similar to the WHERE clause of a SQL query. Filter predicates support the SESSION_USER() function to restrict access only to rows that belong to the user running the query. If none of the row access policies are applicable to the querying user, the user will have no access to the data in the table. Currently, the column used for filtering must be in the table, but we anticipate adding support for subqueries in the filter expression, opening up access to use cases where data is filtered based on lookup tables and calculated values. Row-level access policies can be created, updated and dropped using DDL statements. You will be able to see the list of row-level access policies applied to a table using the BigQuery schema pane in the Cloud Console, which simplifies the management of policies per table, or by using the bq command-line tool.
Row-level security is compatible with other BigQuery security features, and can be used along with column-level security for further granularity. Since row-level access policies are applied on the source tables, any actions performed on the table will inherit the table’s associated access policies, to ensure access to secure data is protected. Row-level access policies are applicable to every method used to access BigQuery data (API, Views, etc).
Try it out
We’re always working to enhance BigQuery’s (and Google Cloud’s) data governance capabilities, to provide more controls around managing your data. With row-level security, we are adding deeper protections for your data. You can learn more about BigQuery row-level security in our documentation and best practices.
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Google Invests 1 Billion Euros on Germany to Support Growing Businesses
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In September 2001, the first-ever German Google employee switched on their computer in Hamburg. Since then, we’ve grown to more than 2,500 employees in four offices across Germany. Berlin, Frankfurt, Hamburg and Munich have long been our home, and we continue to invest in the growth of the local economy.
Today, 20 years after the start of “Google Germany”, we are pleased to present one of our most important investment programs to date in this country. With the expansion of our Cloud Region in Frankfurt in a new Google-owned Hanau facility, a new Google Cloud region in Berlin-Brandenburg, and a broad investment plan in renewable energy, our commitment is clear: Google is investing in Germany’s potential and supporting the transition to a digital and sustainable economy. Between now (2021) and 2030, this investment in digital infrastructure and clean energy will total approximately 1 billion euros.
Expanding our Frankfurt cloud region to support growing demand from German businesses and organizations
In Hanau, only 20 kilometers from the DE-CIX Internet hub in Frankfurt, Google is proud to be nearing completion of an additional cloud facility that will be fully operational in 2022. This expansion of our existing Frankfurt Google Cloud region will serve the growing demand for Google Cloud services in Germany.
The 4-story building is 10,000 square meters and was sustainably constructed with energy efficient infrastructure and adherence to our circular economy model for waste. The symbolic handover of the keys from developer NDC-Garbe, together with local government officials, took place on site yesterday.
A new cloud region in Berlin-Brandenburg
In addition to the Hanau expansion of our Google Cloud region in Frankfurt, we are pleased to announce that a new Google Cloud region will be located in Berlin-Brandenburg, further extending our ability to meet growing demand for cloud services in the country. When open, this will be our second Google Cloud region in Germany, providing enterprise customers with faster access to secure infrastructure, smart analytics tools and an open platform. Designed and dedicated to providing enterprise services and products for Google Cloud customers of all sizes and industries in Germany, the Berlin-Brandenburg region will have three zones to protect against service disruptions and join the existing network of 27 Google Cloud regions connected via our high-performance network.
One of the cleanest clouds in the industry becomes even cleaner
Since 2017, Google has matched 100% of our global, annual electricity use with renewable energy. Last year, we set out to run our business on carbon-free energy everywhere and at all times by 2030, enabling us to offer cloud customers one of the cleanest clouds in the industry, while helping Europe achieve its ambitious climate goals.
Today, we’re excited to announce that ENGIE Deutschland has been selected as Google’s carbon-free energy supplier in Germany. Under the terms of the agreement, ENGIE will assemble and develop, on Google’s behalf, a 140 megawatt (MW) carbon-free energy portfolio in Germany that has the ability to flex and grow with us as our needs change. This includes a new 39MW solar Photovoltaic system, and 22 wind parks in five federal states that will see their lives extended so they continue to produce electricity instead of being dismantled. This portfolio will ensure that the energy delivered to Google’s German facilities will be nearly 80% carbon-free by 2022 when measured on an hourly basis. This is a first but important step on Google’s journey to reach our goal of full electricity decarbonization by 2030.
This is the first energy supply of its kind in Europe, with a focus on sourcing carbon-free energy for every hour of Google’s operations. Not only will this new agreement draw the roadmap for the industry and more 24/7 carbon-free energy contracts in Europe, but it provides our cloud customers with two more regions where they can lower their carbon footprint. And importantly, by working with our energy suppliers to transform how clean energy is delivered to customers, Google is supporting the broader decarbonization of the German electricity grid.
What customers and partners are saying
As companies continue to grapple with changing customer demands, technology has played a critical role, and we’ve been fortunate to partner with and serve people, companies, and government institutions in Germany and around the world to help them adapt. The Google Cloud region in Berlin-Brandenburg and the expansion of our Google Cloud region in Hanau will help our customers — such as BMG, Delivery Hero, and Deutsche Bank — adapt to new requirements, new opportunities and new ways of working.
“We are very pleased about the symbolic handover of the keys to the building here in Hanau to Google Cloud,” said Hanau Mayor Claus Kaminsky. “With Google, we have a strong partner at our side who is supporting us in setting up Hanau’s economic future, both digitally and sustainably. The data center facility of Google Cloud embodies this transformation: We bring the cloud to us in Hanau and thus support the digital transformation of companies and public authorities. Not only in our city and Hesse, but throughout Germany and Europe. The new building meets high sustainability standards and the clean energy initiative presented today by Google is in line with our aspirations for sustainable digitalization.”
“Sustainability is a central pillar of Deutsche Bank’s strategy and we have made strong public commitments to be part of the solution,” said Bernd Leukert, Chief Technology, Data and Innovation Officer and Member of the Management Board at Deutsche Bank. “We welcome the new Google Cloud region in Germany, which will enable us to deliver additional resilience and performance for our German client base.”
Ralf Bernhard, Senior Originator Renewables, ENGIE, said: “ENGIE is excited to collaborate with Google based on a first-of-a-kind agreement which will support the company with its sustainability goals and ambitious carbon-free energy target. Thanks to our expertise in energy and risk management, we can seamlessly integrate renewable energy from existing plants and develop new assets to design a tailor made product that meets Google’s needs and plans to go even greener.”
20 years since Google first touched down in Germany, our commitment to helping Germany continue to lead in technical innovation is stronger than ever. We are excited to continue working with our partners in Hesse, Berlin and Brandenburg and across Germany to advance infrastructure and clean energy projects, help accelerate digital transformation, and secure a sustainable future for German and European companies and organizations.
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