The Real Drivers of Efficiency, Growth, and Customer Experience

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The increasing adoption of technologies like connected devices, augmented reality, and machine learning has changed the way we shop, and retailers are evolving how they do business to meet the needs of their customers.
Retailers say it’s no longer enough to keep pace with shoppers’ growing expectations—they must get ahead of them. That’s why more and more are turning to the cloud. They’re using it to eliminate data silos and take advantage of cloud-based analytics. They’re tapping into machine learning to improve all aspects of the value chain. And they’re making use of reliable and secure cloud infrastructure to scale their businesses.
Although every retail customer is different, many of them share similar objectives. Here are three major ways retailers take advantage of the cloud.
Storing and Analyzing Data in the Cloud
Data presents both a challenge and an opportunity for retailers. Which is why Ulta Beauty, the largest beauty retailer in the US, is moving to Google Cloud Platform (GCP). Now, with the help of BigQuery, Ulta Beauty will be able to more efficiently predict and analyze outcomes and develop more meaningful data insights that can be leveraged to deliver a more personalized, relevant guest journey.
They are not alone. DSW has also chosen to use GCP to help relaunch their DSW VIP loyalty program for the first time in over 10 years. With more than 90% of transactions running through their loyalty program, DSW needed a flexible and scalable solution to deliver a real-time loyalty program for 26 million active members. They’ve already seen a 9% uptick in new customers and have improved their already strong retention rate.
Improving Customer Experiences with AI and Machine Learning
Once retailers are able to access these insights, they are turning to AI to help personalize the overall shopping experience. At first, retail companies leveraged AI tools such as machine learning for product recommendations.
Now, more retailers use AI to forecast trends, predict inventory needs and prevent
Just look at METRO AG, one of the largest B2B wholesalers globally. They’re using AI and machine learning to better serve their customers. For example, many of their customers are restaurant owners. With Google Cloud AI capabilities, they can create tools that identify when a restaurant is out of a particular ingredient and automatically order more.
Ocado is another great example. The world’s largest online-only grocery retailer drove a 3.5% increase in contact center efficiency by using Google Cloud machine learning technology to respond to customer emails four times faster.
To help businesses further accelerate their AI solutions, Google has developed the Advanced Solutions Lab (ASL), which gives businesses the opportunity to work side-by-side with Google’s AI and ML experts to solve high impact challenges.
Fast Retailing, the Japanese retailer behind Uniqlo, is working with Google Cloud and ASL to help them better analyze customer data to forecast demand and deeply understand what their customers want.
Carrefour, one of the world’s leading retailers, also announced last year that its engineers will be working side-by-side with our AI experts to co-create new consumer experiences. This is in addition to deploying G Suite to their employees to support the company’s digital transformation.
Scaling Infrastructure to Meet Demand
Of course, none of this innovation is possible without a reliable infrastructure that can scale instantly to meet surges in traffic.
And many have found the reliability and security they need with the cloud. That’s why global cosmetics brand Lush chose Google Cloud. They migrated their e-commerce platform to GCP to handle increased traffic without compromising stability.
This move that ultimately reduced infrastructure hosting costs by 40 percent.
L.L.Bean also modernized its IT infrastructure by moving capabilities from its on-premises systems to GCP, improving customer satisfaction and IT efficiency across multiple sales channels.
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Predict User Churn on Gaming Apps with Google Analytics Data using BigQuery ML
User retention can be a major challenge for mobile game developers. According to the Mobile Gaming Industry Analysis in 2019, most mobile games only see a 25% retention rate for users after the first day. To retain a larger percentage of users after their first use of an app, developers can take steps to motivate and incentivize certain users to return. But to do so, developers need to identify the propensity of any specific user returning after the first 24 hours.
In this blog post, we will discuss how you can use BigQuery ML to run propensity models on Google Analytics 4 data from your gaming app to determine the likelihood of specific users returning to your app.
You can also use the same end-to-end solution approach in other types of apps using Google Analytics for Firebase as well as apps and websites using Google Analytics 4. To try out the steps in this blogpost or to implement the solution for your own data, you can use this Jupyter Notebook.
Using this blog post and the accompanying Jupyter Notebook, you’ll learn how to:
- Explore the BigQuery export dataset for Google Analytics 4
- Prepare the training data using demographic and behavioural attributes
- Train propensity models using BigQuery ML
- Evaluate BigQuery ML models
- Make predictions using the BigQuery ML models
- Implement model insights in practical implementations
Google Analytics 4 (GA4) properties unify app and website measurement on a single platform and are now default in Google Analytics. Any business that wants to measure their website, app, or both, can use GA4 for a more complete view of how customers engage with their business. With the launch of Google Analytics 4, BigQuery export of Google Analytics data is now available to all users. If you are already using a Google Analytics 4 property, you can follow this guide to set up exporting your GA data to BigQuery.
Once you have set up the BigQuery export, you can explore the data in BigQuery. Google Analytics 4 uses an event-based measurement model. Each row in the data is an event with additional parameters and properties. The Schema for BigQuery Export can help you to understand the structure of the data.
In this blogpost, we use the public sample export data from an actual mobile game app called “Flood It!” (Android, iOS) to build a churn prediction model. But you can use data from your own app or website.
Here’s what the data looks like. Each row in the dataset is a unique event, which can contain nested fields for event parameters.
SELECT *FROM `firebase-public-project.analytics_153293282.events_*`TABLESAMPLE SYSTEM (1 PERCENT)

This dataset contains 5.7M events from over 15k users.
SELECTCOUNT(DISTINCT user_pseudo_id) as count_distinct_users,COUNT(event_timestamp) as count_eventsFROM`firebase-public-project.analytics_153293282.events_*

Our goal is to use BigQuery ML on the sample app dataset to predict propensity to user churn or not churn based on users’ demographics and activities within the first 24 hours of app installation.

In the following sections, we’ll cover how to:
- Pre-process the raw event data from GA4
- Identify users & the label feature
- Process demographic features
- Process behavioral features
- Train classification model using BigQuery ML
- Evaluate the model using BigQueryML
- Make predictions using BigQuery ML
- Utilize predictions for activation
Pre-process the raw event data
You cannot simply use raw event data to train a machine learning model as it would not be in the right shape and format to use as training data. So in this section, we’ll go through how to pre-process the raw data into an appropriate format to use as training data for classification models.
This is what the training data should look like for our use case at the end of this section:

Notice that in this training data, each row represents a unique user with a distinct user ID (user_pseudo_id).
Identify users & the label feature
We first filtered the dataset to remove users who were unlikely to return the app anyway. We defined these ‘bounced’ users as ones who spent less than 10 mins with the app. Then we labeled all remaining users:
- churned: No event data for the user after 24 hours of first engaging with the app.
- returned: The user has at least one event record after 24 hours of first engaging with the app.
For your use case, you can have a different definition of bounce and churning. Also you can even try to predict something else other than churning, e.g.:
- whether a user is likely to spend money on in-game currency
- likelihood of completing n-number of game levels
- likelihood of spending n amount of time in-game etc.
In such cases, label each record accordingly so that whatever you are trying to predict can be identified from the label column.
From our dataset, we found that ~41% users (5,557) bounced. However, from the remaining users (8,031), ~23% (1,883) churned after 24 hours:
SELECTbounced,churned,COUNT(churned) as count_usersFROMbqmlga4.returningusersGROUP BY 1,2ORDER BY bounced

To create these bounced and churned columns, we used the following snippet of SQL code.
...#churned = 1 if last_touch within 24 hr of app installation, else 0IF (user_last_engagement < TIMESTAMP_ADD(user_first_engagement,INTERVAL 24 HOUR),1,0 ) AS churned,#bounced = 1 if last_touch within 10 min, else 0IF (user_last_engagement <= TIMESTAMP_ADD(user_first_engagement,INTERVAL 10 MINUTE),1,0 ) AS bounced,...
You can view the Jupyter Notebook for the full query used for materializing the bounced and churned labels.
Process demographic features
Next, we added features both for demographic data and for behavioral data spanning across multiple columns. Having a combination of both demographic data and behavioral data helps to create a more predictive model.
We used the following fields for each user as demographic features:
geo.countrydevice.operating_systemdevice.language
A user might have multiple unique values in these fields — for example if a user uses the app from two different devices. To simplify, we used the values from the very first user engagement event.
CREATE OR REPLACE VIEW bqmlga4.user_demographics AS (WITH first_values AS (SELECTuser_pseudo_id,geo.country as country,device.operating_system as operating_system,device.language as language,ROW_NUMBER() OVER (PARTITION BY user_pseudo_id ORDER BY event_timestamp DESC) AS row_numFROM `firebase-public-project.analytics_153293282.events_*`WHERE event_name="user_engagement")SELECT * EXCEPT (row_num)FROM first_valuesWHERE row_num = 1 #first engagement);
Process behavioral features
There is additional demographic information present in the GA4 export dataset, e.g. app_info, device, event_params, geo etc. You may also send demographic information to Google Analytics through each hit via user_properties. Furthermore, if you have first-party data on your own system, you can join that with the GA4 export data based on user_ids.
To extract user behavior from the data, we looked into the user’s activities within the first 24 hours of first user engagement. In addition to the events automatically collected by Google Analytics, there are also the recommended events for games that can be explored to analyze user behavior. For our use case, to predict user churn, we counted the number of times the follow events were collected for a user within 24 hours of first user engagement:
user_engagementlevel_start_quickplaylevel_end_quickplaylevel_complete_quickplaylevel_reset_quickplaypost_scorespend_virtual_currencyad_rewardchallenge_a_friendcompleted_5_levelsuse_extra_steps
The following query shows how these features were calculated:
WITHevents_first24hr AS (SELECTe.*FROM`firebase-public-project.analytics_153293282.events_*` eJOINbqmlga4.returningusers rONe.user_pseudo_id = r.user_pseudo_idWHERETIMESTAMP_MICROS(e.event_timestamp) <= r.ts_24hr_after_first_engagement)SELECTuser_pseudo_id,SUM(IF(event_name = 'user_engagement', 1, 0)) AS cnt_user_engagement,# ... repeated for all behavior data ...SUM(IF(event_name = 'use_extra_steps', 1, 0)) AS cnt_use_extra_steps,FROMevents_first24hrGROUP BY1
View the notebook for the query used to aggregate and extract the behavioral data. You can use different sets of events for your use case. To view the complete list of events, use the following query:
SELECTevent_name,COUNT(event_name) as event_countFROM`firebase-public-project.analytics_153293282.events_*`GROUP BY 1ORDER BYevent_count DESC
After this we combined the features to ensure our training dataset reflects the intended structure. We had the following columns in our table:
- User ID:
user_pseudo_id
- Label:
churned
- Demographic features
countrydevice_osdevice_language
- Behavioral features
cnt_user_engagementcnt_level_start_quickplaycnt_level_end_quickplaycnt_level_complete_quickplaycnt_level_reset_quickplaycnt_post_scorecnt_spend_virtual_currencycnt_ad_rewardcnt_challenge_a_friendcnt_completed_5_levelscnt_use_extra_stepsuser_first_engagement
At this point, the dataset was ready to train the classification machine learning model in BigQuery ML. Once trained, the model will output a propensity score between churn (churned=1) or return (churned=0) indicating the probability of a user churning based on the training data.
Train classification model
When using the CREATE MODEL statement, BigQuery ML automatically splits the data between training and test. Thus the model can be evaluated immediately after training (see the documentation for more information).
For the ML model, we can choose among the following classification algorithms where each type has its own pros and cons:

Often logistic regression is used as a starting point because it is the fastest to train. The query below shows how we trained the logistic regression classification models in BigQuery ML.
CREATE OR REPLACE MODEL bqmlga4.churn_logregTRANSFORM(EXTRACT(MONTH from user_first_engagement) as month,EXTRACT(DAYOFYEAR from user_first_engagement) as julianday,EXTRACT(DAYOFWEEK from user_first_engagement) as dayofweek,EXTRACT(HOUR from user_first_engagement) as hour,* EXCEPT(user_first_engagement, user_pseudo_id))OPTIONS(MODEL_TYPE="LOGISTIC_REG",INPUT_LABEL_COLS=["churned"]) ASSELECT*FROMbqmlga4.train
We extracted month, julianday, and dayofweek from datetimes/timestamps as one simple example of additional feature preprocessing before training. Using TRANSFORM() in your CREATE MODEL query allows the model to remember the extracted values. Thus, when making predictions using the model later on, these values won’t have to be extracted again. View the notebook for the example queries to train other types of models (XGBoost, deep neural network, AutoML Tables).
Evaluate model
Once the model finished training, we ran ML.EVALUATE to generate precision, recall, accuracy and f1_score for the model:
SELECT*FROMML.EVALUATE(MODEL bqmlga4.churn_logreg)

The optional THRESHOLD parameter can be used to modify the default classification threshold of 0.5. For more information on these metrics, you can read through the definitions on precision and recall, accuracy, f1-score, log_loss and roc_auc. Comparing the resulting evaluation metrics can help to decide among multiple models.Furthermore, we used a confusion matrix to inspect how well the model predicted the labels, compared to the actual labels. The confusion matrix is created using the default threshold of 0.5, which you may want to adjust to optimize for recall, precision, or a balance (more information here).
SELECTexpected_label,_0 AS predicted_0,_1 AS predicted_1FROMML.CONFUSION_MATRIX(MODEL bqmlga4.churn_logreg)

This table can be interpreted in the following way:

Make predictions using BigQuery ML
Once the ideal model was available, we ran ML.PREDICT to make predictions. For propensity modeling, the most important output is the probability of a behavior occurring. The following query returns the probability that the user will return after 24 hrs. The higher the probability and closer it is to 1, the more likely the user is predicted to return, and the closer it is to 0, the more likely the user is predicted to churn.
SELECTuser_pseudo_id,returned,predicted_returned,predicted_returned_probs[OFFSET(0)].prob as probability_returnedFROMML.PREDICT(MODEL bqmlga4.churn_logreg,(SELECT * FROM bqmlga4.train)) #can be replaced with a proper test dataset
Utilize predictions for activation
Once the model predictions are available for your users, you can activate this insight in different ways. In our analysis, we used user_pseudo_id as the user identifier. However, ideally, your app should send back the user_id from your app to Google Analytics. In addition to using first-party data for model predictions, this will also let you join back the predictions from the model into your own data.
- You can import the model predictions back into Google Analytics as a user attribute. This can be done using the Data Import feature for Google Analytics 4. Based on the prediction values you can Create and edit audiences and also do Audience targeting. For example, an audience can be users with prediction probability between 0.4 and 0.7, to represent users who are predicted to be “on the fence” between churning and returning.
- For Firebase Apps, you can use the Import segments feature. You can tailor user experience by targeting your identified users through Firebase services such as Remote Config, Cloud Messaging, and In-App Messaging. This will involve importing the segment data from BigQuery into Firebase. After that you can send notifications to the users, configure the app for them, or follow the user journeys across devices.
- Run targeted marketing campaigns via CRMs like Salesforce, e.g. send out reminder emails.
You can find all of the code used in this blogpost in the Github repository:
What’s next?
Continuous model evaluation and re-training
As you collect more data from your users, you may want to regularly evaluate your model on fresh data and re-train the model if you notice that the model quality is decaying.
Continuous evaluation—the process of ensuring a production machine learning model is still performing well on new data—is an essential part in any ML workflow. Performing continuous evaluation can help you catch model drift, a phenomenon that occurs when the data used to train your model no longer reflects the current environment.
To learn more about how to do continuous model evaluation and re-train models, you can read the blogpost: Continuous model evaluation with BigQuery ML, Stored Procedures, and Cloud Scheduler
More resources
If you’d like to learn more about any of the topics covered in this post, check out these resources:
- BigQuery export of Google Analytics data
- BigQuery ML quickstart
- Events automatically collected by Google Analytics 4
- Qwiklabs: Create ML models with BigQuery ML
Or learn more about how you can use BigQuery ML to easily build other machine learning solutions:
- How to build demand forecasting models with BigQuery ML
- How to build a recommendation system on e-commerce data using BigQuery ML
Let us know what you thought of this post, and if you have topics you’d like to see covered in the future! You can find us on Twitter at @polonglin and @_mkazi_.Thanks to reviewers: Abhishek Kashyap, Breen Baker, David Sabater Dinter.
How Kinguin Notched Up Shopping Experience with Google Recommendations AI

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Over 2.14 billion people worldwide are expected to buy online this year, according to Statista. Online retail sales will account for 22% of all purchases by 2023. But in a competitive retail landscape, positive interactions can mean the difference between a sale and an abandoned shopping cart.
One of the leading global marketplaces – Kinguin.net is a haven for gamers. Their bustling ecommerce business conducts over 500,000 new transactions monthly. Users will encounter over 50,000 unique digital products, from video games, gift cards, in-game items to computer software and services. With over 10 million registered users, Kinguin improved their experience by helping users find items quickly and deliver service at scale.
Helping customers find what they want, fast
Because of Kinguin’s high volume of users—both buyers and sellers—and breadth of digital products, browsing and shopping can be challenging. “Customers shop online for choice and convenience, but it can sometimes be overwhelming. We want anyone who shops at Kinguin to find what they are looking for quickly and easily,” says Viktor Romaniuk Wanli, Kinguin CEO and Founder.
Today’s retailers know that creating personalized shopping experiences is crucial for establishing and maintaining customer loyalty. Kinguin discovered their users were getting a rather standard retail experience. They wondered how they could offer them a more tailored, personalized experience.
They knew product recommendations were a great way to personalize experiences because they help customers discover products that match their tastes and preferences. But it’s not that easy to recommend products. Various shifting factors make recommendations much more complex:
- Customer behavior. Understanding customers is tough. How do you recommend something to a cold start user who’s never been to your site before? What happens when their behavior changes?
- Omnichannel context. According to Harvard Business Review, 73% of all customers use many channels when they buy. What happens when they go from desktop to mobile or from social media shopping to a proprietary app?
- Product data challenges. How do you recommend new products within a large catalog of items? What if your product data has sparse labeling or unstructured metadata?
Data wasn’t a problem for Kinguin. They had data orders, history, wishlists, and could collect events based on their platform interactions. It was the machine learning model expertise they lacked. So rather than building their own solution, they determined it was more cost effective for them to find a reliable partner. It was also essential that the solution integrated easily with Kubernetes, which enabled their global network.
With these considerations in mind, they applied for the Google Recommendations AI beta program. Kinguin became the first gaming e-commerce platform in Europe to use Recommendations AI when it launched in 2020.
Pro gamer move: using a fully managed AI service
Google Recommendations AI uses algorithms to deliver highly personalized suggestions tailored to a customer’s preferences. Google Cloud based these algorithms on the same research that powers models by YouTube search and Google Shopping. Algorithms are always being tuned and adjusted to focus on individuals themselves—not just items.
Many shopping AIs rely on manually provisioning infrastructure and training machine learning models. Instead, Recommendations AI’s deep learning models use item and user metadata to gain insights. It processes Kinguin’s thousands of products at scale, iterating in real time. First, Kinguin pieces together a customer’s history and shopping journey. Then, using Recommendations AI, they can serve up personalized products—even for long-tail products and cold-start users.
By leveraging internal tools, Kinguin didn’t need to start implementation from scratch. After a few trial sessions with Google Cloud engineers, they got started right away. Due to the fast-paced nature of a marketplace—i.e., price changes, out-of-stock items—Kinguin needed their recommendations to be as close to real time as possible. They used internal event buses to stream events and their product catalog directly to the recommendations API.
Kinguin rolled out in high-traffic areas, including their home page, product page, and category pages. They analyzed heat maps and scroll maps to figure out where to test placements. They also experimented with different recommendation models such as “recently bought together” and “you may like.” Engineers also factored in where they were implementing the models. For example, the “others you might like” model would fit best on the homepage, while “frequently bought together” made sense at checkout.
Understanding how product recommendations influence financials is critical for demonstrating the impact of personalization. Using BigQuery, Kinguin could analyze different cost projection models. BigQuery helped them dig into specific financial data to understand their margins and revenue gains.
Playing to win: enhanced customer experience
Since adopting Recommendations AI, Kinguin has improved both customer experience and satisfaction. Search times have shortened by 20 seconds. Additionally, their average cart value has increased by 5 EUR. Conversion rates have quadrupled since the outset. Click-thru rates have doubled, increasing by 2.16 on product pages and 2.8 times on recommendations pages.
“Google Recommendations AI has helped us evolve our service, increase customer loyalty and satisfaction. It has also contributed to a significant rise in sales,” says Wanli. Kinguin is already thinking about other ways of enhancing user experiences with recommendations. Ideas include their checkout process, other landing pages, and email marketing.
Kinguin’s journey with Google Cloud shows how companies can leverage AI to optimize sales and deliver high-performing, low-latency recommendations to any customer touchpoint.
Learn more about Recommendations AI and Google Cloud AI and machine learning solutions.
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How to Build a Data Pipeline Across Hybrid and Multi-region Infrastructures
Building a data pipeline on Google Cloud is one of the most common things enterprises do. Increasingly, organizations want to build these data pipelines across hybrid infrastructures.
Using Apache Kafka as a way to stream data across hybrid and multi-region infrastructures is a common pattern to create a consistent data fabric. Using Kafka and Confluent allows customers to integrate legacy systems and Google services like BigQuery and Dataflow in real time.
Learn how to build a robust, extensible data pipeline starting on-premises by streaming data from legacy systems into Kafka using the Kafka Connect framework.
This session highlights how to easily replicate streaming data from an on-premises Kafka cluster to Google Cloud Kafka cluster. Doing this integrates legacy applications and analytics in the cloud, using different Google services like AI Platform, AutoML, and BigQuery.
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L’Oréal: Managing Big-data Complexity with Google Cloud
L’Oreal is a global company with a presence in 150 countries worldwide. Between managing all of its brands and requirements for different countries, L’Oreal looks to data to make insightful business decisions. How does L’Oreal unify its data across all its systems and databases? How does L’Oreal make the data accessible to thousands of employees? In this video, Antoine Castex, Enterprise Architect at L’Oreal, discusses with Martin Omander how L’Oreal built a serverless, multi-cloud warehouse based on Google Cloud.
Chapters:
0:00 – Intro
0:23 – Why does L’Oreal need a new data warehouse?
0:51 – Who is the L’Oreal group?
1:35 – Which systems does L’Oreal use?
2:14 – How does L’Oreal manage complexity?
3:59 – What is ELT?
4:57 – Who are L’Oreal’s data consumers?
5:41 – How L’Oreal built the data warehouse
8:51 – L’Oreal’s future plans
9:10 – Wrap up
Google Cloud Workflows → https://goo.gle/3q20M1V
Cloud Run → https://goo.gle/3CSWbXG
Eventarc → https://goo.gle/3B7qhFy
BigQuery → https://goo.gle/3KHgyJ3
Looker → https://goo.gle/3Rx4Ind
Checkout more episodes of Serverless Expeditions → https://goo.gle/ServerlessExpeditions
Subscribe to Google Cloud Tech → https://goo.gle/GoogleCloudTech
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The True Story of How HotStar Broke a World-Record–Thanks to Firebase and Google BigQuery
Hotstar, India’s largest video streaming platform with 150 million monthly active users around the world, provides live-streaming of TV shows, movies, sports, and news on the go.
By using a combination of Firebase products together, Hotstar safely rolled out new features to its watch screen during a major live-streaming event without disrupting users, sacrificing stability, or releasing a new build. They also used Firebase with BigQuery to analyze their event data and reduce app startup time.
“We have an ambitious mission, but our engineering team is only a fraction of the size of most of our competitors. But we are still keeping up, and we are doing it with the help of Firebase,” says Ayushi Gupta, Android Engineer, Hotstar.
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