Budget concerns and inflation shock are causing noticeable shifts in consumer behavior, a head-spinning turnabout since the pandemic days of 2020. We went from not having access to enough goods to now not having the right goods at the right price points. Heading into the holiday season, retailers will need to look sharp and be able to deliver value to the increasingly cost-conscious consumer — with frictionless product discovery and digital shopping experiences, relevant inventory, and personalization.

Those are a few of the insights gleaned from a recent eMarketer webcast on how retailers can better combat the effects of inflation, with pragmatic recommendations from experts including Amy Eschliman, managing director of retail solutions strategy and industry engagement at Google Cloud; Alexis Hoopes, vice president and head of e-commerce and direct-to-consumer (DTC) at Mattel Inc; and Elissa Quinby, head of retail insights at Quantum Metric. We’d like to share five key takeaways that retailers can adopt.

1. Be prepared for earlier holiday planning. Budget-conscious buyers are planning their purchases earlier than ever. According to our partner Quantum Metric’s latest Retail Benchmarks research, 40% of U.S. consumers and 30% in the UK have already started their holiday shopping1. At Mattel, Alexis noted, “We’ve learned to be nimble and early for our consumers, and to have products available for them when they’re ready to shop.” With higher prices, she added, “Consumers are preplanning and researching more, viewing product detail pages multiple times to check a higher-price item before adding it to their basket.”

Quantum Metric’s same research also shows that while average cart values grew between January to July 2022 — larger than they were at the same time last year1 — consumers were shopping less frequently. Because of higher prices, 37% of shoppers are now pre-planning and purchasing items all at once to help keep to their budget1. Amy observed. “That means retailers need to make it super easy for customers to find what they want to avoid shopping-cart abandonment.”

Retailers who make it easier for shoppers to find the right products, by providing Google-quality search and recommendations, can help reduce cart abandonment and increase conversions.

2. Get a handle on out-of-stock issues. While many of the supply-chain issues that surfaced during the pandemic have cleared up, inventory continues to be a challenge in retail. During the 2021 holiday season, Google/Ipsos research shows that consumers saw a 253% increase in “out of stock” messages versus pre-pandemic2. Elissa further pointed out that a great majority of both U.S. and UK consumers experience out-of-stock issues several times a month. It’s a fluid situation, however, with retailers facing bloated inventory as consumer demands quickly pivot from, for example, branded goods to generic or white-label items. “In the next six months or so, you really need to make sure you have the right inventory to meet consumer demands,” she advised.

The need for end-to-end visibility and the ability to act in real-time across the supply chain has never been more pressing. Google Cloud and our partners are tackling the top supply chain issues head on with solutions that enable end-to-end visibility, analytics and alert-driven event management as well as AI solutions and automation to streamline processes like procurement, fulfillment, and delivery.

3. Introduce value: communicate the quality of the product and the experience. While rising prices are paramount for many shoppers, it’s a common misconception that consumers are making purchase decisions based solely on price. Alexis remarked, “In e-commerce, we talk about price, product, service, and experience. Price is only one of the pillars for consumers. At Mattel, we are fully focused on product and experience. What makes this special? How do we connect directly in new ways to the consumer? Create ‘wow’ moments and deeper connections. When we think about value for our consumers, it’s the strength of the products that will drive the purchase.”

Elissa also noted that while consumers are doing a lot of comparison shopping, it’s really about value, whether a high-quality product or a high-quality experience. Quantum Metric’s Continuous Product Design solution, which is built with BigQuery, ingests data across multiple digital touchpoints, including from mobile and web applications, and connects customer signals to every stage of the product lifecycle to help deliver the products and experiences that customers actually want.

4. Ensure consistent experiences across channels. Today, consumers crave the cross-channel shopping experience. “The channel experience has gone from online to in-store to now everywhere,” Amy commented. “We call it ubiquitous digital shopping.” Elissa added that 75% of consumers do most of their shopping digitally. However, mobile drives 67% of digital traffic, but just 49% of sales.1 “Recent trends in traffic and conversion rates by device show that we can expect the most traffic for the big sale days on mobile,” she said. “People are looking for discovery and awareness, maybe even adding items to the cart as a placeholder or reminder. But they prefer to complete a sale on a desktop. It will be critical for retailers to offer a consistent experience, especially on major sale days like Black Friday and Cyber Monday.” Elissa also advised wrapping up any experiments with product and site design early, making sure to understand the customer experience holistically across the organization and prioritizing efforts to eliminate friction.

Consumers now expect to be able to shop wherever and whenever best fits their needs, whether in a store, on your website, through your app, or from within a social media ad, and have it be a consistently good experience no matter how they first entered or exited your commerce site. Google’s 2022 Retail Marketing Guide provides useful insights and tips on how to grow your online and in-app sales.

5. Personalize touchpoints to build loyalty. Connecting with your customer base and making sure they understand the value of your offering is essential. Alexis noted that the key is to keep your messages fresh as the holiday shopping season expands, providing new messages as they keep coming back to your store. “We need to engage them by helping them find what they are looking for at the right time,” she said. “Recognize that they are doing more planning and wish-list building early, then buying last-minute gifts at lower prices towards the end. Make sure those are front and center.”

Alexis also pointed out that today, consumers are providing more data points with the products they view or the items sitting in their carts. “What’s so great about e-commerce is that we can use all of this to create more personalized, direct messages targeted to those consumers,” she commented.

Amy recommended continuing to focus on conversion with product discovery and personalization, harnessing customer data to drive insights and action. “Any company’s biggest asset is their data. Using it in as many ways possible and activating it across the company is incredibly important,” she remarked. “Take advantage of your first-party data to activate everything from marketing campaigns to a more efficient supply chain. For every customer who comes to one of your digital properties, make sure your product discovery is as easy as possible. Pay attention to your recommendations, driving personalization to make that experience as unique and fruitful for the customer as possible.”

Achieving these objectives requires a modern cloud data warehouse and activation of a customer data platform. Retailers can explore how Google Cloud’s advanced data capabilities and our ecosystem of partners can power a customer data platform that supports more personalized marketing, shopping experience, and customer service.

While these are our key takeaways, we invite you to register to watch the on-demand webinar, “5 Ways Retailers Can Combat the Effects of Inflation,” for even more insights.

1. Quantum Metric Retail Benchmarks, “Adjusting for Inflation.” The report is based on aggregated browsing behavior from January to July 2022, paired with a survey of 3,400 consumers in the U.S. and UK.
2. Google/Ipsos, Holiday Shopping Study, Oct 2021 – Jan 2022, Online survey, US, n=7,253, Americans 18+ who conducted holiday shopping activities in past two days

When we launched Partner Advantage, we committed to making it predictable and easy for partners to drive business with us. Since launch, those commitments have been validated by channel experts like CRN, which gave Partner Advantage a 5-Star award for 2022, and by the fact that our partners have seen impressive growth* across virtually every facet of their business.

I am pleased to announce that our commitments endure today with the launch of Consumption Packs for Deal Acceleration Funds and Partner Services Funds (DAF and PSF for partners). Inspired by partner feedback, these new packages are designed to accelerate all stages of a customer’s journey to the cloud, and make it even easier and faster for partners to do business with us.

Consumption Packs are purpose-built so that partners can plan and initiate customer projects much more quickly, with predictable funding. They include assets and templates that allow partners to deliver Google Cloud designed and validated infrastructure, application migration and modernization plans to customers faster than ever–particularly for customers beginning their journey to the cloud. Based on learnings gathered from thousands of customer deployments, these turnkey packs have been designed by our partners and Google Cloud Partner Engineering and Professional Services’ teams.

Here’s a brief look at Consumption Packs in action:

• Consumption Packs offer pre-approved, curated templates and assets to simplify and shorten the process for most common projects.
• For Deal Acceleration Funds (DAF), packages include everything partners need to conduct assessments, workshops and proofs-of-concept so they can quickly meet customers where they are on their journey to the cloud.
• For Partner Services Funds (PSF), packages are structured so that partners can develop cloud ready foundation and migration plans that align with Google Cloud priority solution areas.
• Packages have pre-determined funding levels to enable faster deployments.

Partners still have the option to engage with Google Cloud Partner Advantage and their customers through customized requests, as they always have. This is ideally suited for projects that require a tailored approach to meet unique customer requirements.

We are launching nine consumption packs today focused on key enterprise workloads, with a vision toward introducing additional packages to cover more solutions. Partners can explore Consumption Packs now by visiting the Partner Advantage portal.

We welcome your continued feedback and suggestions, and look forward to helping our customers achieve new levels of growth and success, together.

See you in the cloud.

• The Google Cloud Business Opportunity For Partners, a commissioned Total Economic Impact™ study conducted by Forrester Consulting, October 2021

Editor’s note: Coming out of Mobile World Congress 2022, we are excited to share key learnings from our partner ecosystem on how to leverage advancements in 5G technologies to power customer experiences that seamlessly blend our physical and virtual world into one. The original version of this blog was published by Optiva, Inc. Please enjoy this updated entry from our partner.

Telecom operators and communications service providers (CSPs) are elevating customer experiences (CX) across the customer lifecycle. Today’s digital customers’ expectations, needs, usage behaviors and choices are growing and evolving exponentially. Therefore, it is critical to deliver superior and personalized digital customer experiences at each customer lifecycle touchpoint.

To succeed, you need to deliver a dynamic customer experience. Operators are embracing the mantra — next-level CX is the new currency — from onboarding and instant offer provisioning to delivering enhanced self service and supporting subscription renewals, queries and billing actions, and in-session improved experiences. There are commercial benefits to adapting to this paradigm, too, as key customer segments may see added value in enhanced experiences. With 5G, the Ericsson “5G consumer potential” report found that half of early adopters would be willing to pay 32% more for 5G services. Consider the advanced experiences that 5G is able to support, such as:

• Low-latency connectivity and real-time network slicing capabilities, delivering an immersive yet reliable augmented and virtual reality (AR/VR) experience. Imagine a soccer match with a rich 360-degree stadium experience from the customer’s choice of location that immerses a fan in the game excitement.
• AI-driven insights enabling operators to predict customer behavior patterns in real time and leveraging available network capacity to provide customers with personalized, just-in-time discounts and offers that can increase ARPU, enhance the customer experience and reduce churn.
• Proactive action, such as instantly optimizing 5G connectivity network slice bandwidth when the quality of service does not meet its promised level. This could include delivering assured, lag-free network performance to an online gamer for next-level gaming intensity or it could be about providing proactive, transparent reimbursements to end customers on the fly, preventing dissatisfaction complaints. Further, 5G with dedicated network slices also enables business applications that exceed an end-to-end SLA essential to a business-to-business (B2B) subscriber.
• Enabling immersive experiences across all services and touchpoints by redefining how consumers interact with offerings from anywhere, whether that’s a smartphone or tablet. What’s more, it’s about feeding intelligence gleaned from those customer interactions into a single view across all ecosystems in real time to gain a full picture of the customer.

How cloud shapes the future of telecom customer experience

Through cloud technology and cloud-native architectures, telecom operators and service providers have the opportunity to deliver such 5G use cases and differentiated offerings. Cloud maximizes the benefits and enables delivery, thereby dramatically improving and reimagining the possibilities for CX. This includes how customers connect, consume and buy services, and it strengthens customer affinity and loyalty.

Cloud and the technologies it maximizes, such as 5G, also present a wide range of innovative monetization opportunities beyond traditional telecom revenue streams and beyond connectivity. Thus, the highest priority for telecom must be on effectively and efficiently harnessing the potential capabilities for launching personalized service offerings for consumer and enterprise at a high velocity. As a result, the new customer engagement model requires agility, responsiveness and reliability to deliver these services across all touchpoints of the customer’s journey.

As such, Optiva and Google Cloud are engaging in a multi-year partnership to help CSPs enable faster time to innovation, flexible 5G monetization and operational cost savings, while driving strong customer experience. Leveraging the Google Cloud platform enabled by Anthos, which supports the deployment and operation of business support system (BSS) applications across public clouds, on-premises data centers and at the network edge, Optiva’s distributed solution deployment offers telecom operators new ways to monetize 5G networks through use cases such as private 5G, IoT and ultra-low latency edge solutions.

Gaining a competitive edge on the new playing field

The solution to these new BSS and monetization requirements lies in the cloud’s unique advantages. For example, to achieve agility, an essential cloud tool, the sandbox, allows operators to accelerate iterations to find optimal solutions. The sandbox shortens product cycles to a fraction of traditional timelines and empowers operators to reinvent their functionalities and service capabilities — lowering business risk and driving dramatic cost savings.

As a result, operators can increasingly explore, experiment, learn, launch and relaunch rapidly. This allows for the fast introduction of new and differentiated offerings, increased service velocity and cost-effective go-to-market opportunities. For that reason, a new competitive playing field is emerging and making the days of traditional and full digital transformations a thing of the past.

Instead, by leveraging cloud technologies, customer lifecycle opportunities and possibilities are born, such as:

• End-to-end digital onboarding experiences: Hassle-free digital customer onboarding in little time by leveraging next-gen BSS with embedded automation across the different modules. This digitizes the customer registration and ordering process, including customer verification, SIM allocation, and the selection and activation of a user’s choice of plans and more.
• Real-time offer optimization based on customer insights: On-the-fly optimization of offers based on AI-driven real-time insights to predict usage behavior.
• Handling ultra-low latency service quality with distributed systems: Delivering and charging for ultra-fast services from the edge rather than sending and processing them at a central cloud. This enables new business opportunities by leveraging new private 5G offerings.
• Assured service quality and complaint reduction through automated real-time network configuration: By consistently monitoring the network quality and application and taking corrective actions to match the SLA requirements, we can boost the user experience (e.g., if a user subscribes to an 8K video plan). Thus, if the bandwidth level drops below the agreed-upon resolution level, the service can push an update to the user and potentially offer them a complimentary added data bundle leveraging analytics, churn prediction models and insights.
• Maintaining a real-time single source of truth for customer data: Having a single, distributed repository of real-time updated customer data allows CSPs to deliver customer services more smoothly across all touchpoints.
• Expanding product catalog with a partner ecosystem: Leveraging open APIs to build and expand partner ecosystems to launch new products and services that enable CSPs to expand the services they provide customers and help increase their market relevance.

Cloud momentum accelerates, enabling revolutionized BSS and revenue models

Service providers are forging their paths and investing in and adopting cloud technologies. Cloud empowers operators beyond connectivity and volume offerings on data, text and voice. The technology offers more and unlocks the operator’s ability to meet specific user segment experience requirements in real time and differentiate offerings based on latency, capacity, throughput, speed and device type.

As a result, operators can shift to new product-driven monetization capabilities, allowing them to configure their BSS without heavy customizations or necessitating the expertise of their IT teams. Instead, they can now empower, for example, marketing teams — with minimal steps and product-specific expertise needed — to optimize rate plans in real time based on usage and experience analytics, roll out promotions and satisfy customer demand for a delightful experience.

The new currency across the customer lifecycle — next-level telecom BSS and CX

Operators need the capability to learn fast, fail fast, launch, and relaunch in quick cycles. This capability is growing more critical as Capex and Opex become challenged and protecting ARPU and increasing subscribers becomes harder in a cloud economy. Telecom operators are picking up speed for cloudification and reimagining the potential of their BSS systems. And with 5G, innovation driven by cloud-native capabilities and automation via machine learning, operators have a genuine opportunity to revolutionize customer engagement and deliver a next-level hyper-personalized CX — the new currency of 5G cloud.

When moving software applications from on-premise hardware to the cloud, it often “just works,” but it’s never guaranteed. This is especially the case for applications that are hardware intensive. This blog post examines what happened when a media company took software for real-time video broadcasts into the cloud. We’ll share how we, Google Cloud, collaborated with media software provider Vizrt to meet the demanding requirements of an eSports broadcaster. Together, we delivered a solution that not only met but exceeded the expected performance from a cloud-based deployment.

Video broadcasting in the cloud

Video broadcasts are a very hardware-intensive workflow. By needing to process and store data streams in near-real-time, broadcasts stress GPU, memory, disk, and CPU. In addition, the performance requirements quickly increase as producers add additional video streams into the mix, such as in this case, an eSports broadcast.

Vizrt’s customer wanted to increase their broadcast production by doubling the amount of camera feeds from 8 to 16, to have a more compelling and elaborate production.

At the heart of the eSports broadcasters’ production was Viz Vectar Plus, Vizrt’s software-based 4K switcher. While the client wanted to move more of its production into the cloud, Viz Vectar Plus was designed initially for on-premise hardware. So, when they tried a straightforward “lift and shift ” to the cloud, it surprised no one that the software didn’t run as well. They turned to Google Cloud and Vizrt to make it run the way they needed it to. 

Troubleshooting lift and shift

Initially, we suspected that the issue could be in the design of the cloud deployment, i.e., the configuration of the VM hosting the software. So the focus of our troubleshooting was to find a cloud configuration that 1) made sure the software worked to spec and 2) did so optimally considering costs, robustness, and performance. Furthermore, we wanted to ensure that all components met performance specifications, particularly throughput, IOPS, and network bandwidth, as this was a video media application. Only after we validated the cloud deployment would we ask Vizrt to investigate the code itself. We would:

1. Set up a test environment.
2. Benchmark the environment.
3. Test various configurations.
4. Validate that the vendor software was optimally using the configuration.  

This high-level methodology is straightforward. However, we approached the details in a particular order, considering we were optimizing for broadcast video. We honed in on the optimal cloud configuration by testing the following elements, prioritized in order of expected impact:  

1. VM type: The VM type largely dictates the available memory and CPU configurations. However, because this was a VM workflow, we had to pick N1’s. Today, they are the only VM type that can be attached to GPUs, which are practically a requirement for broadcast video.  
2. Disk type: Video broadcasts require high I/O speeds to handle high-quality video streams. We went from an HDD to a much-faster SSD. 
3. CPU size: We increased the VM CPU cores from 16 in increments up to 32. Increasing CPU size indeed increased performance, but did not return the level of performance we needed.
4. SSD size: We increased the SSD size (and the accompanying higher IOPS and throughput that comes with increasing the size) enabling more simultaneous recordings. Again, this only partially worked. 
5. Disk count. We noticed read/write problems when the application was reading/writing with a single drive. There are two typical ways to approach this: 1) Separate read/writes tasks among two discs and 2) striping the data streams across discs. Implementing these had improved but marginal improvements in performances.  

After our testing, we arrived at the following optimal configuration:

• VM: n1-standard-32 instance w/ 500Gb boot drive
• GPU: 1 T4 GPU 
• SSD: 1 persistent disk with 1TB*

* We would later determine that two SSDs for separate read and write operations would be more optimal

This configuration was able to produce between 6 – 12 streams. Compared to the on-premise target of 8 streams, this was about as good but was not the customer’s target of 16. So we would need Vizrt to take the ball from here to optimize the software itself.

Optimizing media applications for cloud

We provided Vizrt our recommended configuration, performance notes, and the following best practices that are generally applicable to cloud-based video workloads:

• Separate read and write operations to two different disks to enable higher performance for both operations. 
• A second 1 TB SSD persistent disk can be attached to the VM instance to increase performance.

With this information, Vizrt engineers worked their magic, providing daily patches to test; with each daily iteration the overall solution was found quickly. Not only were they able to meet the broadcaster’s request of 16 feeds, but they were also able to go even further to 44. Over a 5x improvement by optimizing for the cloud! 

Teamwork in troubleshooting 

Because of the specialized nature of media and entertainment, workflow situations across multiple companies are common as specialized applications hand their work from one to another. 

“By working in partnership with Google Cloud we managed to build a system that can scale in ways that probably none of us thought would be possible. This allowed Viz Vectar Plus to run fully in the cloud using NDI and opened up amazing possibilities for making shows,” Dr. Andrew Cross, President R&D, Vizrt Group. “We ended up with great feedback from the customer, who were appreciative of how Google Cloud and Vizrt collaborated on a solution.”

The results speak for themselves: A satisfied customer with over a 5x improvement in results. That’s what we call a good game.