Editor’s note: Today we’re hearing from Ryan Mason, Director, Head of DTC Growth & Strategy, at alcoholic beverage firm, Constellation Brands on the company’s shift to Direct-to-Consumer (DTC) sales and how Google Cloud’s powerful technology stack helped with this transformation. 

It’s no secret that consumer businesses have been up-ended in a lasting manner after 18 months of the pandemic. Consumers have been forced to shop differently over the past year – and as a result, they’ve evolved to be more comfortable with online spending and have grown to expect a certain level of convenience. While the e-commerce share of consumer sales has grown steadily over the past decade, the pandemic was the catalyst for the famous “10 years of growth in 3 months” which many argue is here to stay. 

Facing this reality head-on,  we placed a new emphasis on Direct-to-Consumer (DTC) with our acquisition of Empathy Wines, a DTC-native wine brand that sells directly to consumers via e-commerce. To accelerate our innovation in the DTC space, we added headcount and new functions to the existing Empathy team and empowered the newly-minted DTC group to apply their digital commerce operating model across the rest of the wine and spirits portfolio, which includes Robert Mondavi Winery, Meiomi Wines, The Prisoner Wine Company, High West Whiskey, and more. 

One pandemic and one year later, DTC sales have surged in the wine and spirits category with Constellation positioned as a leader armed with a unique and powerful cloud technology stack, best-in-class e-commerce user experiences, modernized fulfillment solutions, and data-driven growth marketing. 

Benefits of Going DTC 

A report from McKinsey estimates that the strategic business shift to DTC has been accelerated by two years because of the pandemic and argues that consumer brands that want to thrive will need to aim for a 20% DTC business or higher, which is already taking shape in the market: Nike’s direct digital channels are on track to make up 21.5% of the total business by the end of 2021, up from 15.5% in the last fiscal year, and Adidas is aiming for 50% DTC by 2025. But outside of the clear revenue upside, the auxiliary benefits of going DTC are robust.

For Constellation Brands, each of these four pillars ring true, and our shift toward DTC is as much about margin accretion and revenue mix management as it is about consumer insights and data. The added complexities of the alcohol space add wrinkles to our DTC approach and manifest in many areas like consumer shopping preference, shipping and logistics hurdles, and more. In order to win share early and continue to lead the category, we recognized the need to harness the immense amount of first-party data to power impactful and actionable insights. 

Our DTC technology architecture has fostered a value chain that is completely digitized: website traffic, marketing expenditures, tasting room transactions, e-commerce transactions, logistics and fulfillment events, cost of goods sold (COGS) and margin profiles, etc. are recorded and stored in a data warehouse in real time.  For the first time, at any given moment, we can easily and deterministically answer complex business questions like “what is the age and gender distribution of my customers from Los Angeles who have purchased SKU X from Brand.com Y in the last 6 months? What is the cohort net promoter score? Did that increase after we introduced same-day shipping in this zip code? By how much?” 

The ability to answer these questions and understand the root causes allows us to stay nimble with product offerings and iterate marketing strategies at the speed of consumer preference. Further, it enables us to optimize our omnichannel presence in the same manner by leaning on DTC consumer insights to develop valuable strategies with key wholesale distribution partners and 3-Tier eCommerce partners like Drizly and Instacart. At its core, Constellation’s DTC practice is designed to be the consumer-centric “tip-of-the-spear” responsible for generating insights from which all sales channels, including wholesale, can benefit. 

Constellation’s DTC technology approach prioritizes consumer-centricity and insights generation

We have taken a modern approach to building a digital commerce technology stack, leveraging a hub-and-spoke model built around Shopify Plus and other key emergent technology providers like email provider Klaviyo, loyalty platform Yotpo, Net Promoter Score measurer Delighted, Customer Service module Gorgias, payments processor Stripe, event reservations platform Tock, and many more. For digital marketing and analytics, we use Google Cloud and Google Marketing Platform, which includes products like Analytics 360, Tag Manager 360, and Search Ads 360.

To help gather, organize, and store all of the inbound data from the ecosystem, we partnered with SoundCommerce, a data processing platform for eCommerce businesses. Together with SoundCommerce, we are able to automate data ingestion from all endpoints into a central data warehouse in Google BigQuery. With BigQuery, our data team is able to break data silos and quickly analyze large volumes of data that help unlock actionable insights about our business.  BigQuery itself allows for out-of-the-box predictive analytics using SQL via BigQuery ML, and a key differentiator for us is that all Google Marketing Platform data is natively accessible for analysis within BigQuery. 

But data possession only addresses half of the opportunity: we needed a powerful and modern business intelligence platform to help make sense of the vast amounts of data flowing into the system. Core to the search was to find a partner that approached BI in a way that fit with our future-looking strategy.

Our DTC team relies on the accurate measurement of variable metrics like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), Churn, and Net Promoter Score (NPS) as a bellwether of the health of the business and monitoring these figures on a daily basis is paramount to success. To enable us to keep an accurate pulse on strategic KPIs, we considered several incumbent BI platforms. Ultimately we selected Google Cloud’s Looker for a range of benefits that separated it from the rest of the pack.

From a vision perspective, in this particular case we felt Looker was most aligned with our belief that better decisions are made when everyone has access to accurate, up-to-date information. Looker allows us to realize that vision by surfacing data in a simple web-based interface that empowers everyone to take action with real-time data on critical commercial activities. Furthermore, Looker’s ability to automate and distribute formatted modules to a myriad of stakeholders on a regular cadence increases data literacy and business performance transparency.

From a product perspective, we chose Looker for it’s cloud offering, web-based interface, and  centralized, agile modeling layer that creates a trusted environment for all users to confidently interact with data — without any actual data extraction. While other BI tools have centralized semantic layers that require skilled IT resources, we’ve experienced that those can lead to bottlenecks and limited agility. With Looker’s semantic layer, LookML, our BI Team, led by Peter Donald, can easily build upon their SQL knowledge to add both a high degree of control as well as flexibility to our data model.  The fully browser-based development environment allows the data team to rapidly develop, test, and deploy code and is backed by robust and seamless Git source code management. 

In parallel, LookML empowers  business users to collaborate without the need for advanced SQL knowledge. Our data team curates interactive data experiences with Looker to help scale access and adoption. Business users can explore ad hoc analysis, create dashboards, and develop custom data experiences in the web-based environment to get the answers they need without relying on IT resources each time they have a new question, while also maintaining the confidence that the underlying data will always be accurate. This helps us meet our primary goal of providing all businesses users with the data access they need to monitor the pulse of key metrics in near real-time.

Impact and future of DTC BI at Constellation

In short order, taking a modern and integrated approach to the DTC technology stack has delivered economic impact across the portfolio, helping our team understand and combat customer churn, increase conversion rates, and optimize the customer acquisition cost (CAC) and customer lifetime value (CLV) ratios. Perhaps most important is the benefit it can provide to the customer base. Mining customer data and consumer behavior generates data into what our customers are seeking, giving us insights to supply more, or less of it. For example, observing sales velocity and conversion rates by SKU or by region can help us better understand changes in customer taste profiles and fluctuations in demand, providing the foundation for a more powerful innovation pipeline and more effective sales and distribution tactics in wholesale. Our team has also been an early pilot tester for Looker’s new integration with Customer Match, which contributes to the virtuous cycle between data insight and data activation. In the future, our plan is to leverage this cycle to amplify the impact of Google Ads across Search, Shopping, and YouTube placements for the wine and spirits portfolio. 

The operational impact of Looker is also substantial: our team estimates that the number of hours needed to reach critical business decisions has been reduced by nearly 60%, boosting productivity and accelerating the daily operating rhythm. A thoughtfully curated technology stack together with a modern BI solution allows us to stay at the vanguard of the industry. While the DTC sales channel is not designed to surpass the core business of wholesale for Constellation in terms of size, the approach enables unparalleled insights and measurement abilities that will pay dividends for the entire business for years to come.

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.

Lung cancer is the leading cause of cancer death in the United States and like any cancer, early detection is crucial to survival. Screening at-risk populations is an important part of reducing mortality, and if concerning nodules are found on imaging, further testing may be required. Today, we’ll share how Northwell Health uses Google Cloud products such as Cloud Healthcare APIs and BigQuery to increase caregiver productivity and deliver better care for patients with findings that indicate potential development of lung cancer.

Northwell is New York’s largest healthcare provider

Northwell Health is New York’s largest healthcare provider with 23 hospitals and nearly 800 outpatient facilities. Northwell’s nearly 4,000 doctors care for millions of patients each year, and at this scale, there is an immense amount of healthcare data to manage. To better manage and leverage this data, Northwell Health partnered with Google Cloud starting in 2018.

Enabling caregivers to spend more time with patients

Nic Lorenzen, the lead developer of Northwell Emerging Technology and Innovation team, has a mission to put together data for caregivers in a way that makes sense. It is no secret that inefficient electronic health records systems have a negative impact on a physician’s ability to deliver quality care. Traditional EHRs have information distributed across many tabs, which forces caregivers to spend considerable time at the computer trying to find information. Moreover, speed of care matters. If care is delayed, patients may have to spend more time in the hospital and may suffer worse health outcomes.

To solve this problem, Nic’s team focused on giving caregivers the most relevant pieces of data at the right time by developing an intelligent clinician rounding app. The data needed to derive these insights can depend on the caregiver’s role–a nurse cares about different things than a cardiologist. This system aggregates multiple data sources, and provides patient-specific insights to caregivers.

This system would not have been possible before with traditional EHRs and data warehouses that have proprietary data models and rarely sync data in real time. Now with data easily accessible through Google Cloud’s Healthcare solutions, Nic’s team can deliver the right clinical information to the right people instantly. These days, Nic says, “instead of spending 75% of our time dealing with architecting the underlying platforms, we spend 75% of our time focused on  higher value use cases for clinicians and patients. Google Cloud’s Healthcare solutions have greatly improved our developer productivity and time to value.”

Caregivers have found this new system to be a game changer.Before the implementation of this system, caregivers would spend, on average, seven to nine minutes finding the data needed to make medical decisions for one patient. Now, that aggregated information is delivered to a caregiver’s mobile device in less than a second.

Ensuring patients get the right care with the power of AI

There are a number of reasons why patients might not get the care that they need. For example, patients today can go to multiple hospitals and clinics settings, and coordinating care across multiple facilities is complex. Regional hospitals and clinics have their own siloed view of their data, so pertinent information gathered by one clinic might not be seen by another. These gaps in clinical data lead to gaps in patient care.

When a patient gets radiologic imaging, they may have findings unrelated to the reason they initially got the imaging. For example, a chest CT for a car accident might reveal an incidental lung nodule that could be cancerous. Unfortunately, research shows that a large portion of patients do not get follow up for these incidental findings because it isn’t the primary reason why the patient is seeing a doctor. Moreover, social determinants of health are a factor that affects which patients receive follow-up care. Identifying these patients and providing the necessary follow up care prevents adverse events related to delayed detection of cancer.

With Cloud Healthcare solutions, Northwell built an AI model to identify these patients so that oncologists can appropriately follow up with patients who have findings suspicious for lung cancer. The AI model detects incidental pulmonary nodules in radiology reports so that doctors can then contact the patients that need follow-up care. Nic says his team was able to build this system in a week: “Google Cloud did a lot of heavy-lifting for us and allowed us to get to the AI applications much faster. It allowed us to build a platform that just works.” 

Healthcare systems can now rapidly generate healthcare insights with one end-to-end solution, Google Cloud Healthcare Data Engine. It builds on and extends the core capabilities of the Google Cloud Healthcare API to make healthcare data more immediately useful by enabling an interoperable, longitudinal record of patient data. Northwell Health uses Google Cloud as the core of their platform, enabling their developers to create solutions to the most pressing healthcare problems.

Special thanks to Kalyan Pamarthy, Product Management Lead on Cloud Healthcare and Natural Language APIs for contributing to this blog post.

I previously talked about Eventarc for choreographed (event-driven) Cloud Run services and introduced Workflows for orchestrated services.

Eventarc and Workflows are very useful in strictly choreographed or orchestrated architectures. However, you sometimes need a hybrid architecture that combines choreography and orchestration. 

For example, imagine a use case where a message to a Pub/Sub topic triggers an automated infrastructure workflow or where a file upload to a Cloud Storage bucket triggers an image processing workflow. In these use cases, the trigger is an event but the actual work is done as an orchestrated workflow.

How do you implement these hybrid architectures in Google Cloud? The answer lies in Eventarc and Workflows integration. 

Eventarc triggers

To recap, an Eventarc trigger enables you to read events from Google Cloud sources via Audit Logs and custom sources via Pub/Sub and direct them to Cloud Run services:

One limitation of Eventarc is that it currently only supports Cloud Run as targets. This will change in the future with more supported event targets. It’d be nice to have a future Eventarc trigger to route events from different sources to Workflows directly. 

In absence of such a Workflows enabled trigger today, you need to do a little bit of work to connect Eventarc to Workflows. Specifically, you need to use a Cloud Run service as a proxy in the middle to execute the workflow. 

Let’s take a look at a couple of concrete examples.

Eventarc Pub/Sub + Workflows integration

In the first example, imagine you want a Pub/Sub message to trigger a workflow. 

Define and deploy a workflow

First, define a workflow that you want to execute. Here’s a sample workflows.yaml that simply decodes and logs the Pub/Sub message body:

  main:
  params: [args]
  steps:
    - init:
        assign:
          - headers: ${args.headers}
          - body: ${args.body}
...
    - pubSubMessageStep:
        call: sys.log
        args:
            text: ${"Decoded Pub/Sub message data is " + text.decode(base64.decode(args.body.message.data))}
            severity: INFO
Deploy the workflow with a single command:
gcloud workflows deploy ${WORKFLOW_NAME} --source=workflow.yaml --location=${REGION}

Deploy a Cloud Run service to execute the workflow

Next, you need a Cloud Run service to execute this workflow. Workflows has an execution API and client libraries that you can use for your favorite language. Here’s an example of the execution code from a Node app.js file. It simply passes the received HTTP request headers and body to the workflow and executes it:

  const execResponse = await client.createExecution({
      parent: client.workflowPath(GOOGLE_CLOUD_PROJECT, WORKFLOW_REGION, WORKFLOW_NAME),
      execution: {
        argument: JSON.stringify({headers: req.headers, body: req.body})
      }
    });

Deploy the Cloud Run service with the Workflows name and region passed as environment variables:

  gcloud run deploy ${SERVICE_NAME} \
  --image gcr.io/${PROJECT_ID}/${SERVICE_NAME} \
  --region=${REGION} \
  --allow-unauthenticated \
  --update-env-vars GOOGLE_CLOUD_PROJECT=${PROJECT_ID},WORKFLOW_REGION=${REGION},WORKFLOW_NAME=${WORKFLOW_NAME}

Connect a Pub/Sub topic to the Cloud Run service

With Cloud Run and Workflows connected, the next step is to connect a Pub/Sub topic to the Cloud Run service by creating an Eventarc Pub/Sub trigger:

  gcloud eventarc triggers create ${SERVICE_NAME} \
  --destination-run-service=${SERVICE_NAME} \
  --destination-run-region=${REGION} \
  --location=${REGION} \
  --event-filters="type=google.cloud.pubsub.topic.v1.messagePublished"

This creates a Pub/Sub topic under the covers that you can access with:

  export TOPIC_ID=$(basename $(gcloud eventarc triggers describe ${SERVICE_NAME} --format='value(transport.pubsub.topic)'))

Trigger the workflow

Now that all the wiring is done, you can trigger the workflow by simply sending a Pub/Sub message to the topic created by Eventarc:

gcloud pubsub topics publish ${TOPIC_ID} --message="Hello there"

In a few seconds, you should see the message in Workflows logs, confirming that the Pub/Sub message triggered the execution of the workflow:

Eventarc Audit Log-Storage + Workflows integration

In the second example, imagine you want a file creation event in a Cloud Storage bucket to trigger a workflow. The steps are similar to the Pub/Sub example with a few differences.

Define and deploy a workflow

As an example, you can use this workflow.yaml that logs the bucket and file names:

  main:
  params: [args]
  steps:
...
    - log:
        call: sys.log
        args:
            text: ${"Workflows received event from bucket " + bucket + " for file " + file}
            severity: INFO

Deploy a Cloud Run service to execute the workflow

In the Cloud Run service, you read the CloudEvent from Eventarc and extract the bucket and file name in app.js using the CloudEvent SDK and the Google Event library:

  const cloudEvent = HTTP.toEvent({ headers: req.headers, body: req.body });
  //"protoPayload" : {"resourceName":"projects/_/buckets/events-atamel-images-input/objects/atamel.jpg}";
  const logEntryData = toLogEntryData(cloudEvent.data);
  const tokens = logEntryData.protoPayload.resourceName.split('/');
  const bucket = tokens[3]

Executing the workflow is similar to the Pub/Sub example, except you don’t pass in the whole HTTP request but rather just the bucket and file name to the workflow:

  const execResponse = await client.createExecution({
      parent: client.workflowPath(GOOGLE_CLOUD_PROJECT, WORKFLOW_REGION, WORKFLOW_NAME),
      execution: {
        argument: JSON.stringify({bucket: bucket, file: file})
      }
    });

Connect Cloud Storage events to the Cloud Run service

To connect Cloud Storage events to the Cloud Run service, create an Eventarc Audit Logs trigger with the service and method names for Cloud Storage:

  gcloud eventarc triggers create ${SERVICE_NAME} \
  --destination-run-service=${SERVICE_NAME} \
  --destination-run-region=${REGION} \
  --location=${REGION} \
  --event-filters="type=google.cloud.audit.log.v1.written" \
  --event-filters="serviceName=storage.googleapis.com" \
  --event-filters="methodName=storage.objects.create" \
  --service-account=${PROJECT_NUMBER}-compute@developer.gserviceaccount.com

Trigger the workflow

Finally, you can trigger the workflow by creating and uploading a file to the bucket:

  echo "Hello World" > random.txt
gsutil cp random.txt gs://${BUCKET}/random.txt

In a few seconds, you should see the workflow log the bucket and object name.

Conclusion

In this blog post, I showed you how to trigger a workflow with two different event types from Eventarc. It’s certainly possible to do the opposite, namely, trigger a Cloud Run service via Eventarc with a Pub/Sub message (see connector_publish_pubsub.workflows.yaml) from Workflows or a file upload to a bucket from Workflows. 
All the code mentioned in this blog post is in eventarc-workflows-integration. Feel free to reach out to me on Twitter @meteatamel for any questions or feedback.

In 2006, online travel agency redBus introduced internet bus ticketing in India, unifying tens of thousands of bus schedules into a single booking operation. (Think of it as Expedia for bus booking.) Using BigQuery, redBus crunches terabytes of booking and inventory data in mere seconds and at a fraction of the cost of other big data services. BigQuery also helps engineers fix glitches quickly, minimize lost sales, and improve customer service.

Challenge

Executives at the Bangalore-based redBus needed a powerful tool to analyze booking and inventory data across their system of hundreds of bus operators serving more than 10,000 routes. They considered using clusters of Hadoop servers to process the data but decided the system would take too much time to set up and would require a specialized staff to maintain it. It also would not provide the lightning-fast analysis they needed.

“It would have taken at least a couple of hours to analyze anything,” says Pradeep Kumar, a technical architect at redBus. “Crunching very large data sets would have been a day’s job. We needed something more powerful to get the real-time analysis we were looking for.”

Solution

Kumar and his colleagues learned about BigQuery and realized it was the right match for their data processing needs. The web-based service, which enables companies to analyze massive datasets using Google’s data processing infrastructure, is easy to set up and manage since its simple, SQL-like query language doesn’t require complex technology or specialized personnel. It also has low overhead costs.

The redBus team uses BigQuery as part of an intricate data collection and analysis process. Applications hosted on a range of servers continually pump information related to customer searches, seat inventory, and bookings into a centralized data collection system. Engineers upload the data to BigQuery, which provides answers to complex queries within seconds. For example, BigQuery helps redBus staff:

• Learn how many times customers searched for seats and found none or very few available, indicating more seats should be added to a route
• Investigate decreases in bookings and notify engineers if a technical problem is the cause
• Identify server problems by quickly analyzing data related to server activity

Results

BigQuery provides near real-time data analysis capabilities at 20% of the cost of maintaining a complex Hadoop infrastructure. Queries that would have required a day to analyze on a Hadoop framework take less than 30 seconds using Google’s web-based service.

“We explored several data analytics solutions. Nothing comes remotely close to the sheer power of Google BigQuery,” Kumar says. “It made large-scale data collection and crunching possible with little effort, which has translated to a significant business advantage.”

Google Cloud Platform results

• Analyzes data sets as large as 2 terabytes in less than 30 seconds using a simple, SQL-like language
• Saves time analyzing technical problems and customer booking trends
• Spends 80% less than they would have on a Hadoop infrastructure and avoids setting up and maintaining a complex infrastructure in-house
• Strengthens the company by improving customer service and engineering quality

The fast insights gained through BigQuery are also making redBus a stronger company. By minimizing the time it takes staff members to solve technical problems, BigQuery has helped improve customer service and reduce lost sales.

“Getting to the root of problems used to be really time-consuming,” Kumar says. “By the time we figured it out, customers might have given up. Now if there are booking problems, BigQuery helps us understand the reason right away. Choosing Google BigQuery was the right decision for our company.”