The power of personalization: How RudderStack is transforming data warehousing

The power of personalization: How RudderStack is transforming data warehousing

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Since personalization drives 15 to 25% of revenue per customer, this concept continues to gain steam because it boosts satisfaction rates, market share and income growth, according to Eric Omwega (pictured), vice president of marketing and operations at RudderStack Inc.

Using its Warehouse Native Customer Data Platform, RudderStack unlocks true personalization through a rich customer profile with deterministic or probabilistic features, such as the last time a user logged into an app or website, thanks to behavioral and relational data, Omwega explained.

“RudderStack … enables companies to collect, unify and activate their customer data,” he said. “Warehouse Native, what that means is that instead of storing data, RudderStack actually turns a customer’s data warehouse or data lake into a customer data platform and handles all of the collection, the modeling, i.e., unification and the activation of that data.”

Omwega spoke with Lisa Martin, industry analyst for theCUBE, SiliconANGLE Media’s livestreaming studio, during a CUBE Conversation in advance of the “Analytics and Cost Optimization” AWS Startup Showcase on June 8. They discussed why a Warehouse Native CDP is ideal for enhanced personalized experiences and how RudderStack fits into the picture. (* Disclosure below.)

Overcoming limitations of traditional CDPs with warehouse-native approach

Since customer data is arguably the most valuable data that a company possesses, selecting the right CDP with the right architecture could be the difference between achieving business goals and lagging behind. As a result, a Warehouse Native CDP is beneficial because it offers valuable customer use-cases, improves security and reduces cost, according to Omwega.

“The advantages that we have are that we actually have the end-to-end feature set,” he said. “We’ve got the data collection with what I consider best-in-class events to pipeline for behavioral data. We have our ETL pipeline specifically focused on customer data.”

Given that composable and traditional or packaged CDPs are costly, cumbersome to manage and create data silos, the Warehouse Native CDP presents the flexibility needed to build a future-proof tech stack. This is because a Warehouse Native CDP is built on top of data lakes or warehouses supported by Amazon Web Services Inc., such as S3 and Redshift, Omwega explained.

“The challenge for our founders was can you build a CDP on top of a customer’s warehouse to avoid the data silo issue, to reduce the cost from having to store data in two different places; and hence RudderStack was born,” he added.

Taming the pressure on ad spend

To unravel significant return on ad spend, RudderStack uses ETL pipelines and native out-of-the-box connectors for major ad platforms, such as Facebook and Google. This makes ad spend friendly, as recently showcased by a leading shoe retailer, according to Omwega.

“We essentially had a POC, a proof of concept, where we had a number of different yard sticks that we had to hit,” he noted. “They ran the POC for three months, and they saw a 400% increase in return on ads spend by using RudderStack. We exposed the data for them to model for modeling analytics in their warehouse.”

Real time is no longer a nice-to-have for organizations, as consumers, customers, businesses and personnel have that real-time experience expectation. As a result, RudderStack enables both batch and real-time use cases for warehouses and downstream destinations, such as email marketing and Facebook ads platforms, respectively, Omwega pointed out.

“We have both the real-time pipeline to downstream destinations, but then also sending that data to your warehouse or data lake where you can do additional modeling and create more value from your customer data and activate it using our reverse ETL pipeline,” he said.

Here’s the complete video interview, and be sure to check out SiliconANGLE’s and theCUBE’s upcoming “Analytics and Cost Optimization” AWS Startup Showcase event on June 8:

(* Disclosure: RudderStack Inc. sponsored this segment of theCUBE. Neither RudderStack nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE

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