Building a Customer Data Platform: Knowing What Customers Really Want From intuition to insights
In an ambitious project with Deloitte and Google, REWE has developed its own Customer Data Platform (CDP). This platform consolidates all voluntarily shared customer data from a variety of sources into a "Single Source of Truth". The 360-degree view of customers enables completely personalized marketing communication—a pioneering project for the industry and a prime example of successful collaboration among multiple project partners on an equal footing.
The Situation
Under its core brand REWE, the group operates over 3,800 stores in Germany, serving over 30 million people weekly. Customers and their needs are the focus: since its founding in 1927, this has been REWE Group's mission. In the days of small neighborhood stores, customer-centricity was straightforward through direct, personal interaction at the counter. However, today it is much more challenging, as the group operates over 3,800 stores under its core brand REWE in Germany, serving over 30 million people weekly. This is compounded by additional services and digital channels such as delivery and pick-up services. Retail faces significant challenges in addressing customers individually and relevantly on this scale and complexity. The solution is digital: an effectively usable, unified, and precise central data foundation creates the basis for a holistic view of customers and their needs, using cloud computing.
“What customers want is not in the stars; it's in the cloud. Through the combined efforts of REWE, Deloitte, and Google, we have implemented groundbreaking marketing technology. We now have the ability to merge Customer IDs across a wide range of data sources. We have already incorporated this capability into various activities that deliver direct value. Many more use cases will follow.”
Maximilian Hausmann, Head of Media Strategy & Data-Driven Marketing, REWE Group
“In the joint development of the new data platform with REWE and Google, we have created significant added value for our customer in the German grocery retail sector. And this is exactly our strength at Deloitte: unlocking new potentials that drive growth—making an impact that matters. The project is evidence of the importance of close cross-functional collaboration: among the teams from REWE, Deloitte, and Google, but also among Deloitte experts from different competency areas."
Dr. Lars Finger, Partner Deloitte Digital
The Solution
Therefore, REWE decided to build its own Customer Data Platform (CDP) in cooperation with alliance partners Deloitte and Google, internally referred to at REWE as CustomerCloud. The development had to consider several aspects. Customers expect a personalized shopping experience tailored to them across the entire customer journey, across all touchpoints and channels, providing true added value. At the same time, all applicable data protection regulations needed to be strictly adhered to. Additionally, the CDP was to be designed for seamless integration into the existing tech stack and account for future developments in the marketing environment, such as the phasing out of third-party cookies in web browsers like Chrome, necessitating more effective use of first-party data (i.e., data that REWE directly receives from customers). The CDP optimally fulfills all these requirements.
The project's technologies, marketing expertise, and knowledge from the Deloitte and Google alliance were employed. Google provided the technical cloud computing foundation as a technology partner, while Deloitte acted as a strategy and implementation partner. The CDP is based on the Google Cloud Platform: this leading solution allows for real-time processing of large data volumes, with high flexibility and the ability to integrate innovative capabilities such as AI. By aggregating and analyzing first-party data, personalized marketing messages can now be delivered to customers at the right time through the appropriate channel.
The Customer Data Platform opens up a wide range of innovative use cases and extensive optimization potentials. Customers no longer receive redundant and potentially annoying advertising, but are instead targeted appropriately, allowing REWE to use its media budget much more efficiently.
The CDP also offers exciting use cases for the retail media business—a novelty for REWE, naturally also under strict adherence to data protection rules. Through ads on the rewe.de website, advertising partners can now target first-party audiences in a differentiated manner.
The Impact
What were the key factors for the project's success?
Primarily, the close, productive collaboration of REWE's Google Cloud experts with the teams from Deloitte and Google, which followed a "one-team" approach. All participants contributed their cross-functional expertise, including Deloitte: the broad industry and marketing expertise from Deloitte Digital's consulting division was complemented by Deloitte Risk Advisory to address all legal aspects and data protection issues. Deloitte's analytics consultants and tech specialists, in collaboration with REWE and Google, developed the CDP's strategy, architecture, and target image, implemented the setup, and continue to provide support for platform operations. Deloitte's close connection to Google's development teams within the alliance proved particularly valuable for rapid and successful implementation.
The technologies, marketing expertise, and knowledge from the Deloitte and Google alliance were utilized for this project. Google provided the technical cloud computing foundation as a technology partner, while Deloitte acted as a strategy and implementation partner.
With the Customer Data Platform, REWE now possesses a tailored system seamlessly integrated into the existing technology architecture of the REWE Group, thanks to the flexible Google Cloud Platform. Data protection remains fully preserved, and the tangible added value for customers creates a win-win situation—the crucial prerequisite for their consent to data use. Moreover, the CDP opens up further pioneering use cases, such as the digitization of previously printed REWE brochures, which will significantly contribute to the group's sustainability goals.
With the groundbreaking new Customer Data Platform created in collaboration with Deloitte and Google, REWE positions itself as a technological pioneer and innovator in the German retail market—a factor that also increases its attractiveness for new talent in times of skilled labor shortages.
Real connections. Real impact.
People in Germany seek products and solutions that are personally helpful and tailored to them—this also applies to advertising. They expect retailers to offer them relevant deals. The Customer Data Platform (CDP), realized in close collaboration with Google partner Deloitte, REWE, and Google, provides the technological foundation for this. Google Ads delivers the necessary reach and personalization options for relevant offer communication. And our Google Cloud provides the technical solutions for the CDP.
Dr. Jannika Bock, Managing Director Retail, Google Germany
