ETL stands for “extract, transform, load.” It is an integration process that combines data from multiple sources into a single data store to inform BI decisions.
Much has changed since ETL was first introduced. However, the core tenets of ETL remain unchanged. The data that is pulled from different sources must be cleaned, transformed, and stored in a data warehouse. The stored data is then analyzed to drive insights.
An ETL data pipeline consists of three processes:
Extract: Pulling data from a SQL or NoSQL database, XML file, etc.
Transform: Converting the structure and format of the extracted data to fit the target stack
Load: Placing the data set into the usable system (application, data warehouse, lake, etc.). End users can access and use downstream to make well-informed business decisions.
ETL tools refer to software specifically developed to facilitate ETL processes, which involve extracting data from various sources, cleaning and ensuring data consistency and quality, and then consolidating the gathered information into data warehouses. ETL tools streamline data management strategies and enhance data quality by providing a standardized structure for data intake, sharing, and storage.
ETL worked well when data sources were limited - in other words, when there was much less data out there. The need for more comprehensive and accurate operational analytics sparked the emergence of reverse ETL or rETL tools which extract data from the warehouse, transform it to make it sync with the target destination’s API, and load it into the target app. The target app can be CRM, marketing automation, or promotion software.
ETL and rETL sit on opposite sides of a data pipeline, powering data integration and data activation respectively.
Data is the lifeblood of modern businesses. According to McKinsey, retailers need a robust data lake, an analytics environment, and executional tools to achieve personalization at scale. As a powerful component of a modern tech stack, rETL enables businesses to:
Benefit from data-driven decision-making: Reverse ETL allows businesses to convert the stored data in the warehouses into actionable and measurable data. Data-driven marketing campaigns lead to higher conversion rates and more engagement while boosting ROI due to the better management of available resources.
Prevent data silos: One of the key benefits of implementing rETL is enabling all teams within an organization to have access to the data they need. The only restriction is the security of data and different permission levels for different departments.
Run analytics at scale: After a one-time integration, your rETL tools scale up as your business continues to grow. Using these tools you can optimize your promotions, improve your product recommendation algorithms, predict churn rate, etc.
Check out how Talon.One has partnered with various tech solutions to facilitate seamless integrations that power enterprise loyalty programs and advanced promotions.
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