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Tesco‟s journey into
m-commerce

                                 Ed Hodges
                   Mobile Consultant, Tesco
How we started integrating m-commerce:
      • Sir Terry Leahy, Tesco‟s ex-CEO, outlined
        mobile as a core strategy in 2010
      • Development to be taken in-house
      • Team to be built to handle delivery of apps to
        devices for next 10 years
      • Production team works closely with R&D and
        Marketing to define current and future apps
      • Real marketing commitment to educate and
        grow mobile – iPhone Barcode TV ad
Last 6 months results:

      • Huge success with app downloads
      • Multiple apps released across multiple
        platforms:
         •   Tesco Groceries
         •   Tesco Finder
         •   Clubcard
         •   Tesco Motoring
         •   Tesco Recipes
      • Mobile websites being rolled out e.g. Tesco
        Direct
Ok, so we‟re going to do mobile.
How do we grow beyond the
existing online strategy?
Research: From the Current Online
Grocery Shop…

                  • Ordering between 40 and 70 grocery items
                    takes up to an hour.
                  • Placing orders once a week or once a
                    fortnight. Can‟t get excited about much of
                    it!
                  • Groceries are mainly “non-aspirational”
                    products (e.g. toilet rolls, baked beans).
                  • Perceived as long and laborious task!
Source: Nick Lansley, Tesco R&D
… to the PERFECT Online Grocery Shop

                      • To bring about a step change in the
                        customer experience online for grocery.
                      • To aim towards effortless grocery
                        shopping.
                      • Move from long-and-laborious shopping
                        to little-and-often shopping.
                      • To bring grocery home shopping to all
                        kinds of internet-connected devices.
Source: Nick Lansley, Tesco R&D
How are we getting
there?
   We‟ve built mobile applications that can do everything
   from „capture the moment‟ right through to a full
   grocery shop:
How are we getting
there? exploring different styles across different platforms.
   We’re
How are we getting there?
   iPad: Designed to be a more immersive experience.
How are we getting
there?
   Mobile Web enables ‘quick & often’ across feature phones
So which is best? Mobile Web vs Native Apps
   • Honestly? We‟re playing both sides…
   • Not sure which is best as both proving to be a
     success
   • It appears there‟s confidence in the mobile buying
     process, we have 10 years of education on the web
     to thank for that.
   • „Little and often‟ can be „big and often‟ too…
   • However, current payment methods are
     uncomfortable to use for both retailer or customer…
In conclusion:
 Things to consider when integrating your mobile channel:
 • Gain buy-in right from the top, it will ease integration
 • Understand who your customers are, it will enable you to
   make the right choice of platform
 • Research what they want, it will help define & focus your
   first app
 • If native app based, build for the App Stores where people
   have a propensity to consume apps
 • If the app is transactional, carefully research payment
   options
Thank you

                      Ed Hodges
            ed@originmobile.com
               @edward_hodges

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Camerjam mobile for the cultural sector tesco

  • 1. Tesco‟s journey into m-commerce Ed Hodges Mobile Consultant, Tesco
  • 2. How we started integrating m-commerce: • Sir Terry Leahy, Tesco‟s ex-CEO, outlined mobile as a core strategy in 2010 • Development to be taken in-house • Team to be built to handle delivery of apps to devices for next 10 years • Production team works closely with R&D and Marketing to define current and future apps • Real marketing commitment to educate and grow mobile – iPhone Barcode TV ad
  • 3. Last 6 months results: • Huge success with app downloads • Multiple apps released across multiple platforms: • Tesco Groceries • Tesco Finder • Clubcard • Tesco Motoring • Tesco Recipes • Mobile websites being rolled out e.g. Tesco Direct
  • 4. Ok, so we‟re going to do mobile. How do we grow beyond the existing online strategy?
  • 5. Research: From the Current Online Grocery Shop… • Ordering between 40 and 70 grocery items takes up to an hour. • Placing orders once a week or once a fortnight. Can‟t get excited about much of it! • Groceries are mainly “non-aspirational” products (e.g. toilet rolls, baked beans). • Perceived as long and laborious task! Source: Nick Lansley, Tesco R&D
  • 6. … to the PERFECT Online Grocery Shop • To bring about a step change in the customer experience online for grocery. • To aim towards effortless grocery shopping. • Move from long-and-laborious shopping to little-and-often shopping. • To bring grocery home shopping to all kinds of internet-connected devices. Source: Nick Lansley, Tesco R&D
  • 7. How are we getting there? We‟ve built mobile applications that can do everything from „capture the moment‟ right through to a full grocery shop:
  • 8. How are we getting there? exploring different styles across different platforms. We’re
  • 9. How are we getting there? iPad: Designed to be a more immersive experience.
  • 10. How are we getting there? Mobile Web enables ‘quick & often’ across feature phones
  • 11. So which is best? Mobile Web vs Native Apps • Honestly? We‟re playing both sides… • Not sure which is best as both proving to be a success • It appears there‟s confidence in the mobile buying process, we have 10 years of education on the web to thank for that. • „Little and often‟ can be „big and often‟ too… • However, current payment methods are uncomfortable to use for both retailer or customer…
  • 12. In conclusion: Things to consider when integrating your mobile channel: • Gain buy-in right from the top, it will ease integration • Understand who your customers are, it will enable you to make the right choice of platform • Research what they want, it will help define & focus your first app • If native app based, build for the App Stores where people have a propensity to consume apps • If the app is transactional, carefully research payment options
  • 13. Thank you Ed Hodges ed@originmobile.com @edward_hodges