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Tesco\'s Journey into Mobile Commerce
- 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: • 2 million 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
Editor's Notes
- Introduce myself what I do for TescoTesco as a case study showing how m-commerce was set up and integrated into the overall online strategy to drive salesEnd will draw conclusions which hopefully will be useful
- Core Strategy - Important that buy-in was from the top, enabled the team to cut through some processes to get kick-started.M-Commerce part of greater holistic journey to improve current online grocery shop.
- Let’s take a step back.We knew we were going to ‘do’ mobile so needed a direction / strategy… Which started with research.
- Before integrating m-commerce into the rest of Tesco we needed to understand current thinking from customers.Grocery home shopping is what Tesco is “famous” for – so what wereTesco.com’s customers thinking when they imagined their perfect online shopping experience when it came to grocery home shopping. We asked them and they came up with these issues.So if we want to make our service “better” for customers, then we have to take this slide and stand it on its head to create our PERFECT grocery shop…
- So we took our list of grocery shopping issues and our three groups, and created the outline of the PERFECT online grocery shop.We saw that we had to move customers from a from long-and-labourious shopping to little-and-often shopping.Our inspiration was the word EFFORTLESS! How could we take grocery shopping on a road to ‘effortless’ shopping and yet still inspire those groundhogs to order food that they would find more satisfactory, inspire gatherers to think more about food, and really engage those hunters?We also realised that we, Tesco, may not have all the answers – wouldn’t it be great to employ the ‘wisdom of the crowds’ and get third party developers to really help us improve the grocery home shopping experience for customers. Effortless grocery shopping? Wow, what a challenge!
- We’ve built mobile applications that can do everything from ‘capture the moment’ right through to a full grocery shop:Adding the barcode scanner enabled customers to interact with the real product and order it with the least number of clicks. This ease of use does 2 things:It retains customer loyalty as their weekly shopping order is constantly with them sitting in their pocket waiting to be added to or bought at any time.Creating a simple 1-click solution with a delightful app encourages incremental usageIt’s this increase in basket size and extended loyalty that is helping drive the integration of m-commerce further into Tesco.
- To build upon the iPhone’s success we’re exploring different styles across different platforms.WP7’s ‘scan’ across a page from left to right enabled us to create a different experience from the iPhone and judge the pros & cons of bothHowever, the core journey remains the same (keeps costs down and enables us to reuse engineering principles)
- Designed to be a more immersive experience.Offers inspiration and drives curiosity across recipesBUT: we’ve not forgotten the buying process, all ingredients are added to your basket with 1 touch.Basket sizing is likely to be bigger which is again, is helping drive the importance of mobile and it’s integration into Tesco.
- Mobile isn’t just for smartphonesAny customerwith a handset’s browser should be able to engage with the mobile shopping philosophyHowever, there’s a recognition that it’s not as immersive or fast and doesn’t offer quite the same level of functionality (at least today)
- ‘Big and Often’ – Not in terms of quantity, but value… Tesco Direct sales include £800 sofas while bought on the movePayment methods – either the cost of using 3rd party 1-click software is prohibitive or the standard merchant way of payments (3D Secure / VBV) cause considerable frustration for customers
- Transactional – if payment done well, the bounce rate will be lower and sales higher. This is always going to be the best way to win over your company and get the mobile channel integrated to your business…