Tesco has had huge success integrating mobile commerce (m-commerce) into its business strategy over the last few years. It started by making mobile a core strategy in 2010, building an in-house team to develop apps for multiple platforms. Recent results show large app download numbers and the rollout of several successful apps. Research found that customers wanted more convenient, quick grocery shopping across devices. Tesco is now exploring different mobile and app experiences, like more immersive iPad apps and quick shopping on mobile web, to transform grocery shopping into a more effortless, frequent process.

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