Tesco\'s Journey into Mobile Commerce

Tesco’s journey into m-commerce

Ed Hodges

Mobile Consultant, Tesco

• 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

How we started integrating m-commerce:

• 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

Last 6 months results:

Ok, so we’re going to do mobile.

How do we grow beyond the existing online strategy?

• 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!

Research: From the Current Online Grocery Shop…

Source: Nick Lansley, Tesco R&D

• 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.

… to the PERFECT Online Grocery Shop

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?We’re exploring different styles across different platforms.

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…

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

In conclusion:

Thank you

Ed Hodges

[email protected]

@edward_hodges