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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:

• 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

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

ed@originmobile.com

@edward_hodges

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