Many companies find it difficult to decide between developing custom software and buying commercially available software. Custom-built software is made to meet particular requirements. On the other hand, pre-made software is less expensive and saves time. Hence, the dilemma.
This is why understanding custom software advantages and disadvantages is necessary. By doing this, you can weigh the advantages and disadvantages to determine whether or not customized solutions are appropriate for your overall business needs.
You can choose the best option for your brand using certain prerequisites. This includes the size of your organization, the difficulty of your work, the types of customers you serve, your plans for scaling up, and the profitability of the solution.
In this article, we’ll discuss the pros and cons of bespoke software. But first, let's examine what custom software entails and why business leaders should give careful consideration to this choice.
What Does Custom Software Mean?
The process of developing custom-built solutions involves creating, designing, launching, and maintaining applications specifically for a set of end-users, functionalities, or brands. Comparatively, commercial off-the-shelf software (COTS) is a tailored solution with features adapted to generic market needs.
Businesses occasionally require specialized solutions to handle challenges peculiar to their processes or sector. While it may be easier to deploy, COTS just doesn’t solve those problems.
This is why bespoke software has become popular for small-scale businesses and enterprises. However, there are many more custom software benefits beyond customization.
Advantages of Custom Software
Are you planning to solve a problem in your market? Building a custom-made solution might be your best chance. Below are some benefits of custom software development:
Personalized Solution for Your Brand Only
This is one of the notable advantages of custom-made software over off-the-shelf software. Bespoke solutions allow you to build exactly what your business wants or needs.
This means you can solve a specific problem rather than respond to a generic market. As such, you will differentiate your business and have a competitive edge. You will also have full control over the software, meaning you can make changes at any time, add key features, and implement customer feedback.
More Customer Personalization
The modern user wants a personalized experience, not a generic-looking service. In fact, 80% of customers are more likely to patronize a business that provides a tailored experience. This is because customers want to feel like they’re being treated as a person.
With customized software development, you can provide more personalized solutions and add value to the business-customer relationship. This is bound to increase customer loyalty, retention, and satisfaction.
Better Return on Investment
Although high cost is one of the disadvantages of custom-made software, there is a better ROI in the long run. You won’t have to pay for unnecessary hardware or pointless features you don’t need. If your software is worth the value, it’s a smart investment regardless of cost.
Scalability and Flexibility
Every business wants to grow. However, using off-the-shelf solutions is as good as setting yourself up to remain stagnant for a long time.
Scaling ready-made solutions to meet company growth or new market demands is almost impossible. They can't be manipulated at will, and you may infringe licensing contracts if you do.
However, custom software development grows with your business to meet future needs and requirements. You can make changes at any time based on customer feedback, upgrade based on emerging technologies, and conduct regular maintenance.
Seamless Integration
If your business has existing tools or technologies, building custom software facilitates seamless integration. You might want all business systems to communicate with one another or need to create interfaces that make data exchange smoother.
These functionalities are often challenging to find in a ready-built tool, especially due to arbitrary APIs. However, this compatibility can be included in a custom-made application. Although there may be some alternatives for off-the-shelf software to merge with other programs, this integration may not be as seamless as you might prefer.
Enhanced Security
Since you’re building from scratch, you have control over software security by creating it in. Off-the-shelf software is notoriously easy to hack because they use open-source code and are available to everyone. This means attackers already know the vulnerabilities of such software.
Create high-end software solutions for your company with Intellectsoft
On the other hand, custom-made software is a closed-source project. In addition, your developers can observe secure DevOps even before writing the first line of code.
Improved Software Support
Custom software has the assurance of a reliable technical support team involved during the development life cycle. They can deal with any problem because they are familiar with your software.
You'll get a swifter response and resolution time as long as you include Service Level Agreements (SLAs) in your contracts.
Note that support is usually out of your hands with ready-made solutions.
Disadvantages of Custom-Made Software
Bespoke software solutions aren’t all roses. There are a few drawbacks to note before you begin development.
Let’s look at the disadvantages of custom software:
High Upfront Cost
Perhaps the biggest flip side to bespoke software is the initial investment. Developing customized software can be expensive because you're starting from scratch.
While this upfront cost may yield better ROI in the long run, it can be challenging for certain organizations without sufficient finance.
However, the increased productivity your employees will experience, the competitive edge for your business, and the personalization for your customers will rapidly compensate for the expenditure.
Longer Time-to-Market
Custom software can take time to develop and deploy into the market. This can be a problem for businesses that want to get a solution into the market quickly. Depending on your needs and project specifications, it takes around 4-9 months while off-the-shelf software is ready to use.
Bespoke software requires organizations to invest time into providing specific requirements to the outsourcing vendor or in-house development team.
Time will also be dedicated to developing and testing software from a user's perspective. This may include multiple iterations and bug fixes before getting the desired results.
Risk of Choosing the Wrong Vendor
There is the risk of choosing a wrong outsourcing company to develop your custom software. Unfortunately, picking an unprofessional vendor might cost you even more. This is because you would have invested time and money into a project that won’t be completed or won’t be built to satisfaction.
Choosing a reliable software development partner to outsource your project is essential for the best outcomes.
Why Choose Intellectsoft for Custom Software Development
Intellectsoft is a best-in-class software development company with over 16 years of experience in custom software development across different industries. We have a track record of the world’s leading enterprises and Fortune 500 companies.
At Intellectsoft, our professional services cover software engineering, consulting, and outsourcing. We understand that pricing can be a concern in bespoke software development. As such, we provide a competitive and reasonable pricing model that fits your budget and business needs.
We consider time-to-market, so we provide a dedicated team for your project. Our team of skilled developers is happy to get to work immediately after signing a contract.
You can also check out our client success stories involving small-scale businesses to enterprises. We have provided custom-made solutions to companies in oil & gas, transportation, entertainment, fintech, construction, tourism, and healthcare, among many others.
Final Words
Each organization has unique requirements. Most of them are aware that commercial software won't live up to their expectations or solve the problems their customers face.
You know your customers’ pain points more than anyone because they are the center of your business. Once you understand the problems your customers face, you’ll be able to develop custom software solutions that address those issues.
As a rule of thumb, you should have software that can accommodate your company's requirements, which is not always the case with off-the-shelf solutions. This is why businesses hire a development team to build unique applications that satisfy their needs and requirements.
In addition, bespoke software provides customers with more personalization. This is likely to generate higher customer satisfaction, loyalty, and retention.
Ultimately, the pros of customized software outweigh the cons. Building bespoke software is your best chance to succeed if you want a competitive advantage and make a real difference in the market.
Do you have a big idea in mind? Then you should get the best hands for the job. Our team of experts at Intellectsoft is more than happy to discuss your project.
Regardless of industry or company size, you can trust us to successfully implement your business requirements. Contact us today, and our managers will answer any questions you may have.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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