According to the recent research by Statista, in 2020 the eCommerce sales worldwide reached their new year-over-year record, amounting to around 4.3 trillion US dollars.
Needless to add, these numbers will only grow in the future and are expected to reach 5.4 trillion US dollars in 2022.
Among the most common reasons that have forced various businesses from different industries to improve their online presence, marketers usually mention digital transformation and the recent pandemic hit in 2020.
However, along with eCommerce’s rising popularity, it still has a lot of vulnerabilities that make customers doubt its reliability. For instance, a large survey by PwC has shown that over 47% of organizations have encountered fraud in the past 24 months.
But what are the most common types of these security vulnerabilities and how can they be prevented in eCommerce? Intellectsoft experts are ready to share the best practices!
What Is a Security Vulnerability in eCommerce?
In the eCommerce industry, security vulnerability stands for the weak points of the system that can be easily attacked by scammers or prone to various fraudulent activities for getting money, products, and personal information from clients’ bases for the purpose of profit.
To prevent this, eCommerce units need to test and improve their online systems regularly to detect any security vulnerability (for instance, bugs, system errors, etc.) before scammers can use them for personal gain.
Knowing the basic types of security vulnerabilities can significantly assist in improving eCommerce web systems and applications, prevent cost loss, and prove to your final consumers your business is secure and can be trusted.
What Are the Most Common Types of eCommerce Security Vulnerabilities?
As we have already discussed, being aware of the most common security vulnerabilities in eCommerce will help you make sure you won’t lose any investments, or, what is even more important — your authority and customers’ trust.
That is why let’s now dive into the typical eCommerce security threats you should definitely be aware of when developing your eCommerce platform.
1. Financial Frauds or Payment Frauds
This type is one of the most typical for eCommerce and dates back to the very first attempts of the businesses going online. Often, scammers used to make unauthorized transactions and immediately wipe out the trails. Or else, they can use the fake emails, accounts, and names, and even IP addresses to look like the real customer.
After they have requested a refund with, for instance, a fake screenshot, most eCommerce platforms basically give them money for nothing, especially if they’re not aware of this financial trick.
With being reported in over 70% of all attacks, payment frauds are still one of the top reasons why companies experience huge cost losses.
How to Solve the Problem
Make sure your eCommerce platform cooperates only with verified and authoritative payment systems. Additionally, some companies make it possible to conduct a transaction only after logging in to the individual account before any purchase, which minimizes the risks of financial fraud and prevents common security vulnerabilities as well.
2. Spam Attacks
Though emails are considered to be the most powerful marketing channel for eCommerce, they are also the typical web security vulnerabilities hackers can easily take advantage of.
The random comments left on the product pages, under your blog posts, or the contact forms can not only harm the customers’ trust but also slow down your platform as well.
Needless to say, that one infected link left by a spammer is more than enough to affect your site’s speed, provide access to personal customer information and other sensitive data.
Additionally, the spamming activity can become a serious threat to the customers’ security as well, which can easily undermine your site’s credibility.
How to Solve the Problem
Use anti-spamming software for security vulnerabilities detection and its successful removal. Such software can easily spot the infected URLs and safely remove them from your site so that no one can see them.
Typically, such software type uses various algorithms to filter the comments and detect the computer-generated links which can be potentially dangerous for your site’s security, and even provide you with the details about the email of the actual sender if it is possible.
3. Triangulation Fraud
One of the most recent and large-scale security vulnerabilities detected nowadays is triangulation fraud. This stands for creating a fake site with an identical interface and products at a cheaper price.
After the customers complete the transaction, they basically donate the money to the criminals, as the products they wanted to purchase simply don’t exist and never be shipped to them.
The reason why this type of fraud is harmful to your eCommerce platform is that you can lose your new clients, loyal customers, and their trust as well: no one wants to go back to the site (even with the slight differences in a brand’s name or interface) after being cheated there at once.
How to Solve the Problem
Basically, no one can stop scammers from creating a platform that looks just like your online store. However, it’s possible to prevent your customers from being fooled by simply informing them about this issue and pointing out the real domain of your eCommerce platform.
Even a simple information letter can in fact prevent your customers from money loss and also strengthen your store’s authority as well.
4. Web Application Security Vulnerabilities
At present, the level of competition in different business areas makes companies do their best to meet all the customers’ needs. For online stores, web applications are simply a must to attract more clients to their platform.
For instance, it’s essential for eCommerce clients to create the wish lists of the products they want to buy next, look for the featured products, check the special offers and get the personalized list of products they are probably interested in.
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The use of smartphones has only enhanced the demand for web app creation. However, having created one is still not that easy as to maintain and update it regularly.
Developers should not only focus on the customer experience and comfortable interface but also on the software security vulnerabilities as well. Having omitted this stage of web app development, you can easily give a green light to the criminals for the attack. They can easily play with fake transactions and refunds, gift cards, and even the critical data of your eCommerce platform.
How to Solve the Problem
Find a dedicated team of developers you can trust, and ask them to conduct the app checking for the bugs, error codes, and other software issues that need to be fixed.
Additionally, professional app developers can try various scenarios of hacking, such as cookie poisoning, remote command execution, cross-site scripting, etc to check the specific software security vulnerability of your app and easily resolve it.
5. Bot Attack
Some criminals also attack eCommerce sites with bots, that basically act like real users and can hardly be detected by the security system.
This is why bot attack is considered to be one of the common security vulnerabilities you should always keep in mind. Usually, you can check the bot traffic in the site’s analytics and get the records about the exact time and details of their behavior.
However, bots are not just fake users that can boost your traffic to slow down the site’s speed. Instead, they can also steal the personal information of your customers, record their log-in credentials and bank information, manipulate the products’ prices and randomly block them, thus making your eCommerce platform less secure and user-friendly.
How to Solve the Problem
To make sure your site is secure enough and won’t go down during any of the hacking attempts, always introduce a CAPTCHA test for critical actions such as logging in or products’ purchase.
In addition, track the traffic and block the one generated from the suspicious sources, analyze the failed log-in attempts and protect your mobile apps.
Large companies also consider employing bot migration software - the perfect solution for minimizing IT security vulnerabilities.
6. Brute Force Attacks
Brute-force attacks refer to the hacking method of guessing the system passwords. So far that’s one of the most dangerous security vulnerability types that can attack your online store’s panel and attempt to get full access to it.
During this attack, the various programs and complex algorithms are used to generate any possible combination to crack your site’s password. After that, any scenario is possible: criminals can ask for the reward or steal the client’s personal data, send spam offers, etc — all they planned to do since the site owner has lost access to the admin panel.
How to Solve the Problem
This attack can’t be predicted but can be prevented instead. For minimizing the site’s security vulnerability, developers recommend using strong, complex passwords and do not store them on your digital files, computer documents, browsers, etc.
In addition to that, you can protect the site by changing the password regularly (for instance, on a monthly basis or once a quarter).
Basic Principles of the eCommerce Security
After we have covered the typical security vulnerability examples and the ways they can be solved and prevented, it’s time to figure out the 4 essential basics you should know for ensuring your eCommerce security.
#1 Privacy
It’s pivotal to secure any activity that can lead to the customer data leak. Remember, that the data entrusted to you by the clients can never be accessed by third parties or shared with them as well.
To follow this statement, a seller should take the necessary measures related to the anti-virus, firewall, data encryption, and other software to protect critical data.
#2 Authentication
This means that eCommerce security requires both the seller and the customer to be real, as well as both of them should act under their personal names.
In some cases, clients should give proof of identity, or provide the bank information needed for the successful transaction payment. If you’re unable to organize this process as a seller, feel free to hire an expert to figure out how to make this correct and safe.
#3 Integrity
The eCommerce concept of integrity implies using the customer information without changing it, but as it was given by your customer instead. By altering any part of the client’s personal data you can simply lose confidence in the security and integrity of the online enterprise.
#4 Non-Repudiation
This particular aspect refers to the inability of the parties to deny their actions in the transaction. Thus, each of the parties should pass the transaction part they have initiated, and can’t deny any signature, email, or purchase.
The non-repudiation principle is needed to ensure that two parties have confirmed the transaction actions from their side and are ready to complete them.
All these eCommerce principles stated above are also as important as the software security vulnerability is. By taking all the needed measures to prevent the security vulnerability, you’re also making sure both parties (you and your customers) are secure, and can easily share the benefits.
Conclusion
To sum up, there are various types of security vulnerabilities the eCommerce owners should keep in mind for their business’ successful development.
Being aware of the most common practices used for preventing fraudulent activities can not only significantly increase the ROI, but also ensure your online store, its customers, and personal data are always safe.
Using the retail applications and software for eCommerce, you can significantly minimize the chance of any security vulnerability appearing, and save up lots of time, costs, and resources. What else can be better?
Our team of developers, at Intellectsoft, empowers eCommerce companies with innovative solutions that help to ensure strong security and a high level of services provided. Is your organization looking for professional assistance?
Talk to our experts right now and let’s take your business to the next level together!
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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