Technologies constantly develop and enhance, thus influencing other fields of human activity, including business, marketing, healthcare, education, etc. More and more enterprises start working on strategies and ways to begin enterprise digital transformation. Some of the enterprises have already started the implementation of digital technologies in order to keep on the top positions in the field.
The latest business, technological, and marketing trends make it inevitable for enterprises to initiate a digital transformation process. Digital transformation of the enterprise means the implementation of digital solutions into the systems of the company. There is a number of technologies that are already used and change the image of the business world. Among these technologies, there is IoT (Internet of Things), AI (Artificial Intelligence), ML (Machine Learning), AR (Augmented Reality), VR (Virtual Reality), Cloud Computing, Blockchain. All of them enhance the workflow of the company, its organization, communication, as well as service delivery to the customers.
The digital transformation enterprise process cannot be done overnight. It is time- and resource-consuming, but the results worth it. The implementation of the technologies can bring a lot of advantages for the company, its employees, and customers. Let’s view them in detail.
Enterprise Digital Transformation: The Advantages
Reorganization of the processes internally and externally due to the digital enterprise transformation will have certain benefits for the companies that come along with the changes. We are going to highlight the top 5 advantages of the digital transformation for enterprises.
Enterprise EfficiencyThe automation of the processes because of digital transformation will lead to the greater overall efficiency of the enterprise. The technologies like AI and ML can process data quickly, provide better insights, thus giving a possibility for the company to deliver more efficient services to the customers.
Better ProductivityThe implementation of smart technological solutions that sustain the digital transformation of the enterprises leads to better productivity. The solutions will help you automate certain processes within the company by minimizing the manual work, cut costs, facilitate the work of the employees, and enhance service delivery. For instance, less manual work will result in fewer mistakes, which leads to better services from the company.
Employee EmpowermentWhen the company starts its digital transformation process, it is important to keep everyone in the loop and spend time on training of the employees. It is necessary for everyone to know about the changes within the system and be able to conduct the work in the proper way. Improvement of the set of skills of your employees will motivate them to work better, give them a chance to show their creativity and share their innovative ideas. By educating the staff, the company, first of all, adds value to its services, thus offers better facilities and increases client satisfaction.
Enhanced Customer ExperienceThe above-listed advantages result in better customer satisfaction and high-quality experience. The better services you provide, the bigger the number of clients will return to use your services on a regular basis. Transparent transactions and quick delivery of the services is what clients expect from the enterprises. The proper usage of technological solutions for your benefit will help you attract more clients to the services you offer.
Increased RevenueAs a result, digital transformation will help you increase revenue. It’s possible thanks to the reduction of the costs spent on the maintenance of the business, automation of the processes, and better customer experience. The more hearts you win with your services, the more people will choose you over other companies.
These benefits are the top ones, but its number is bigger, and we also can highlight higher security regarding both the company and its clients. Among them are better resource management; digital culture encouragement; possibility to create digital products/services; more efficient data analysis, etc.
Enterprises that thrive to get all these benefits from the digital transformation should create a detailed enterprise digital transformation strategy.
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A strategy is an essential part of every process. If there is no solid strategy approved by all the parties involved or it is not shared with all the departments of the enterprise, consider you already failed in digital enterprise transformation.
A strategy is a detailed plan on the process of achievement of the long-term goals. It is a document that will highlight all the steps of the process, their possible outcomes, and expected results. Also, it is important that enterprise digital strategy is developed by the board of the enterprise leaders and includes all the departments.
A successful strategy consists of the following elements:
Idea: no idea, no changes. If you want to keep the enterprise a leader in the field, survive the competition or maintain a successful reputation, you should come up with the idea that promotes digital transformation processes. Analyze the current state of affairs, the market, your position in it, think of the ways to enhance your business.
Total involvement: once you have a clear and defined idea, it’s time to share it with the board and make every department involved in the process. Listen to their ideas, take them into consideration, and together work out the most suitable scheme for digital transformation for the enterprise. As a result, everyone should know their role in the process, responsibilities, and work in coherence to achieve desired results.
Technology: choose the relevant technology that will take you on the journey to digital transformation. If there are some doubts or challenges with this part, you can consult with the third party and find ways to enhance the efficiency of the enterprise.
Tests: make sure that your team is aware of the possible risks and is ready to run pilot tests. Every step and its result should be documented in order to minimize risks and move successfully to your goals.
Change: if you are on the digital transformation path, an enterprise should be ready to change every day. The transformation requires constant analysis of the processes and data received in order to enhance services and find new opportunities for the business.
What is a Digital Enterprise Transformation Roadmap?
Once the enterprise has an enterprise digital transformation strategy, it’s time to build a roadmap to achieve the expected goals. It is a unique plan that will coordinate the enterprise on its way to digital transformation. Each stage of the transformation process should have a clear roadmap that consists of smaller steps. In its turn, every roadmap consists of the three main stages.
Stage 1: Defining Value
The enterprise should analyze its position on the market, involve every department in the process of digitalization and define small, and big goals it wants to achieve. It follows that every goal that leads to the overall enterprise transformation should be divided into smaller steps that add value to the ongoing process.
Stage 2: Launching and Maintaining
Once all the resources are collected and accordingly allocated, the enterprise can launch the first project. Then test it, collect data, compare the expected results and the real ones, and maintain new innovations or add changes if required. At the same time, the team involved in the process should constantly upgrade its skills and enhance their knowledge in order to lead the enterprise to the transformation successfully.
Stage 3: Scaling Up
When the first projects are launched, and you start to see positive outcomes, it’s time to scale up the process and move further. Upgrade the technologies used, add new features or services, as well as enhance the skills of everyone working for the enterprise. The digital transformation itself means constant change and improvement, so everyone involved in the process should be ready to adapt quickly and effectively in order to reach higher goals.
Overall, the digital transformation enterprise can view as a difficult way that requires a lot of changes and resources, but as we can see, it has a number of benefits. These changes will enhance the work of the employees, deliver better services to the customers, and as a result, bring more revenue for the company. Enterprise leaders should wisely plan a strategy for the organization, describe every step that should be taken, think of the possible outcomes in order to succeed with the transformation process. The path is rather long and requires a lot of time effort, but it is a way to future prosperity and a chance to survive the ongoing competition.
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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