Coronavirus highlights the need to transform traditional retail industry approaches to doing business. Especially when the “world’s factory”, China, is itself spiraling in the confusing and complex global reaction. COVID-19 forces the retail industry to rethink and transform their models digitally. And the real question is, how exactly should it respond to immediate change?
In brief:
Retailers are going to overthink how they use technologies to find new ways to get revenue and build up innovative business models amid pandemic.
Retail digital transformation has already started in some ways, and some companies already get some advantages from the changes they have made.
Right now, fulfillment and last-mile execution, transparency, workforce, and pricing — are four key areas COVID-19 hit the most. This is where retail CIOs must focus their attention and bring the full capacity of digitalization.
What is Digital Transformation in Retail? Inevitable Changes of the Future
Digital transformation is penetrating into every sphere and industry we know today, starting with finance, banking, mass media, education, manufacturing, healthcare, etc. Companies go digital to enhance their services and offered facilities in order to bring up the level of satisfaction of their customers. The whole idea behind it is based on the customers’ needs and involves other aspects like process organization within the company, its employees, external communication, and technologies used.
The same goes for digital transformation in retail. Retailers are going to overthink how they use technologies to find new ways to get revenue and build up innovative business models. It follows that as technologies and digital tools evolve, they are going to have a great influence not only on the services provided by the company, but also its inner culture, management, organization of the workflow.
In addition to this, it gives employees a number of opportunities, as they master new skills and obtain valuable knowledge. Overall, it’s a long-term process (life-circle) where one change leads to another and influences other components involved in the digital transformation process.
Digital Transformation in Retail: Benefits
The process of retail digital transformation is not an easy one, as for the other industries. But if you have a well-thought strategy in your hands and clearly see the results you aim for, then it’s worth putting your foot on this path, as digital transformation comes not only with challenges but brings a number of advantages.
Easier Connection
Digital transformation makes it easier for retailers and their customers to connect and communicate via social media accounts, websites, chatbots, mobile apps, etc.
Smoother Operations
The implementation of Cloud technologies will improve operations within the company as the external ones, reduce the time spent on sharing information with the customers, thus improving client support.
More Convenient
Thanks to the AI (Artificial Intelligence) tools, now customers can shop without cashiers. AI automation of some processes will enhance the customer experience. Also, it enables retailers to sell their products not only in physical stores but via websites or mobile apps.
Higher Revenue
Digital transformation is retail that enables providers to have more than one channel of income, thus gives a chance to reach a wider target audience.
Better Customer Experience
All the changes that come with digital transformation influence customer experience and make it better. Technical tools facilitate the work of the employees, make services quicker and more efficient, thus customers get high-quality services, their journey of buying products becomes a more pleasant one, etc. As the whole concept of digital transformation is customer-centered, they get the most but help your business become better and prosper.
Digital Transformation in Retail Banking
Retail digital transformation also takes place in banking, as it is a part of the industry. Retail banks should take advantage of the customer data they get. It is especially important for their digital transformation journey, as it was already said, the process is customer-centered. The data that banks have access to can be used as a base for innovation and solutions that can enhance customer experience, make it more personalized.
Tools like IoT, AI, Blockchain, etc. help to analyze data in a sufficient way, automate some of the processes, as well as reduce the number of paperwork. For instance, thanks to online banking, people now don’t have to line up at the bank office to get answers to their issues or provide payments. In addition to this, technical tools make services more easy-to-use, thus improve customer experience and attract new customers.
In order to succeed and survive the competition with other retail banks or platforms that provide similar services, banks should take into consideration the security issue. Security is of a high priority as customers trust with their money and want their funds to be safe. Online banking requires high-quality tools to protect data, and thanks to digital technologies we have today, it’s possible.
Retail Digital Transformation Trends for Post-COVID-19 Times
Retail digital transformation has already started in some ways, and some companies already get some advantages from the changes they have made. Still, as we know the process of digital transformation is not a short-term thing, as we have a constant change of the technologies, innovative solutions occur regularly, and in order to keep up a track of the latest trends, we have come up with the list of top ones.
Mobile Applications
A mobile app is a great connector between customer and retailer’s physical shop. Customers can check on the products, watch and read reviews, etc. In addition to this, they can easily contact the support group in case of inquiries.
If you still do not have a mobile application for the store, you should consider this option, as it has a great number of advantages, facilitates purchasing, and brings you closer to your customers. Also, mobile apps are a good start for further development, as it is possible to add new features and enhance the services you provide.
Augmented Reality (AR)
AR in the digital transformation of the services is a great tool that allows customers to try and view things without leaving their homes.
For instance, IKEA came up with an awesome idea of letting its customers choose the best pieces of furniture by using their app. You just have to point a camera to the right place at home, and the app will offer you options that suit your interior. Another example is Toyota, where you can try different cars before making any decisions.
Virtual Reality (VR)
Virtual Reality technology has great potential for the retail industry to develop and grow. This tech solution will definitely enhance customer experience, as they will be able to check cars, homes, etc. without even stepping inside of it.
Retail Digital Transformation Challenges: Managing risk and disruption
Digital transformation contains one more meaning behind this term, it’s — to be adaptive to the changes. It’s not a static process, so you cannot 100% predict further steps.
But the company can have a thoroughly detailed strategy that will help them to keep up on the path to digital transformation. Retailers should find ways to satisfy the needs of customers who have different preferences and expectations. It follows that businesses should learn to be agile and flexible. This is not only about customers, but the inner-company organization of the processes, communication between employees, departments, and customers, etc.
Another challenge will be to figure out which technologies should be used to turn your ideas into reality. The company should have professional IT specialists at their service who can consult, give their expert opinion, and complete projects within stated time frames. It’s possible to hire individual professionals with your own efforts, but also you can use outsourcing.
Also, retailers might face challenges with data analysis. There are numerous channels that help them get information about customers, but this data should be properly analyzed. Luckily, nowadays, there is access to numerous tools that can be of great help in this matter as personal data gives you a chance to learn more about your customers thus giving you a chance to provide more personalized offers and enhance their experience with your services and products.
Retail Digital Transformation Market: Going Digital
The process of digital transformation has already started and has an enormous influence on the retail market. New channels of revenue and deep data analysis thanks to the technologies we have today, make it possible for the industry to grow. For now, we know for sure that the process won’t stop, and we will see a major boost in the retail market thanks to digital tools and technologies.
The only thing to do is to set up a strategy and work towards your goals in order to enhance customer’s experience, optimize the inner-company processes, make shopping easier, and more fun. Nowadays, we have everything to make it happen.
COVID-19: Helping Retail Conquer Digital Transformation
Depending on the countries, categories, and customers’ mixes, the impact of the novel coronavirus is very different for every retailer. Right now, fulfillment and last-mile execution, transparency, workforce, and pricing — are four key areas COVID-19 hit the most. This is where retail CIOs must focus their attention and bring the full capacity of digitalization.
We, at Intellectsoft, empower companies and their retail workforce with digital transformation solutions and data-driven insights. Are you and your organization ready to shift the mindsets and get the most out of innovations?
Talk to our experts and find out more about the topic and how your business or project can start benefiting from it today!
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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