The COVID-19 pandemic has already accelerated diverse technology implementation, and the insurance industry is not an exception.
Companies are now interested in fast and pragmatic solutions, innovative approaches, and products that can boost customer engagement as well as overcome the serious challenges in insurance.
The AI and cloud computing services implementation has already got their own niche in this area. And, when the first one is only starting its path, the cloud computing technology has been widely utilized for improving the traditional insurance model so far.
In general, it is used for adjusting the insurance industry to the “new normal” across 5 stages - resolve, resilience, return, reimagination and reform.
But what makes cloud computing for insurance industry so important? Let’s get that covered!
Definition and Potential of Cloud Computing
In general, cloud computing is the delivery of various services through the Internet. Being utilized for the insurance industry, cloud computing solutions provide the list of advanced capabilities for supporting different business processes, according to Deloitte.
Its application allows to reduce technical debt, minimize expenses, improve the workflow and optimize the cost-management.
In fact, the potential of the cloud computing services allows optimizing various processes for the insurance companies:
create a reliable policy administration, effectively process the requests and provide an outstanding UX for the company and its customers as well;
boost the company’s ROI by implementing a universal secure platform that can process and transmit the data more effectively, thus increasing the workflow efficiency;
reduce the expenses and optimize the business with workflow automation by processing the claims, billing, and underwriting;
increase the quality of the insurance services through improving the data quality and data analytics, as well as logical group implementation.
These advanced opportunities offered by cloud computing services can not only greatly improve the insurance services quality but also open up new solutions for the business optimization processes.
Benefits of Cloud Computing for the Insurance Industry
After covering the basic purposes of cloud computing, it’s time to discover the main benefits your insurance business can get with its implementation.
Data Management
For most industries, data becomes one of the most valuable parts of the business. In the insurance industry, data is widely utilized for identification, structuring, analysis, billing, and managing different aspects of the company’s workflow.
Cloud computing allows interacting with any data within one system, which is highly appreciated for both large and small companies.
Furthermore, the cloud computing system can greatly optimize both internal and external data management for insurance companies.
According to McKinsey, external data requires a high level of security, while internal data implies various kinds of organizing and structuring to provide the flexibility for creating the new insights and capabilities.
All these aspects become an easy yet affordable solution for insurance with cloud computing employment.
Cost Efficiency
One of the major cloud computing benefits is the ability to reduce regular business expenses, which is quite important for any company.
The adoption of cloud computing services allows to facilitate and optimize both internal and external processes with significant reduction of the investments needed for storage and operating the data, establishing an automized workflow, etc.
Rapid Deployment and Flexibility
Unlike most IT innovations, insurance cloud computing takes a little time for adoption and easy integration into the business workflow.
This means companies don’t need to stop the workflow even for a while. Furthermore, there are different options available for multiple users, so the insurance business owners can comfortably cooperate within one working environment, share the corporate information and important data, and have 24/7 access to any document required for their successful performance.
Better KPI
Needless to say, that workflow automation and optimization can also benefit the employee’s productivity. With the cloud computing services employment, companies can significantly reduce the amount of paperwork, and optimize the data sharing for the workers.
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Additionally, cloud computing in insurance simplifies the access to corporate data and also offers a holistic view to understanding consumer needs.
Advanced Customer Experience
The cloud computing implementation in insurance allows not only understanding the customer needs but also making critical changes to improve the insurance services quality.
For instance, the insurers can access and analyze the latest trends popular among the different customers worldwide.
Then, with having all these trends adapted to your technology, it’s much easier to create a personalized experience for different audiences, improve the customer retention rate and enlarge the target audience as well.
Risk Management
It goes without saying that any company needs not only to improve its services and work on eliminating its weak points but also minimize the risks that can have an impact on the company’s internal operational processes.
According to PwC, the value of risk management in insurance can greatly improve the business strategy, optimize the goals for the company, help to reduce the probable losses, enhance the feedback from the product development and performance, etc.
Cloud computing enables the integrating of risk data, various assessment reports, and risk indicators within one system that assists companies in protecting the company’s data from third parties intervention or specific data breaches.
Types of Cloud Computing in the Insurance and How to Implement This Technology
Along with the benefits of cloud computing, it’s also critical to understand the basic types of cloud computing that can be implemented in the insurance industry and provide different services.
Private Cloud. This is the software used for organizing some internal processes of the company and allows to secure the data transmitted in it. The main features of it are flexibility and private requirements that can’t be influenced by the legal and security requirements.
Public Cloud. This type is widely used for providing online services to clients on the web. Thanks to the computing, storage, and networking services availability, this service is utilized by the list of large corporations such as Google and Amazon, yet can be really beneficial for the insurance services. Because of its high popularity and affordability, that can be a great solution for companies who want to pay only for the usage of CPU cycles, storage, or bandwidth.
Community Cloud. This one indicates the cloud services that have a high level of privacy security and compliance while offering a shared infrastructure for the defined community of users.
Hybrid Cloud. One of the most multifunctional cloud services that can be used both for internal and external processes, offers pretty high data security and can be adapted to the main needs and requirements of a company.
In case you have decided to employ the cloud computing solution to the insurance business, it’s still important to know the best practices of this process.
The most critical of them include understanding the basic requirements and needs of your organization, its main goals, and expectations from the cloud computing services.
Additionally, it’s pivotal to define the value and measures of cloud computing employment as well as decide on how to track the changes of the workflow optimization.
Establish a clear structure of the migration process and choose the person in charge of the migration process, which can help you to keep an eye on the critical processes and detect any issues if there are some.
Last but not least, make sure to pick up a reliable IT partner that can assist you in this process and consult in any questions regarding cloud computing for the insurance.
These simple yet effective methods will help you implement the cloud computing services correctly and get the most of their utilization.
Conclusion
Cloud-based computing services have become a great option for the different processes optimization for the insurance industry.
With the assistance of custom insurance software development services, it is much easier to reach higher productivity, improve customer experience, increase the company ROI and provide simplified access to any data within your company.
Our team of developers at Intellectsoft empowers companies from various industries and verticals with innovative solutions and approaches to enhance their business performance and optimize the list of internal processes in it. Are you and your organization looking for some?
Feel free to talk to our experts to discover more about any question and learn how your business can start benefiting from innovative technologies 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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