The global forecast by MarketsandMarkets has indicated that the order management market size will grow from $2.3 billion in 2021 to $3.9 billion by 2026 with a compound annual growth rate (CAGR) of 11.2% during this period.
Mainly, this growth is caused by the global rise of the wholesale vertical, including eCommerce and retail, especially after the pandemic hit in 2020 when nearly all the eCommerce businesses have experienced a huge rise in sales and revenue.
At present, it becomes even more obvious: the industry requires more and more innovative digital solutions targeted at business automation and further sales increase.
One of the newest efficient solutions for eCommerce is implementing order management software. This technology not only allows automating the core online business processes but also reduces the manual options for order management.
In this article, we’ll explain what order management software is, its essential features and benefits, and how it can improve your business performance from day one. Let’s get started!
What Is an Order Management System in eCommerce and Retail?
In eCommerce, the order management system (OMS) refers to the software for securely processing client orders across every step of their journeys in an efficient yet cost-effective manner. In other words, it allows delivering the perfect customer services across the brand’s various sales funnels.
With this technology, operators can effectively manage the orders coming from multiple eCommerce channels at a time and use the advanced sale order processing technologies for online orders fulfillment.
For instance, it covers the processes of order routing, shipping label printing, order returns, subscription management, and more - all those that used to be handled via manual updating.
In general, eCommerce order management is responsible for effective product delivery from the time customers add it to the shopping cart till they have received the delivery. Though this process is adapted individually to the specific business needs, the common steps of eCommerce order management process flow consists of the following steps:
eCommerce company receives the order receipt from a customer
The company sales manager enters the order details into the system
The customer gets a notification regarding the order processing
The order is transferred to the eCommerce warehouse/order fulfillment center
The products are packed and prepared for the shipping
The order is shipped according to the information on the shipping labels
The customer receives the order status notification: shipped
The order is delivered due to the preferable address or postal service
Instead of handling all these steps in a separate system and manually filling in the order status data, the order management system allows unifying these processes within a single order fulfillment system to ensure efficient order processing and product delivery.
Does an eCommerce Business Really Need Order Management Software?
The eCommerce order management software is a must-have technology for both small retail businesses and large eCommerce companies.
First of all, it facilitates the order fulfillment process by making it much more streamlined, cost-efficient yet automated. This software minimizes the time needed to prepare the order for shipping.
Besides, it optimizes the overall time needed to deliver the order to your customer, which has a direct impact on the customer experience.
At the same time, the final consumers get up-to-date information about the order status, are less likely to ask for any order information in customer support service, and are way more loyal towards the service: it has a transparent order processing system that clearly states the order delivery info.
For businesses, implementing the order management system allows them to automate and upgrade the key order completion processes. Some types of OMS software even enable tracking the order shipping by integrating with the carrier’s system like FedEx or DHL until the order is delivered.
Main Advantages of Order Management Solutions Implementation
Now that you know what the eCommerce order management software is and whether it’s worth using for retail businesses. Here, we’ll uncover the core benefits of this technology implementation, and whether or not it corresponds to your business developing strategy.
Improves the Delivery Speed
The most critical benefit of the eCommerce order management software is the faster order delivery, which can have a huge impact on the overall customer experience.
According to McKinsey, in recent times the speed of delivery has become equally important to the product price, which makes it an important aspect of building the business competitiveness. In times of a same-day or two-day delivery, consumers simply don’t want to go back to weeks and months of waiting.
That’s where the order management system for eCommerce comes into play: a single order management system can significantly eliminate the time needed for order processing and delivery.
Eliminates the Human Error
With having multiple order management systems for different stages of order fulfilment, it often happens that the worker filled in the wrong data or has chosen a wrong product article when processing the large orders, or else — didn’t send the order invoice to the client. As a result, the eCommerce platform has a poor customer experience and low customer loyalty rate.
The Salesforce research has shown that around 89% of customers are more likely to make another purchase after a positive customer service experience.
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The eCommerce order management solutions allow eliminating human errors with automated order processing. In other words, the lesser the workload, the fewer steps a manager needs to fulfill, the better quality of the services the business will perform as a result.
Enhances the Business Scalability
The eCommerce order management can grow and develop along with your business, and result in a feature-rich omnichannel system. Such management software can be successfully used for multiple platforms and different products and is able to keep the pace and scale along with your business growth.
Enables the Multichannel Management Opportunities
Last but not least, to stay competitive in any eCommerce scope, it’s important to develop an online presence at different sales platforms. For instance, it’s a great opportunity to enhance the business performance with the eCommerce website, popular retail platforms, and social media.
At the same time, with having the orders flow from Facebook, Pinterest, Instagram, and Amazon, it becomes more challenging to track the orders and fulfill them in time.
eCommerce order management software is the right technology for ensuring high-grade customer service for any sales channel yet tracking all the orders within a single system. With the developed order management system, you can also generate the reporting and analyze the sales trends to build a strong and effective business strategy.
Core Features of eCommerce Order Management Software
Setting up the powerful order management in eCommerce implies also the deep analysis of your business goals, pains, and needs. It’s essential to find the most suitable technology that works best for your specific eCommerce project type and is able to optimize its existing performance.
Instead of trying to adapt your eCommerce workflow to the existing software solutions, it’s more efficient for the business owners to develop the brand new eCommerce order management software that will include all the features needed for this type of software. The main features to include in this system are:
Order automation - to facilitate the verification and processing, as well as eliminate the need for manual data entry.
Pre-made templates for the specific order forms - to minimize the time needed to fill in the customer data, preferable delivery methods, order details, and more.
Electronic data archiving and management - to reduce the paperwork and optimize the time needed for the hard copies of invoices, order reports, and receipts.
Inventory management - to keep the sales team always informed about the products in and out of stock, this feature is simply a must for an eCommerce order management system. It also benefits the correct goods reservation and effective stock levels update.
Customer support - to effectively track the order processing incidents, inform the managers about the specific order issues that need checking and create a powerful algorithm for their effective resolving (for instance, the use of chatbots can benefit in automatically tracking the orders, checking the order details and redirect customers to the specific manager according to the type of problem they’ve experienced).
Multiple payment gateways and fraud checks - to block the fraud accidents, abort the suspicious transactions and minimize the cost losses. At the same time, you’ll attract more clients with the various payment methods and safe transaction processing.
Reporting and analytics - to define the customer preferences, seasonal trends, and popular products, as well as track the employee’s KPIs and define the weak points and possible improvement strategies of the order management process.
Other great functions to consider when developing the order management system for eCommerce are:
Order tracking - to let consumers personally track the status of their order without the need to address customer support or the shipping team. For the advanced eCommerce businesses, it would be also great to include real-time shipment tracking, which will not only reduce the order management team workload but also will be a great bonus for customer service.
Contact database - to store and use the important clients’ data, and automatically fill it in for the next orders of your clients.
Automated order status notifications - often ignored or forgotten to handle by order managers manually, it takes only a few seconds to complete using the eCommerce order management software. This feature can easily inform customers about the order details, send the shipping status updates, and remind them about the abandoned shopping cart using any suitable channel: using SMS reminders, app notifications, or classic emails.
Shopping platform integration - to ensure quick yet effective data import and export, it’s essential to build a flexible OMS system that works well with multiple shopping platforms and ensures simple yet smooth performance.
Summing It Up
To sum up, eCommerce order management software is a must for businesses looking for order fulfillment optimization and automation.
By employing these retail applications and software, the eCommerce companies of different sizes and product types can enhance the significantly minimize the time needed for the order processing and preparing for delivery, manage multichannel and omnichannel sales across different platforms and marketplaces yet increase the quality of customer service and boost the clients’ loyalty.
Intellectsoft knows how important it is to develop the right software with advanced technologies that perfectly fit your business goals and needs. We’re empowering numerous businesses with premium yet effective solutions to improve their performance and enhance their workflow.
Talk to our experts to get the expert consultation regarding order management solutions development and whether or not this technology matches your business strategy right now!
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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