Hobbycraft AI service upgrade fuels growth

The UK arts and craft retailer talks to Miya Knights, Retail Technology Publisher, about unifying its customer communications channels to boost customer satisfaction and sales

Hobbycraft is looking to capitalise on the latest agent-based capabilities added to artificial intelligence (AI)- powered customer relationship management (CRM) and service systems.

Following the successful implementation of Freshworks customer service and CRM software, the UK’s premier arts and crafts retailer aims to build on improved customer service, which has, in turn, increased sales.

With 124 stores and a thriving e-commerce business, the specialist retailer faced the challenge of replicating its renowned consultative in-store expertise across all customer service channels, in the wake of the rapid growth of digital during the COVID-19 pandemic.

Simon Birch, Hobbycraft Head of Customer Service, told RetailTechnology.co.uk that the decision to select Freshworks was driven by its AI‑powered omnichannel capabilities and seamless CRM integration.

Managing digital growth

“You can only have a one-on-one conversation about the speed of the customer,” Birch said. “The pandemic shifted our focus massively.

“We saw an increase in digital contact, including social media, Facebook, and what was Twitter. The customer still wanted a conversation, but not necessarily in real-time. And I think that post-pandemic, I've seen a shift from telephone to live chat.”

Birch led the search for a solution capable of unifying email, live chat, social media, voice, and mobile enquiries into one platform. This was especially important, given that agents shared a single email inbox, which was used to handle approximately 250,000 customer queries per year.

He said it was important that the new system could help his team match the level of knowledge and service customers expect in-store.

Enhancing quality of service

Building on its initial rollout in early 2024, Hobbycraft has since expanded its Freshworks deployment across all customer‑facing teams, including the loyalty programme support desk. They now use the Freshworks Freddy AI copilot for both agent assistance and self‑service bot interactions on WhatsApp and Facebook Messenger—channels that account for over 20% of incoming enquiries each week.

“All of my team can recognise every customer if they've been in touch before, so they get a more personal service, “ Birch added. “I think Freshworks gives us the ability to use the AI to supercharge a response.

“You might write a great response, but AI can make it that much better, and we've seen that better received by our customers. So, although speed is slightly enhanced, customer satisfaction has gone up just by getting AI to support and check if you have answered every question in the best possible way.”

Quantifiable AI benefits

Freshworks’ intuitive dashboard, unified ticketing and Freddy AI response suggestions have driven a 25% uplift in overall customer satisfaction scores, as measured by post‑interaction surveys.

By automating routine queries and routing complex issues directly to specialists, Hobbycraft reduced average first-response times by 30%, enabling near-instant support during peak periods.

The Freddy AI Agent now autonomously resolves approximately 30% of all incoming tickets—ranging from order tracking to basic craft project guidance—freeing agents to focus on higher-value, creatively driven customer engagements.

Integrated performance dashboards and AI‑driven “coach” prompts have increased agent Net Promoter Score (NPS) levels of employee satisfaction by 18%, while onboarding time for new hires has dropped from six weeks to just three.

Customer experience enhancements

Birch added that customers can seamlessly switch between web chat, social messaging, and email without repeating themselves, thanks to Freshworks’ shared customer history view within the CRM.

Contact agents can greet returning customers by name, and have complete visibility into past orders, preferences, and ongoing tickets, while outcomes are used to develop their knowledge-driven expertise.

The continuously updated AI knowledge base, enriched by daily “failure reviews,” ensures agents access the most accurate product information—enabling them to confidently advise on everything from paper‑mache techniques to advanced sewing machine maintenance.

Strategic business impact

The implementation has also had a strategic impact on Hobbycraft’s business. It has enjoyed a revenue uplift through guided sales and iteratively improved customer service levels through an actionable insights loop.

Live‑chat project consultations have boosted average order values by 12%, with AI‑suggested upsells (e.g., “You might also need specialised pigment brushes”) driving a clear conversion advantage.

Integrated reporting surfaces top customer pain points directly to merchandising and digital‑content teams. Monthly “voice‑of‑customer” forums translate common questions into enriched website tutorials and in‑store training modules—reducing repeat tickets by 22%.

“We can now step back and think, this gets asked a lot, and we don't have the answer,” Birch added. “So, let's find the answer that builds that knowledge base.”

Future roadmap

Birch added that his team is now piloting Freshworks’ agentic AI capabilities to enable autonomous order modifications, returns processing, and targeted loyalty club offers within chat sessions.

The next implementation phase aims to resolve up to 50% of requests without human intervention, further accelerating resolutions to meet and exceed customer expectations.

Birch concluded that Hobbycraft’s extended partnership with Freshworks has delivered a holistic, AI‑augmented support ecosystem—mirroring in‑store expertise online, driving customer satisfaction and fueling tangible business growth.