Driving Revenue Through Customer Experience: Insights for Retail and E-Commerce

Last Updated:
January 28, 2025
Reading time:
2
minutes

Customer experience (CX) is more than just a buzzword—it's a proven driver of revenue, efficiency, and loyalty in the retail and e-commerce sectors. In a recent panel, industry experts Ariel Morgan (Faire) and Rachael Bartlett (River Island) shared actionable insights on how innovative CX strategies and AI-driven tools can help brands thrive in today’s competitive market. Below are the key takeaways, supported by insights from their discussion.

How CX Drives Revenue

CX is no longer just about solving customer complaints; it’s about embedding customer feedback into every facet of the business. 

For Ariel, embedding CX teammates directly into product development at Faire ensures customer feedback shapes user-friendly features that drive adoption, reduce tech debt, and increase revenue:
“By shipping better products, we reduce ongoing maintenance costs, fewer customer inquiries, and fewer updates later down the road”

Rachael highlighted River Island’s focus on leveraging CX data to enhance in-store service:
“We know that service has a huge impact on experience and loyalty, and there’s a strong correlation between satisfaction growth and market share”

The Role of AI in CX

AI has become a game-changer for CX teams, enabling them to analyze feedback at scale, reduce manual processes, and act faster. At Faire, Chattermill’s AI tools have transformed workflows:
“Chattermill funnels customer feedback into Slack, saving 50 hours weekly across product pods. This helps us quickly spot bugs and fix them in days instead of weeks”

Rachael shared how AI-powered dashboards enable River Island to identify trends and pain points from qualitative data:
“For example, queues at tills came up consistently, leading to the rollout of self-service checkouts to improve experiences”

Reducing Returns and Increasing Basket Sizes

Return rates are a significant challenge in retail. River Island tackled this with a strategic shift:
“Introducing a returns fee for postal returns encourages customers to visit stores, creating opportunities to convert returns into new purchases”

Faire’s biannual pain point analysis revealed that shipping costs were a top concern for customers. Ariel explained how addressing this with a free shipping program boosted customer purchases and reduced friction:
“Retailers buy more when they don’t have to absorb shipping costs, which boosts sell-through rates and drives demand”

Building Customer Loyalty

The panelists emphasized trust and reliability as pillars of loyalty. Ariel noted:
“Customers want tools that help them operate efficiently. Small features like marking messages as unread have led to massive sentiment wins”

Rachael added, “Listening to customers, showing them that we care, and enabling easy returns are key to building trust”

Final Takeaways

The discussion concluded with actionable advice:

  • Customer-Centric Development: Ariel emphasized, “The best products are built by actively involving customers and using AI to filter through noise and focus on what truly matters” 
  • Scalable Feedback Systems: Rachael highlighted, “AI helps save time and money, enabling us to focus on using feedback effectively” 

Conclusion

AI-driven tools and CX strategies aren’t just enhancing customer satisfaction—they’re directly driving business outcomes. Whether through reduced return rates, increased loyalty, or operational efficiencies, brands that prioritize CX are positioned for long-term success.

If you’re ready to transform your CX strategy, take these insights and apply them to your organization today.

See Chattermill in action

Understand the voice of your customers in realtime with Customer Feedback Analytics from Chattermill.