AI Chatbot

Fernwood Retail

A retrieval-augmented support assistant that deflected 42% of inbound tickets.

Fernwood Retail — A retrieval-augmented support assistant that deflected 42% of inbound tickets.

Industry

Retail & E-commerce

Timeline

8 weeks

Team

2 engineers

Category

AI Chatbot

The challenge

Where things stood

Fernwood's support team was buried in repetitive order-status and return-policy tickets that didn't need a human, but their existing chatbot gave generic answers because it wasn't actually connected to their order data.

The approach

How we got there

01

RAG over live data

Built a retrieval layer over Fernwood's order, inventory, and policy data so answers reflect what's actually true right now, not a static FAQ.

02

Escalation guardrails

Defined clear conditions for handing off to a human — refunds above a threshold, anything policy-ambiguous — instead of letting the model guess.

03

Ticket-log evaluation

Tested against three months of real historical tickets before launch to measure deflection rate ahead of time, not after go-live.

The results

What changed

42%

Inbound tickets deflected

<10s

Average response time, down from ~6 hours

92%

Customer satisfaction on deflected tickets

Under the hood

Tech stack

Claude API

Generates support responses grounded in retrieved order and policy data, not memorized training data.

RAG

Retrieves the specific order, inventory, or policy record a question is actually about before the model answers.

Node.js

Orchestrates retrieval, escalation rules, and the handoff-to-human logic.

PostgreSQL + pgvector

Stores order and policy data alongside embeddings for retrieval, without a separate vector database to keep in sync.

Next.js

Powers the support widget and the internal dashboard for reviewing flagged conversations.

Zendesk API

Hands off escalated conversations into the support team's existing Zendesk queue.

“The AI assistant they built now handles nearly half our support volume, and customers genuinely prefer it to waiting on email.”

PN

Priya Nadar

Head of CX, Fernwood Retail