Japanese electronics giant Toshiba’s humanoid robot Chihira Junko is demonstrated during a press preview while small sized entertainment robots ApriPetit sing songs at a shopping mall in Tokyo. The android can give guidance to visitors in Japanese, English and Chinese. AFP

People do not want to speak with robots while shopping in-store or online, according to a new study conducted by Oracle NetSuite in partnership with Wakefield Research and The Retail Doctor, a retail consulting firm created by expert consultant and business mentor Bob Phibbs.

The global study of 1,200 consumers and 400 retail executives across the US, UK and Australia found a huge disconnect between shopper demands and what retailers deliver in areas spanning the overall retail environment, social media, personalization and the use of advanced technologies such as chatbots, artificial intelligence (AI) and virtual reality (VR).

“These findings point to a clear and urgent need for better customer service,” said Bob Phibbs, CEO, The Retail Doctor.

“No retailer wants their customers to be confused or anxious, yet more than half of respondents have felt that way while shopping. Customers will feel confident when they develop an emotional connection to the brand. This happens when retailers foster positive, helpful in-store interactions; contrary to popular belief, millennials want store employees to help them. With nearly every respondent reporting that they value brick-and-mortar stores, now is the time to craft every in-store interaction to keep shoppers coming back.”

Despite significant investments in enhancing the customer experience online and in-store, retailers are not able to keep up with rapidly changing customer expectations and this is creating a huge disconnect.

73 percent of retail executives believe that the overall environment in retail stores has become more inviting in the past 5 years. Only 45 percent of consumers agree, with 19 percent stating it has become less inviting.

80 percent of retail executives believe that consumers would feel more welcome if in-store staff interacted with them more. Less than half (46 percent) of consumers agree, with 28 percent noting they would feel more annoyed.

79 percent of retail executives believe chatbots are meeting consumer needs. Two-thirds of consumers (66 percent) disagree, with respondents noting that chatbots are currently more damaging to the shopping experience than helpful.

Almost all (98 percent) retail executives think that engaging with customers on social media is important to building stronger relationships with them. Only 12 percent of consumers think it has a significant impact on the way they think or feel about a brand.

Despite almost half of consumers (42 percent) — and almost two-thirds of millennials (63 percent) noting that they would pay more for improved personalization, only 11 percent of retail executives believe their staff has the tools and information needed to give consumers a personalized experience.

The gap between consumer demand for improved personalization and retailers’ ability to deliver is damaging the customer experience.

80 percent of consumers do not feel they are provided with a personalized shopping experience both in-store and online.

More than half (58 percent) of consumers are uncomfortable with the way stores use technology to improve personalization in their shopping experience and almost half (45 percent) reported negative emotions when they receive personalized offers online.

The majority of consumers (53 percent) felt negative emotions the last time they visited a store; only 39 percent feel confident in retail stores today.

While retailers are aware that they don’t have the tools and information needed to meet rapidly changing customer expectations, the study found that hyped technologies such as AI and VR are not yet the answer.