Conversational Interfaces - beyond

the hype

Matthieu Varagnat www.smooz.io

What is a conversational interface

• App in which interaction happens mostly through conversation

• Messaging apps• But also SMS and Voice

(Siri, Alexa)

What is a conversational interface

VS VS

• New, powerful platforms• Messaging as dominant usage

Why do we care

• SMS: 20B messages. • Whatsapp + Messenger: 60B daily messages

New platforms

New platforms

Attractive platforms with• Heavy usage• ID and other context like

contacts, location, likes• Payment feature (?)

New Design paradigm

• Conversation threads as apps• Writers as UX designers• No or limited UI

• Shortcut buttons, webviews, images etc…

OpportunitiesLow friction

User

DevMarket

Quickiterations

Distribution potential

Promises to the userMost users use only 2-3 apps• Threads as apps = less clutter • Chat to install = frictionless (and space

saving)• Asynchronous push, or on-demand =

convenient

Promises to the marketer

2/3 of users don’t download apps, app stores are crowded, installs are costly• Social discovery. Viral effect of group chats

(not yet on Messenger).• Less crowded bot stores (for now)• High usage and easy re-engagement

Promises to developers

• Native across web, iOS, Android (messaging client)

• Relatively portable across messaging apps• Growing feature set

Promises to developers

• Backend updates• Low bandwidth• Simple UI

Relatively simple and low-cost => long tail opportunity

Bots

Messaging growth + AI buzz = frenzy

Bots

Bots?

What works and what doesn’t?

Conversation commerce

• WeChat pionneer• Specialized shops with

limited SKU count, targeted customer segment, and superior engagement

• Not proven outside of Asia

Conversation commerce

• Probably not a repackaging of e-commerce• Might start with advices/expertise/niche?• Branded influencers?

Brands and customer service

• Messenger natural fit• Much more convenient

than email or phone: on-demand + notifications

• Context (receipts, customer infos)

Brands and customer service

Brands and customer service

Business apps

Useful Slack apps:

• Save users time• Focus on Slack team-interactions strength• Provide intuitive, respectful interaction

https://medium.com/@MVaragnat/what-makes-a-good-slack-app-23edf2ea7088#.9ntdcqegy

Business appsBooking meeting

Business appsPulling stats reports and sharing them

SMS

• 120% penetration rate• Can be bootstrapped with a landing page

and a number

SMS

Jam Magic

Dont’s1) Not everything should be done in chat

Or if in chat, not necessarily through conversation

2) Starting with AI is harder

The Order-a-Pizza fallacy

VSor

The Order-a-Pizza fallacy

VS

Solving the fallacy

VSor

WeChat: cards, images, and context (ID, dress, payment)

AI hypeNLP can fail frustratingly

Some solutions

• Cards, action buttons, custom keyboards

• Rigid keyword syntax• /commands• Or 100% human backend

Some solutions

100%Human

Fluidify Rigidcommand

syntaxNLP

Example:

Automate

Some good practices1) Make the intro useful

2) Support ‘help’ command3) Proactively suggest actions, provide

examples

Too much freedom can be confusing. Restricting options can be helpful.

Demo

• Live demo BotKit

Conclusion

• Messaging platforms provide attractive distribution and user experience

• Conversational apps should not be reduced to NLP/AI chatbots.

• Removing friction is key

Docs• https://medium.com/chris-messina/2016-will-be-the-year-of-

conversational-commerce-1586e85e3991#.6qqfqea1b• http://dangrover.com/blog/2016/04/20/bots-wont-replace-apps.html• http://www.theverge.com/2016/1/6/10718282/internet-bots-

messaging-slack-facebook-m• https://medium.com/@MVaragnat/what-makes-a-good-slack-app-

23edf2ea7088#.9ntdcqegy• http://alistapart.com/article/all-talk-and-no-buttons-the-

conversational-ui• https://walkthechat.com/4-case-studies-of-successful-wechat-e-

commerce/