LET’S TALK:CONVERSATIONALCOMMERCE

Benjamin BringVice President, Client and Media Services

October 2018

PRESENTER

Webinar Series brought to you by

Benjamin BringVice President, Client and Media Services

WHAT WE’RE TALKING ABOUT

How conversational interfaces came about

What kinds of interfaces exist today

How can marketers employ conversational interfaces

Best Practices

WHAT ARE CONVERSATIONAL INTERFACESConversational interfaces (CI) are software systems that simulate human conversation by leveraging artificial intelligence (AI) and machine learning (ML)

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HISTORY OF CONVERSATIONAL INTERFACES

1961

IBM Shoebox

1966

Eliza

1968

Hal 9000

1978

Speak and Spell

1987

Julie

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1997

Dragon

2011

Siri

2017

Seeing AI

HISTORY OF CONVERSATIONAL INTERFACES (CONTINUED)

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Personal assistants

Personal advisors

Sales and marketing consultants

Customer assistants

Employee assistants

TYPES OF CONVERSATIONAL INTERFACES/ASSISTANTS

Facebook Messenger

WHERE DO THEY LIVE

WhatsApp

Websites

Voice assistants (Amazon Alexa / Google Home)

Smart Devices / IOT

$5.5 BILLIONEXPECTED INVESTMENT IN ENTERPRISE INTELLIGENT

ASSISTANTS BY 2021 (Opus Research)

Copyright © 2018 Centro, Inc. All Rights Reserved.

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Intelligent Assistants & Smart Bots

CURRENT CI LANDSCAPE

(opus research)

Mobile Assistants

Internet of Things

Metabots

Shopping Assistants

Wellness Assistants

Travel & Entertainment

Financial Advisors

Social & Dating

Conversational Marketing

Sales Assistants

Mobile Care

Customer ServiceVirtual Agents

Scheduling & Collaboration

HR, Onboarding, Operations, Service Desk

Identification (Federated & Distributed)Authentication (Biometrics &

Multi-Modal)Fraud (Analytics & Prevention)

NLP, Machine Learning, & Semantic Search Conversational Analytics Knowledge Management

Conversational Platforms

Bot Platforms Messaging Platforms Speech AvatarsEmotions & Sentiment

Personal Assistants (deal with smart objects) Personal Advisors (deal with complex tasks) Conversational Sales & Marketing Virtual Customer Assistants Employee Assistants

Intelligent Authentication Technologies

Conversational Technologies

Enabling Platforms & Technologies

CONSUMER SENTIMENT: BY THE NUMBERS

consumers would rather connect with a company via live chat than any other mean of contact. (Hubspot)

consumers believe 'customer service' is going to be the major beneficiary of chatbots (mindbrowser)95%

48%

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SMART SPEAKER AWAKENING

66.6%

60.8%

29.5%32.9%

8.3%

14%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2018 2020

US Smart Speaker Users, by Brand, 2018 & 2020% of smart speaker users

Amazon Google Other

16% of US adults own a smart speaker like Amazon Alexa.(Edison)

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GETTING VOCAL

57%

62%

71%

87%

90%

94%

97%

0% 20% 40% 60% 80% 100% 120%

emails/calls

Enabling smart-home devices

Making a purchase

To-do list/shopping list

Timers/alarms/reminders

General questions

Weather/news

Ways in Which US Voice-Enables Speaker Owners Use Their Voice Enabled Speaker, Dec 2017% of respondents

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INDUSTRY ADOPTION

By 2020, over 80%of businesses are expectedto have some sort of chatbot automation implemented (Business Insider)

35% of consumers wantto see more companiesusing chatbots.(ubisend)

34%

27%25%

20% 20%

15% 15%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

APPLICATIONDEEP DIVE

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PERSONAL ASSISTANTS

Provide utility around day to day tasks

Live across IOT / connected home

96% of businesses believe chatbots are hereto stay. (Mindbrowser)

40% of consumers do not care whether a chatbotor a real human helps them, as long as they are getting the help they need. (HubSpot)

VIRTUAL CUSTOMER ASSISTANCELeveraged in healthcare for information seeking

Travel booking and search

Mobile messaging app usage surpassed social media usage in 2015 (Business Insider)

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BOTS WITH BENEFITS

13%

29%

38%

36%

38%

46%

52%

64%

61%

58%

50%

33%

33%

37%

45%

38%

48%

52%

51%

66%

(none of these)

Friendliness and approachability

Answers to complex questions

Detailed/expert answers

A good customer experience

Complaints resolved quickly

Easy communication

Answers to simple questions

Getting an instant response

24 hour service

Potential Benefits of ChatbotsMillennials vs. Baby Boomers

Millenials Baby Boomers

Through 2021, chatbotmarketing is expected to grow at a compound rate of 35.2%(Marketsandmarkets)

Interfaces that that help provide product information for leanedin consumers

Engage in a one to one fashion basedon interested to then present the most relevant product set

Allow for customization of products based on taste. Think auto and fashion

CONVENTIONAL SALES AND MARKETING

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Sh

are

of

resp

on

den

ts

Ways in Which US Virtual Users Shop with Their Assistants

% of respondents

SHOPPING ASSISTANT

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SHOPPING ASSISTANT

Wellness assistance

Travel and Entertainment

Shopping assistants

Financial advising and investment

Social and dating

PERSONAL ADVISORS

By 2022, banks could automate up to 90% of their

interactions with chatbots. (Foye)

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APP + BOT GROWTH

7,500

15,000

11,000

30,000

Month 3 Month 6

Initial Growth Of Apps Vs. Messenger BotsNumber of apps and bots available at

3 months vs. 6 months

Apps Bots

15% of consumers have communicated with a business via a chatbot in the last 12 months. (Drift)

100% growth in

three months

170% growth in

three months

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CHALLENGES REMAIN

3%

15%

24%

26%

27%

30%

43%

Other

Nothing would stop me from using a chatbot

If it wasn’t able to 'chat' in a friendly manner

I'd prefer to use a normal website

If I could only access it through Facebook

I'd worry about it making a mistake

I'd prefer to deal with a reallife assisant

Potential Blockers to Using ChatbotsWhat would stop you from using a chatbot?

PLAYERS INTHE SPACE

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CONVERSATIONAL INTERFACE: VENDORS

BEST PRACTICES

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Creation Launch /Promotion

Measurement

BEST PRACTICES

CREATION

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ATTRIBUTES

Natural On-Demand

Accessible Efficient

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ARCHITECTURE A CI

User interface

Natural Language Understanding &

Processing

Fulfillment Engine

Analytics and Reporting

Error and Feedback Mechanism

IntegrationUser Context

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HOW THEY WORK

Decision to undergo Colonoscopy

Diagnostic Procedure

Therapeutic Procedure

Does not reach Splenic flexure

Beyond Splenic Flexure, but not to

Cecum

Beyond Splenic Flexure, but not to

Cecum

Does not reach Splenic flexure

To Cecum To Cecum

Flexible Sigmoidoscopy

(45330)

Colonoscopy (45378; 53 modifier)

Colonoscopy (45378; 53 NO modifier)

Flexible Sigmoidoscopy (45331-45347, G6022-G60123*)

Colonoscopy (45379-45398, G6022-G60123*;

52 modifier)

Colonoscopy (45379-45398, G6022-G60123*;

52 NO modifier)

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CONVERSATIONAL

FULFILLMENTFulfillment mechanism for your intent

48% of consumers prefer a chatbot that solves issues over a chatbot that has personality. (Business

Insider)

INTENTSAn intent performs an action in response to natural language user input

UTTERANCESSpoken or typed phrases that invoke your intent

SLOTSSlots are input data required to fulfill the intent

I’d like to book a hotel

Sure, which city?

New York city

What date do you check in?

November 30th

Are you sure you want to book the hotel in New York City?

Thank you. The reservation went through successfully.

Yes.

BOOK HOTEL

PROMOTION

1

2

3

4

5

Time spent

MEASURING SUCCESS

Number of questions asked

Where are user coming from and going to

Types of questions ask most and least

Consumer sentiment

Top KPIs to consider

CI’s are capable but not perfect

They are not entirely driven by AI. Design framework is key

Measure everything you can and apply to business strategy

KEEP IN MIND

QUESTIONS?