Step 1: Listen to the other person talk above all else. Ask questions about their interests, family, work and background to get to know them better. As long as you can pay attention to what they're saying, paraphrase what they've said or formulate more questions to keep the discussion going, they'll find the conversation fascinating.
Step 2: Use your body language to show how approachable and open to conversation you are. Keep your stance open and your arms unfolded. Maintain eye contact, smile and nod as you listen to the person talk to assure him that you're paying attention.
Step 3: Do research before any situation where you'll be talking to people.
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