Chatbot Cost Calculator | How Much Does It Cost To Build An AI-Based Chatbot?
The fact that chatbots can save as much as 30% of customer support costs has led to the entry of chatbots across industries. While the cost to build a chatbot is a matter of discussion, tech giants and startups have begun acknowledging chatbot’s potential.
As per Juniper Research, Chatbots will be responsible for cost savings of over $8 billion annually by 2022, up from $20 million in 2017.
Despite the massive benefits that chatbots bring, some organizations are still reluctant to develop chatbots for their businesses. Although there can be multiple reasons behind it, the most obvious one is the cost to build a chatbot. In this post, we will go through everything that relates to the costing aspect of chatbot development.
Factors Affecting the Cost to Build a Chatbot
Every business is unique, and so are its requirements. Here, we will take you through the factors that bring different chatbot, pricing models.
1. Business Goals
The most dominant factor that can determine your decision for chatbot development is your business requirements. Moreover, the inclusion of various features depends on your business goals, which means you can add features that suit your ultimate aim.
Determining your business goals can help you do away with features that won’t bring any profits. You also need to bear in mind the more complicated your features are, the more time and money you need to spend on them.
2. Types Of Chatbot
The planning stage includes deciding on the type of chatbot you wish to have for your business. Only then can you get an estimate of the cost.
Messenger chatbots are chatbots based on messengers like Facebook Messenger, WhatsApp, and Telegram.
Website chatbots are used for customer support and answering queries. The chatbot improves customer loyalty by supporting customers instantly.
Transaction chatbots support ecommerce transactions, including providing discounts, coupons, receipts, shipments, etc.
Lead generation chatbots involve prospecting and lead capturing to boost business growth.
Internal company chatbots automate routine processes like day-offs, changing shifts, and others.
3. Data Analysis
To make chatbots learn what to answer in extraordinary questions, data analysis, and machine learning come to the rescue. Data analysis enables chatbots to pick speech structures from previous conversations, analyze them, and use them to answer customers’ questions.
Additionally, it can allow you to make a chatbot development cost breakdown and determine the cost of the development process.
Before we proceed further, let us have a glance at some of the most amazing facts about chatbots.
- By 2024, the chatbot market size would have increased to $1.34 billion.
- Chatbot market value was $703 million in 2016.
- Facebook holds more than 300,000 active chatbots.
- 48% of consumers like connecting with a company via live chat than any other mode of communication. (Hubspot, 2017)
Now let us move further to learn the other aspects that share a close relationship with the cost of chatbot development.
In-house Or Hiring An Agency: Which One To Choose?
The chatbot cost calculator is impacted mainly by the managerial decision of whether to form an in-house team or hire an external agency. Both options come with a set of advantages and disadvantages.
Building an in-house chatbot development team means your organization will have to pay salaries to the employees along with payment for ongoing chatbot support and maintenance.
On the other hand, hiring a chatbot development agency will require you to pay the decided amount in addition to ongoing chatbot support and maintenance fees.
What To Expect From Chatbot Development Process?
1. Chatbot Software Platform
You will get a robust and modern multi-channel chat marketing automation platform that will enable smooth communication between your organization and its customers.
2. Chatbot Development And Setup
It involves initial chatbot development and setup to make chatbots answer frequently asked questions and gather important information about the prospects who visit your website.
3. Chatbot Support And Maintenance
Once the chatbot is up and running, there may be times when you will need to bring in some tweaks or updates. You will have to pay a certain amount of fees if you have hired an agency. Alternatively, you can spend some dedicated hours in a week to identify the issues and work upon them. However, it will consume your team’s working hours, which could otherwise have been used in accomplishing some other tasks.
Making an intelligent chatbot pricing comparison between the two options can give you a clear idea.
4. Costs Summary
As mentioned earlier, every project is different, and the requirements determine chatbot pricing models. However, it isn’t easy to bring forward a fixed amount.
If your organization is planning to develop its first chatbot, it would be wise to start small. In simple words, add only the basic features at first, and then add additional ones as per the need.
Following the given pattern will reduce the initial costs, and you can keep on analyzing the development process at every stage.
5. Price Breakdown
Once you have decided to hire a team that will develop a chatbot for you, the process begins getting more manageable. Admittedly, you should also know the aspects for which you are paying the cost. Right?
The price breakdown is something that you should know. Various aspects are:
- Technological infrastructure
- Support and maintenance
- Number of times your chatbot triggers every month to engage a unique visitor
What Is Included In Additional Charges in Chatbot Cost Calculator
Most of the chatbot development agencies charge based on the number of specific aspects like landing pages or campaigns. The more the quantity, the more the price.
Companies often customize their prices or introduce different pricing tiers to suit unique business needs.
Main Chatbot Features That Determine Chatbot Development Cost Breakdown
If you have decided to develop a chatbot but don’t know the features you must include, there is no point in deep discussions. Let us have a look at the features that you should not miss integrating with your chatbot.
Having a clear conversation pattern is necessary for the users and the companies. The order of messages should be logical and in line with what the customers ask. If the answer is not what is demanded, the customers may lose interest and loyalty to the respective organization.
Furthermore, chatbots should be developed in such a way that there are least grammatical errors. The users get a negative impression and fail to stick to it in the long run.
2. Payment System
The main motive of developing a chatbot is to engage customers and improve sales. To make it happen, you should stay active and maintain at least one payment method.
A well-framed payment system allows easy flow of payments from customers to the company in a secured manner. Consequently, the companies can meet the ultimate goal for which they are running their business.
With online mapping, you can attract new customers by pinpointing your business’ location on the map. The features will, for instance, allow users to reach a store they’ve never been to before.
It attracts customers to visit your business place and buy what you are offering. Furthermore, users can place an order via chatbot, pay through an integrated payment gateway, and receive the order.
The geolocation feature is highly suitable for food delivery businesses as users share their geolocation after placing an order with a courier. The results are higher as compared to building a delivery app from scratch and making it grow.
Providing a personal touch while interacting with users raises a feeling of being valued amongst the users. As a result, users feel more connected to the organization and give positive feedback about the bot.
5. AI Implementation
Artificial Intelligence allows chatbots to learn on their own without human intervention. It involves machine learning algorithms. When the bot receives a query, it searches for similar queries in an extensive database. Furthermore, it generates a response using the analyzed data.
You will be amazed to know that bots begin to perform better with time and every correct response.
6. Natural Language Processing
Natural language processing, in simpler words, is responsible for smooth communication between users and bots. Voice assistants like Siri and Google Assistant are classic examples of NLP.
What Is The Exact Cost To Build A Chatbot For Your Company?
Are you planning to develop a chatbot yourself? If yes, you must know that it is a time-consuming process and will include complex tasks and processes. Nevertheless, if you hire a chatbot development company, you can keep stress at bay while the company works for you.
What Is The Total Cost To Build A Chatbot?
Generally, enterprises believe that developing a chatbot will cost them a fortune. However, it is just a myth that surrounds the chatbot cost calculator process.
The cost for chatbot development varies from company to company. But most of the software companies charge from $15,000 to $30,000. And talking about bots that are empowered by NLP and ML technologies, they may range from $40,000 to $100,000.
Benefits Of A Chatbot For Enterprises
The chatbot development cost breakdown gets justified due to the massive benefits that it brings to the organization. Here are its benefits!
1. Reduced Operational Costs
The number of incoming calls constitutes a significant part of a company’s operational costs. When you have a bot in place to answer customer queries, you can save on the costs associated with the increasing call volumes.
Besides, users interact with bots initially, and when they interact with customer care executives, it does not take much time.
With bots, an organization can stay available throughout the day for its customers and answer their queries. You can attain and retain customers while ramping up your business growth.
And the best part is that the fact always justifies the total cost to build a chatbot.
3. Improved Resource Allocation
Chatbots reduce the need for human intervention when interacting with the users in the first place. Organizations can then employ those resources in other business functions. The interplay of all the positive factors impacts the chatbot pricing models indirectly. As an outcome, enterprises get to save their money by putting their human resources and engaging them with other business verticals.
4. Increased Revenue
Chatbots are also helpful in updating customers about upcoming discounts and offers. Customers get attracted and begin buying more from that particular brand name. It results in increased revenues and profits.
5. Increased Customer Engagement
Customers, in modern times, prefer engaging with bots rather than humans to get their queries answered. Increased customer engagement then leads to increased revenue for businesses.
Conclusion: Cost of Building a Chatbot
Choosing the right chatbot for your business can be overwhelming, and you may risk your website’s ability to capture and convert leads. Now that we have seen all the costs and the benefits that chatbots can bring, it is time to integrate them with your business.
You can always make a smart chatbot pricing comparison before you plan to hire a chatbot development company.
As per Gartner, chatbots will power 85% of all customer service interactions by the year 2020.
Surprisingly, the fact has proved to be accurate, and 2020 saw a significant transformation in the world of Chatbots. However, to develop an outstanding Chatbot, you need to look for a company that can do it perfectly.
RisingMax is your go-to AI chatbot development company that holds the right domain expertise and knowledge to develop a chatbot that matches your organizational goal.
Connect with the most professional IT consulting company NYC today for a smarter tomorrow for your business!