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How Much Does It Cost To Develop Chatbot App | Here Is The Complete Guide, Time, Features & More

author Written by Ashish Goyal on Oct 10, 2022 | Updated on: Oct 10, 2022 443

Chatbot app development redefines communication, enhances the relationship between the brand and customers, and establishes a unique messaging experience.

Chatbots are human communication and conversation replicas, but specific, however, at the same time intelligent that are designed to help businesses and customers with varying agenda(s) and idea(s). 

Chatbots enhance communication by setting up personalized sentiments, answering user queries, refining marketing, and sales practices, and many others. 

In simple words, Chatbots are robot-based text-messaging services that substantially talk and act like human beings. Other than menuing, chatbots can be voice-based as well. 

In the context of mobile app development, Chatbot apps can be both mobile-based and web-based. 

Generally, the type of chatbot best suitable for a business entity is rectified based on the market survey including users' penetration data and the nature of the business. 

In this blog, we’ll learn about chatbot apps, chatbot app development features, and the cost to develop a chatbot app for your own business. 

But first, let’s know its market growth and size.

What is Chatbot App Development Market Size and Growth? 

Chatbot app development services were depicted a long time ago. Since its inception, it has significantly helped a plethora of verticals (such as marketing, healthcare, Information Technology, logistic, and sales) to communicate smartly with consumers and enhance relationships. 

And today, it is worth millions of dollars. 

Take a look at the chatbot market revenue worldwide.

Chatbot App Development Market Size and Growth

In the current year (2022), the worldwide chatbot market is projected to reach 106.6 million U.S. dollars in revenue. 

The Statistics also speak about future years (2023-2027) chatbot market revenue worldwide. As a result, the worldwide chatbot market is projected to amount to 454.8 million U.S. dollars in revenue.

To conclude, the market is well-settled and highly possessive to offer great returns. 

For businesses, it is a great time to invest in chatbot mobile app development to cater to its benefits. 

Benefits of Chatbot App Development for Business

It is invalid to ask the question ‘how long can you serve your customers besides working hours’ - in simple terms, can you create a 24*7 support system? 

Offering round-the-clock services is critical, however, as well as difficult, but with the chatbot services, you can effortlessly decrease human inputs and increase vital hours dedicated to customers or clients. 

Chatbot never sleeps but humans do. In this way, you can utilize a chatbot for 24 hours, even on weekends and holidays. 

Chatbots, in alternate terms, are aimed at changing your business growth. Here’s how: 

1. Lowering the operational cost 

Every business has to bear the operational cost and those “work of operation” mostly rely on calls and dialing to deal with huge operational costs. 

Considering menu-based chatbots, which are the most used chatbots among other types, can minimize the operational cost to a great extent. 

It lowers the limits of using human efforts via creating a funnel contexting hierarchies similar to automated phone menus.

However, this type of chatbot consists of basic to critical FAQs that mark up 80% of the user’s queries but lags in more advanced scenarios. 

2. Better resource allocation 

As chatbots create a seamless system for management and people, the higher-authority management can scoop up resources to utilize them effortlessly. 

Saving large amounts of time by solving the queries without moving to the second phase. It saves time and money (critical resources) for the business. 

In this way, managers can increase the task duties and can focus on other primitive work. 

3. Increase customer engagement 

The prior objective of chatbots is to understand customers’ queries and then offer effective solutions. The AI-based chatbots are well performed in the event as they collectively and frequently understand and read customers’ keywords and sentiments to offer quick solutions. 

In addition, chatbots don't take time to write back to the queries input by the customer. Provides instant reply and develops fast communication. 

4. Monitoring consumer data & gaining insights

Facts and data play an important role in business. In simple terms, the collected insights act as a base creating effective research, decision, and action. 

Understand it in this way. 

As you know that chatbots are a noble tool, it learns the input of the users and significantly store them to memorize for brilliant services. 

The business community can use the data and insights collected from the chatbot neural network to improve their product or in the areas where required. 

5. Greater automation advantages 

The hybrid kind of chatbot that includes the element of both rule-based chatbots and the complexity of the AI-bots greatly benefits employees and managers, it accomplishes the task with automation processes. 

These kinds of bots are used in the sales process. However, it can be used for other purposes. As the sales process alludes to a number of drills with varying goals and subsets, automated chatbots explicit the end-to-end process at the right time with each piece of detail to the sales team. 


Also read: How Much Does It Cost To Develop A Stock Trading App


Types of Chatbot App Development in The Market 

different chatbots types

The word ‘Chatbot’ is not a new term for you. Additionally, you probably have run into a few bots yourself (most knowingly and some unknowingly). 

In this section, you will learn the five types of chatbots hovering around the world and have been used in unlike industries. 

For instance, banking chatbots are hybrid-based bots. 

Menu Based Chatbots

If you ask, which type of chatbots are used most? 

It is the menu based (also known as) button-based chatbot that uses a hierarchy (tree-based) system to communicate with clients or users. 

Yes, these bots are similar to the automated phone system that systematically takes the caller to solve or reach the ultimate answer. 

Rule Based Chatbots

These are now observed as vintage chatbots because they rely on prediction and programming sources. If you can predict what type of questions your potential clients may ask, this chatbot might be the solution you are looking for. 

As these create conversational automation workflow, users tie in systematic cycles to get the query resolved. However, this could be time-taking and may not be effective for all. It is also known as linguistic chatbots.

Keyword Recognition Based Chatbots

Like menu-based chatbots, the keyword recognition-based text bots also read ‘phrase’ or ‘special input’ from the users and thereby provide results. 

It interprets keywords and delivers results. It uses an AI application called Natural Language Processing (NLP) to learn to serve an appropriate response to the user.

However, it fails to offer accurate results as it slips when there are keyword redundancies between liked questions.

Artificial Intelligence Based Chatbots

Also known as Gen-Z chatbots or hybrid chatbots because they incorporate the best of both worlds - rule-based chatbots and machine learning applications. 

Twitter chatbots, Facebook chatbots, and other professional brand chatbots are AI-based chatbots. It learns and improves through conversations with specific users. Also, these chatbots are enough to self-improve and provide efficient results in time.

Voice or Self-worth Based Chatbots

I think this needs no introduction. 

Popular voice chatbots are Google’s “Ok Google”, Amazon’s “Alexa”, Microsoft’s “Cortana”, and Apple’s “Hey Siri” and others. 

These chatbots are well versed with voice. These chatbots first listen to the user's voice or command and then provide absolute results. However, the implication of results and experiences is based on the internet connection. 

Creating Chatbot Mobile App? A Must-Have Features to Include 

Chatbot Mobile App Development Features

Creating a chatbot from scratch is not easy, but fun and you get adhesive knowledge about chatbot methodologies. 

Following are some important features to mention in chatbot app development either designed for mobile or website, it helps you make a successful chatbot. 

The basic features of chatbot mobile app development are follows: 

  • NLP: Natural language processing is an important feature to include in a chatbot because it learns users' input, governs how users would interact, and concerns how to use your chatbot. Without this feature, chatbots might not be able to delve into a deeper level. 
  • Software Integration: Another crucial feature to must-have in your chatbot is integration with smart solutions such as apps, CRM, and more. 
  • Payments Integration: As of now chatbots are also capable of fulfilling transactional-related tasks for users. Integration payment features help users to get a quick solution to get a refund, make payments, cancel orders, and many other things.
  • Multilingual Capabilities: It is true that businesses have multilingual customers. Therefore, this feature is also a must include in your chatbot. Provide support to change language conversation in a speaking language that users understand easily. 
  • Emotional Intelligence: This feature is so-vital to include in order to provide a personalized user experience. It dictates bots understand the emotion, tone, and sentiment of the user and reply more generously to feel like a human. 
  • Simple Interface: Chatbot interface should be designed logically rather than based on rigid ideas to achieve end objectives. Simple interface because it is easy to learn, feels classic, and is intuitive in experience. 
  • AI-Enabled: This cannot be excluded from chatbot as it becomes necessary for corporate survival. Artificial Intelligence algorithms in chatbots increase productivity and satisfaction. 

Advance features to consider in chatbot app development

Rich Messaging 

Chatbots are increasingly becoming advanced by the use of technology and innovative ideas. Rich messaging is different from the standard messaging format. Generally, these mostly appeared with a combination of image, link, and description. 

Retail and Online Ecommerce platforms mostly use rich messaging in their chatbots to help customers find products.

Privacy and Security

This context is not only related to adhering to cybersecurity but of course other breeches scenarios. Chatbots should be secured and privacy protected which creates trust among users to use them more frequently. 

Insights and Analytics 

It is important from the aspect of marketing and conversions. The interactions through a chatbot are a way to create winning marketing strategies and win conversions in a short period of time. 

Other than consumer-related data, chatbot analytics can also be used for tracking key metric performance, cost per case, key search terms, and more. 

How to Develop A Successful Chatbot Application? 

Steps To Develop Chatbot Mobile App

In this section, you’ll learn the methodology to develop a successful chatbot application for your business. 

Simply follow the steps and move like jazz.

1) Consider what type of chatbot you are building 

You know that there are multiple types of chatbots available to consider for a brand. But, not all are likely to provide you with the best result. You have to choose the best one. AI-enabled chatbots are promisingly the best to choose from, however, you can definitely go with rule-based chatbots. Or just go for custom chatbot app development in which app developers can help you adversely.

2) Choose the development platform 

You have two options: Mobile and Web

Mobile-based chatbots are more popular than website-based chatbots. However, the best way to find the channel for chatbot development is to research your user's traffic source or either look into your analytics to find out the aggressive platform of users that they use to connect with your brand. 

3) Choose the technology stack 

Now, consider the technologies that you may want to use for chatbot app development. If you go for a mobile platform, your major focus should be on User Interface and simplicity while for websites, your major focus is on security, UI, and speed. 

Here’s a tech stack breakdown for better understanding: 

  • Framework: Google Dialog Flow, Microsoft Bot Framework, and Botkit
  • Programing Language: Python, Clojure, Java, PHP, and Ruby
  • Database: MongoDB, Cassandra, HBase, MySQL, and Postgres
  • Payment: As per your choice
  • Real-time Analytics: Hadoop, Spark, Big Data, and Apache

4) Design the conversation 

Chatbots are intelligent but you need to give a start from where they can shoot themselves to begin automation for communication. 

Greeting messages is a good way to start. But what to do when users first give their input? So, there you need to design a conversation. Sit with your team, gather knowledge, and draft a conversation plan considering you're a customer asking queries. 

5) Test the bot 

Testing your bot gives you in-depth and pre-advance knowledge about performance, improvement, and errors. In addition to this, be a customer that is frustrated, and looking for a quick solution. 

Now, begin the conversation and determine how the chatbot reacts or in what manner its responds. 

6) Deploy and maintain the bot 

At last, you now need to deploy the chatbot app in the play store or any medium you want to deploy. Take the help of a digital marketer and developer for the best results.

Don’t forget to bring updates from time to time for better results and enhanced customer experience. 


Also read: How Much Does It Cost To Develop Live Streaming App


How Much Does It Cost to Develop A Chatbot App?

cost to develop chatbot app

If you’re interested in developing your own chatbot for your brand, you may also be interested in knowing the Chatbot app development cost.

If it is so! In this section, you will learn the factors affecting the cost to develop a chatbot application and estimation to help you define your budget. 

Factors affecting chatbot cost are as follow: 

  • Custom development approach
  • The number of supported platforms
  • The number of screens to design
  • The type of integration you choose
  • At last, the complexity of app development

Considering all factors, custom development of a chatbot mobile app can approximately cost anywhere between $20,000 to $25,000. 

Adding custom features, the developer would charge an additional cost for that. 

To find out how much it costs to develop a chatbot app as per your idea, connect with our expert.

Final Thought 

That’s all in this chatbot app development blog. 

Consider the market size and external market research before planning a workflow for chatbot development. The important aspect to emphasize your efforts is the features of chatbot applications. 

Planning to develop a Chatbot app?

Speak to our experts! 

Get connected with us and see how our expert mind can help you with your project needs.

Ashish Goyal
Ashish Goyal is a digital marketing specialist at Xtreem Solution, a leading mobile app development company. He understands startups, enterprises, and their needs well. Apart from that, he is an expert in lead generation and inbound marketing. He has also handled the marketing and growing operations. He loves to help businesses in improving their online brand visibility and sales.

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