Selecting the best chatbot or live chat app can be challenging. But you know what’s even trickier? Evaluating the cost of these chatbots accurately and finding the right fit based on your budget and needs. No worries! We’re here to help you navigate chatbot pricing. Spoiler alert: pricing starts from as low as $0/ month!

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Article Roadmap

• How Much Does a Chatbot Cost?
• Chatbot Pricing Models
• Cost-Benefit Analysis
• FAQs
• Next Steps

How Much Does a Chatbot Cost?

The question is quite simple, but the answer is not. The pricing of a chatbot app varies depending on two factors:

Features-Based

Whether the chatbot application features basic or advanced capabilities plays a significant role in pricing. For example, a basic rule-based chatbot would be priced lower than NLP-driven chatbots. The latter require more complex programming and ongoing learning from interactions to improve their performance.

Puneet Gogia, Founder of Excel Champs, highlighted that the chatbot pricing can vary significantly based on their capabilities, the sophistication of their AI and the scope of their deployment:

• Basic Chatbots: These often use pre-defined rules or simple AI. Prices can range from free for very basic offerings to around $50 per month for more developed rule-based systems with limited customization options.
• Intermediate Chatbots: Incorporating more advanced AI, such as machine learning models, for a better understanding of user queries, prices can range from $100 to $500 per month. These systems might offer more integrations and customization.
• Advanced Chatbots: Tailored for enterprises requiring high customization, sophisticated AI capabilities and comprehensive integrations, these can start at $1,000 per month and can go significantly higher, often requiring bespoke quotes.

Development-Based

Whether it’s a SaaS application or developed in-house also influences costs. Building software in-house may seem exciting, but it demands a substantial budget to assemble and sustain a team of chatbot designers, developers and data scientists. This makes it particularly ideal for large businesses.

Selecting third-party software eliminates the need to create a development team but requires a monthly subscription fee. This option is suitable for small and medium businesses.

Here’s the chatbot pricing comparison table for your reference:

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Chatbot Pricing Models

As discussed above, there are two options to implement chatbot apps. Let’s take a close look at these pricing models:

Chatbot-as-a-Service Models

This model is the most common, easiest and safest way to implement a chatbot app. Here, you choose a ready-made app and customize it according to your business requirements. The pricing range starts from $0 to $1,000 or more, depending on the complexity of features you choose to integrate.

Subscription models include three plans:

Free

Pros

• Free subscription models provide a basic set of features at no cost, enabling businesses to use chatbots without burning a hole in their pockets.
• These models are ideal for small businesses or those who are just starting to explore the benefits of chatbots.
• These solutions provide an opportunity to test and understand how chatbots can improve customer support.

Here are some examples of vendors that offer free versions:

Cons

• Limited customization restricts the chatbot’s alignment with your brand identity.
• Lack of detailed analytics limits the ability to optimize chatbot performance and improve customer interactions.
• Scalability constraints may hinder the chatbot’s effectiveness in handling high volumes of interactions.

Basic/Pro

It offers better customization and scaling opportunities than the free plan. You can use trial versions of these solutions before investing.

Pricing for this model ranges between $0/month to $500/month.

Some examples of basic/pro plans are:

Some of the top features that you can expect from basic/pro chatbot pricing plans are:

• Conversational AI
• Machine learning
• Full customization
• Visitor’s information
• Templates
• Chatbot statistics
• Unlimited bots
• Unique visitors
• Several types of chatbots

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Enterprise

Enterprise plans offer top-tier security features and compliance, along with dedicated support and consulting services to optimize chatbot deployment and performance. These subscriptions enable integration with various business systems and APIs for seamless workflows and comprehensive automation.

Enterprise-grade chatbot pricing ranges from $600/month to $5,000/month and more.

Examples of vendors offering enterprise-grade plans:

The top features that you can expect from enterprise-grade chatbot pricing plans are:

• 24/7 priority support
• Custom integration capabilities
• Advanced security measures
• Unlimited scaling
• Personalized AI training
• Dedicated account management
• Comprehensive analytics and reporting
• Multilingual support
• Voice recognition and interaction
• Custom user roles and permissions
• Custom SSO

In-House Development Models

If you want to develop an in-house chatbot rather than relying on an external agency, the initial costs can be quite high. Here’s a breakdown of the salary budget you might need to consider:

*The numbers are a summary of the industry and are taken from multiple sources.

Note: You don’t need a data scientist to develop and train your chatbots. After the release of OpenAI ChatGPT’s API, several companies have integrated the model into their existing interface. Creating a knowledge base also makes the software more efficient.

In addition to these salaries, you may have to pay additional costs for integrations ranging between $19 and $600, depending on the vendor.

The total monthly cost to develop this software might exceed $150,000. This is why this model is only viable for large enterprises. Here are the pros and cons of this model:

Alternatively, there’s a way to develop your chatbot in-house without the stress of hiring and maintaining a team. You can hire an external chatbot agency to build and maintain it for you.

These agencies typically charge anywhere from $1,000/month to $5,000/month and additional fees for software maintenance. This method can lower your overall costs and ensure a fully customized tool for your customer support. However, it offers less control than the previous method and requires additional time for implementation.

Michael Robert, cybersecurity and tech expert and senior technical contributor at GTABoom, shared his insight on navigating chatbot pricing models:

• Fixed subscription plans offer simplicity and better budget predictability for businesses that know their usage volume won’t fluctuate wildly.
• Usage-based pricing can be more cost-effective in the long term for some, as they only pay for what they use.
• Custom projects are best for complex bots with unique requirements but also carry the highest risks if not managed properly.
• Hybrid models that include base access plus usage surcharges are also becoming popular.

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Cost-Benefit Analysis

Now that we’ve understood the pricing models, it’s time to analyze whether investing in or building chatbots is worthwhile. Here are a few key statistics on chatbot implementation:

• According to a report by Zendesk, 63% of business leaders agree that AI/bots can deliver hyper-personalized customer experience. Also, 71% of customers believe AI and chatbots help them get faster replies.
• 57% of businesses claimed chatbots deliver maximum ROI on minimal investments.

However, despite these promising statistics and the lower initial costs compared to live chat agents, you must conduct a cost-benefit analysis of your chatbot pricing. Here’s how you can do it:

Identify Overall Costs

Calculate the total expenses involved in chatbot implementation, including development, operation, maintenance and any required training or restructuring costs. For in-house development, factor in salaries and technology expenses. For third-party solutions, consider subscription fees and customization charges.

Calculate Hidden Costs

Kelly Indah, tech expert and security analyst at Increditools, talked about considering hidden costs:

Beware of hidden fees, too. Many platforms charge extra for add-ons like landing pages, workflows, or API integrations. And agencies blend monthly fees with per-message charges that can balloon if you drive heavy bot traffic. Read the fine print.”

Evaluate Long-Term Benefits

Take into account long-term benefits such as scalability and the potential for gathering and using customer data to improve products and services.

Also, you must consider long-term budget savings from chatbots handling chats. However, for that, you first need to assess how many simple vs. complex chats your company manages each day. Based on this assessment, you can divide the work between live chat agents and chatbots.

Compare Costs

First, create a chart to clearly define how many chat requests you need to handle and how much you’re spending on live chat agents to manage them. Then, compare both costs.

For instance, you pay $4,000/ month for two agents to handle 100% of the tasks. Now, if you can engage a chatbot for a monthly fee of $15 to complete 50% of the chats, you’ll end up saving $1985/month. Seems like a bargain to us!

Consider Alternatives

Remember, while chatbots may seem like a cost-effective option for managing your customer support, it’s not entirely the case. They require a significant amount of time to adapt and learn before they can produce results like live chat agents. Also, they may not be as efficient in handling complex queries and require human intervention.

Depending on your business requirements, you can consider alternatives like hiring additional staff or enhancing existing systems. Comparing your options helps you understand the relative value and efficiency of a chatbot solution in achieving customer service and business objectives.

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FAQs

How much does a chatbot cost?

Chatbot pricing ranges between $0 and $1,000/month or more. The exact cost depends on several factors like features, integrations, advanced capabilities and customizations.

What are the different chatbot pricing models?

The most common pricing models for chatbots include monthly or annual subscription fees, one-time licensing fees, custom projects and hybrid models.

Can I implement a chatbot for free?

Yes, you can implement a chatbot for free. Several chatbot vendors, such as Jivochat and ZohosalesIQ, offer their basic plans for free. However, they provide limited capabilities and work best as a trial option before investing in the software.

How much do I have to pay to build a ChatGPT-like chatbot?

Development costs for AI solutions like ChatGPT can range between $100,000 and $400,000. Hiring developers to develop an AI chatbot will cost you significantly more and require more time.

Are chatbots cost-effective?

Chatbots are effective in solving basic customer queries, giving your live chat agents more time to focus on complex issues. They also help boost lead generation, enhance customer experience and improve client support.

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Next Steps

To accurately assess chatbot pricing and its benefits, you can’t solely rely on subscription fees. You must also consider implementation, training and development costs. Chatbot pricing is just one aspect of the larger customer support operations. You must also evaluate chat agent expenses to gain a holistic understanding of the overall costs.

If you need further help calculating chatbot pricing or selecting the best chatbot for your needs, consider exploring our free comparison report. It provides insights on features and pricing industry-leading chatbot apps to help you make an informed decision.

What other factors and hidden costs do you think affect a chatbot’s overall pricing? Let us know in the comments below!

SME Contributors

Puneet Gogia is a data and business analyst, tech expert and the founder of Excel Champs. After graduating in Commerce, he worked as a Data Analyst for Samsung before deciding to apply his expertise in a more educational and purposeful environment. He has a strong passion for data, AI, emerging technologies, software and Excel.

Kelly Indah is a tech expert and security analyst at Increditools. She has worked in the tech field for over a decade, primarily as a software developer and security analyst. She has a Master’s degree in Computer Science and holds a Certified Information Systems Security Professional (CISSP) certification. Indah has previously been featured in Forbes, CNET and MSN.

Michael Robert is a cybersecurity specialist and tech expert, as well as a senior technical contributor at GTA Boom. Thanks to his Cyber Threat Intelligence (CTI) training, he has hands-on experience in safeguarding digital assets through strategic defense measures.