A Complete Guide On Chatbot Development Budget

We not necessarily have to mention that the core factor influencing the price of chatbot development is the work being done to develop the product. However, the process of development is generally split into multiple phases.

Having a general notion can help you estimate the overall expenditure that will be put into the chatbot development. Here we will present to you the generic process that is being carried out to develop a chatbot.

1. Discover The Category

Initially, we define the project purpose and value proposition. We define objectives, expectations, and metrics. Having an in-depth perception of what you want a chatbot to do and the ways it can revamp your business enables us to determine an appropriate development plan. These specific factors help you create a better and clear outline of chatbot development, here what you need to see.

It all is dependent on the size of your business

What business are you into? The category of chatbot is based-up on the very thing.
Although the question is pretty simple, this step is the most crucial for in-depth analysis since the results of this phase decide the following chatbot development stages.

The discovery phase is about studying what business has, wants, and needs. Thus, the next move is to recognize the necessities and functional units of a chatbot, such as:

• Conversational Flow
• Control Panel
• Interaction Channels
• Integration
• Natural Language Processing
• Backend

You also need to decide how the chatbot will be built. It is again the most imperative aspect that affects chatbot pricing. Below are the two prime options for you to choose from:

You are also required to determine how the chatbot will be created.

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Developing a custom solution

It pretty much brings in ease to get a chatbot that is developed as per your requirements, preferences, and strategies. This way, you are not bound by any platform abilities; although, the support and maintenance of such a bot lie under your responsibility.

Creating a bot on top of a bot-platform

Creating a chatbot deploying an existing platform is something that helps you save through bigger budgets. Such services run on a subscription basis and charge monthly fees (sometimes basic functionality is offered for free). Although, there are added fees for personalization, and frequently the final sum you pay is equivalent to the sum you’d pay for a custom solution.

2. Prototype Implementation And Evaluation Phase 

A prototype is a piece that does not encompass all the functionality of the final product (it is made to test the model ability). It can be code-based or simply in the form of a mockup (the choice relies on the chatbot’s complexity). A prototype enables you to learn many important factors. It is created to confirm some integral functional aspects of the intended design,  or in other words, to conduct an analysis for an in-depth study of the model’s usage. 

Once the prototype is designed, it is discussed with the client. The client and the developers are then able to validate the requirements, outline choices, and make modifications if required. The risks and costs associated with software implementation are relatively reduced, as the requirements are well-discussed at the very first stage, prior to the development process. 

Basically, the cost of a chatbot prototype falls between $3,000-$5,000.

3. Minimum Viable Product

Coming across the results from the prototype phase in mind, we develop a minimum viable product (MVP). An MVP is a product with generic functional features, a light version of the ultimate solution that already works with actual data. The MVP is exposed to a minimal group of users for the sake of garnering product feedback. It is not expensive enough to modify the system at this point, than when it is completely developed. 

The cost for a chatbot-related MVP falls between $10,000-$20,000, depending on the total project size and complexity.

4. Chatbot Software Release 

As a result of this phase, the product with an entire set of predefined features is developed and then released into the market. During the preceding phases, we evoke and validate the exact necessities. So that the end product is made with minimal risk.