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AI Chatbots for Business

AI chatbots are one of the fastest ways to improve customer service and capture more leads. These are the questions business owners ask us most before getting started with AI.

How much does an AI chatbot cost?

AI chatbot costs range from $50/month for basic off-the-shelf tools to $5,000–$25,000+ for custom-built solutions.

Simple chatbots using platforms like Tidio or Drift start at $50–$200/month. Mid-range solutions with AI-powered conversations and integrations run $200–$1,000/month. Custom chatbots built specifically for your business, with unique conversation flows, CRM integration, and trained on your specific data, typically cost $5,000–$15,000 to build plus $200–$500/month for hosting and AI usage. At MooseBase, our custom AI chatbot solutions include conversation design, integration with your systems, and ongoing optimization to maximize lead capture and customer satisfaction.

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Do small businesses need a chatbot?

A chatbot isn't essential for every small business, but it's increasingly valuable for businesses that receive frequent customer inquiries, need to capture leads outside business hours, or want to reduce repetitive support tasks. If you regularly miss calls, lose leads overnight, or spend hours answering the same questions, a chatbot can make a significant impact. Service businesses like dental offices, law firms, HVAC companies, and restaurants see particularly strong results. The question isn't whether you can afford a chatbot - it's whether you can afford to keep losing leads at 10pm when no one's answering the phone.

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What can an AI chatbot do for my business?

An AI chatbot can answer customer questions instantly 24/7, capture and qualify leads, book appointments, provide pricing information, guide visitors to the right service, collect customer information, handle basic support requests, and reduce your team's workload. Modern AI chatbots understand natural language and can hold genuine conversations - not just follow rigid scripts. They can integrate with your calendar, CRM, and other tools to take real action. For most small businesses, the biggest wins are capturing after-hours leads (when 40% of website visits happen) and instantly responding to inquiries instead of leaving potential customers waiting.

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How long does it take to set up a chatbot?

Setup time depends on the type of chatbot.

A basic off-the-shelf chatbot with pre-built templates can be live in 1–3 days. A customized chatbot with tailored conversation flows, FAQ training, and basic integrations takes 1–2 weeks. A fully custom AI chatbot with deep system integrations, custom training data, and advanced conversation design takes 3–6 weeks. The biggest time investment is conversation design - mapping out the questions your customers ask and crafting natural, helpful responses. At MooseBase, we handle the entire setup process including conversation design, testing, and integration with your existing tools.

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What is the difference between a chatbot and live chat?

Live chat connects customers to a real human agent in real time.

A chatbot uses AI or pre-programmed responses to handle conversations automatically. Live chat offers a personal touch but requires staff availability - if no one's online, the chat goes unanswered. Chatbots work 24/7, respond instantly, and handle unlimited simultaneous conversations, but may struggle with complex or emotional issues. The best approach for most businesses is a hybrid: an AI chatbot handles initial questions, qualifies leads, and answers FAQs, then seamlessly hands off to a human agent when the conversation requires a personal touch or expert knowledge.

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Can a chatbot book appointments?

Yes, modern AI chatbots can book appointments directly by integrating with calendar tools like Google Calendar, Calendly, Cal.com, or your practice management software.

The chatbot asks for the customer's preferred date and time, checks real-time availability, and confirms the booking - all without human intervention. This is one of the highest-ROI chatbot features for service businesses. Dental offices, law firms, salons, and consulting firms see immediate benefits. Chatbots can also send appointment reminders, handle rescheduling, and reduce no-shows. At MooseBase, appointment booking is one of the most popular features in our custom chatbot builds.

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Will customers hate talking to a bot?

Not if it's done well.

Studies show 69% of consumers prefer chatbots for quick answers, and satisfaction rates for AI chatbots now rival human agents for routine inquiries. Customers get frustrated with bots that are poorly designed - giving irrelevant answers, running in loops, or making it impossible to reach a human. The key is setting clear expectations (let visitors know they're chatting with AI), providing genuinely helpful responses, and offering an easy handoff to a human when needed. A well-designed chatbot that instantly answers questions at 2am is far better than a contact form that gets a reply 18 hours later.

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What is the ROI of an AI chatbot?

Most businesses see 3–10x ROI from AI chatbots within the first 6 months.

The math is straightforward: if your chatbot captures just 5 extra leads per month that you would have missed (after-hours visitors, abandoned pages), and your average customer value is $1,000+, the chatbot pays for itself quickly. Beyond lead capture, chatbots reduce support costs by handling 60–80% of routine inquiries without human involvement, free up staff time for higher-value work, and improve customer satisfaction through instant responses. Track ROI by measuring: leads captured via chatbot, conversations handled without human intervention, appointment bookings, and customer satisfaction scores.

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Should I build a custom chatbot or use an off-the-shelf solution?

Off-the-shelf chatbots (Tidio, Drift, Intercom) work well for basic FAQ answering and simple lead capture.

They're quick to set up and affordable ($50–$200/month). Custom chatbots are worth the investment when you need: deep integration with your specific tools (CRM, scheduling, inventory), conversations trained on your unique business knowledge, complex multi-step workflows, or a brand-specific personality. Custom bots convert better because they understand your business intimately. Start with an off-the-shelf solution if you're testing the concept. Upgrade to custom once you've proven chatbots drive value and want to maximize their impact.

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Can a chatbot qualify leads?

Yes, lead qualification is one of the most valuable things a chatbot can do.

The chatbot asks strategic questions - budget range, timeline, service needed, business size - and scores or categorizes leads before passing them to your sales team. This means your team only spends time on qualified prospects, dramatically improving efficiency. A well-designed chatbot can ask qualification questions conversationally, making it feel helpful rather than interrogating. It can then route hot leads to immediate follow-up, add warm leads to a nurture sequence, and politely direct unqualified visitors to self-serve resources.

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Do chatbots work on WhatsApp?

Yes, AI chatbots can work on WhatsApp through the WhatsApp Business API.

This lets businesses automate conversations on the world's most popular messaging platform (2+ billion users). WhatsApp chatbots can answer questions, send order updates, book appointments, share product catalogs, and process payments - all within the WhatsApp interface your customers already use daily. WhatsApp chatbots are particularly effective for businesses with international customers or in markets where WhatsApp is the primary communication channel. Setup requires WhatsApp Business API access and a chatbot platform that supports WhatsApp integration. MooseBase can build custom WhatsApp chatbot solutions for your business.

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What is conversational AI?

Conversational AI refers to technologies that enable computers to understand, process, and respond to human language naturally.

Unlike rule-based chatbots that follow rigid decision trees, conversational AI uses natural language processing (NLP) and machine learning to understand intent, context, and nuance in human messages. This means it can handle unexpected questions, understand typos and slang, maintain context across a conversation, and provide relevant responses even for queries it wasn't explicitly programmed to answer. Modern conversational AI (powered by large language models) can hold remarkably natural conversations and is transforming customer service, sales, and support across every industry.

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How do I train an AI chatbot?

Training an AI chatbot involves providing it with the knowledge and context it needs to answer questions accurately.

Start by compiling your FAQs, service descriptions, pricing information, policies, and common customer scenarios. Modern AI chatbots can be trained by feeding them your website content, documents, and past conversation logs. The chatbot learns your business terminology, pricing, processes, and communication style. Fine-tuning involves testing conversations, identifying gaps, and adding information where the bot struggles. Training is an ongoing process - review chatbot conversations regularly, update its knowledge base, and refine responses based on real customer interactions.

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Can a chatbot handle customer complaints?

A chatbot can handle the initial stages of a complaint - acknowledging the issue, gathering details, and showing empathy - but complex or emotionally charged complaints should be escalated to a human. Well-designed chatbots can: acknowledge the customer's frustration, collect specific information about the issue, offer immediate solutions for common problems (refund status, reschedule, etc.), and create a support ticket with full context for your team. The key is fast, smooth escalation - when the chatbot recognizes it can't resolve an issue, it should hand off to a human agent with full conversation context so the customer doesn't have to repeat themselves.

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What happens when the chatbot can't answer a question?

A well-designed chatbot has clear fallback behavior for questions it can't handle.

Best practices include: acknowledging it doesn't have the answer, offering to connect the visitor with a human agent, collecting the visitor's contact information for a callback, suggesting related helpful resources, and logging the unanswered question for future training. The worst thing a chatbot can do is give a wrong answer or loop endlessly. At MooseBase, we design chatbots with graceful escalation paths - the bot recognizes its limitations, provides a smooth handoff to your team with full conversation context, and learns from the gap to handle similar questions in the future.

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Do chatbots work 24/7?

Yes, one of the biggest advantages of chatbots is 24/7 availability.

Unlike human agents who need breaks, sleep, and time off, chatbots respond instantly at any hour - midnight, weekends, holidays. This is critical because 40%+ of website traffic often occurs outside business hours, and visitors who don't get immediate answers typically leave and contact a competitor. A 24/7 chatbot captures leads, answers questions, and books appointments while you sleep. It handles unlimited simultaneous conversations without wait times. For many small businesses, the after-hours leads captured by a chatbot alone justify the entire investment.

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How do I measure chatbot success?

Measure chatbot success using these key metrics: conversation volume (total chats initiated), engagement rate (percentage of visitors who interact), lead capture rate (conversations that result in contact info), resolution rate (questions answered without human help), handoff rate (conversations escalated to humans), customer satisfaction (post-chat surveys), response accuracy, and conversion attribution (leads and sales traced to chatbot interactions). Set baseline measurements before launch and compare monthly. A successful chatbot should show increasing engagement, high resolution rates (60–80%+), positive satisfaction scores, and measurable lead generation. Review conversation logs regularly to identify improvement opportunities and training gaps.

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