Category: How-To

I like cooking. I don’t cook often, but when I do, I want to make something special. And meal kit food delivery companies are the best choice for people like me. Meal kit services, especially subscription-based, are quite popular. 17% of adults between 25 and 44 currently receive meal kit delivery services in the U.S. 

If you want to see the bigger picture of the growing fresh-food meal kits in the United States, here are some figures. 

The global meal kit delivery services market size was valued at USD 15.21 billion in 2021 and is expected to witness a compound annual growth rate (CAGR) of 17.4% from 2022 to 2030? according to Market Analysis Report. 

The online segment dominated the market for meal kit delivery services and accounted for the largest revenue share of 63.2% in 2021. The offline platform is expected to register a CAGR of 17.8% in the market for meal kit delivery services from 2022 to 2030.

But wait, why is it so popular?  

The answer is because people want to eat healthy homemade food but have no time to go to grocery stores or supermarkets. For such people, it is more convenient to pay a company that will deliver fresh ingredients and recipes.

Below, you will find a ready-to-market strategy for starting a meal kit business in your neighborhood. By following the steps described below, you can create your own meal-kit business, find unique sales propositions, and even develop a website or mobile app. 

BALANCING THE SUPPLY AND DEMAND WITH AN ON-DEMAND GROCERY DELIVERY APP

What is a meal kit subscription service?

The idea behind a meal kit delivery business is simple yet smart. Such companies deliver pre-packed, and sometimes partially-prepared food ingredients with a book of recipes right to your doorstep. Meal kits already include all the ingredients to cook a dish. You can use ingredients and recipe cards to cook a meal within 30-40 minutes. So, you no longer stress that you forgot to buy milk or sugar, preventing you from cooking. 

Meal kit delivery business: history and numbers

Now, let’s make a quick overview of the meal kit industry, key figures, and issues meal kit business owners face. 

• Origins

The concept of meal kit delivery appeared in Sweden in the late 2000-s. This business model became popular and quickly spread to other Northern European countries. In 2012, meal kit delivery companies from Europe, such as Blue Apron and HelloFresh, entered the U.S. market and became popular among Americans. 

• Perspectives

In 2017, there were over 150 meal businesses in the U.S., and the meal kit business industry was estimated to reach $2.2 billion globally. Experts predict that in 2020, the meal kit business will make up 1.3% of food and beverage sales. 

Such growth of meal kit popularity concerned supermarket owners, who started to lose customers and income. In response, supermarkets began to make their own meal kits and sell them at their physical stores. 

• Main problems

Despite a rapid increase in customers, most meal kit business owners faced a low customer retention rate.

• New customers tried free meal kits from companies and never used this service again. 
• Most customers used the meal kit service for just 5-8 weeks. 
• Around 6-12% of customers continued using their subscription after 3 months. 

Thus, you need to concentrate your marketing activities on retaining your customers. 

Now, let’s find out how the meal kit delivery business makes money. 

STAGES OF LOGISTICS MOBILE APP DEVELOPMENT

How meal kit delivery business model works

Most meal kit delivery businesses operate on a subscription basis. This means you pay a weekly, monthly, or annual service fee, and then, receive pre-packed meal kits and recipe cards. For example, let’s look at the HelloFresh business model. 

This most popular meal kit delivery service charges $7.49 in shipping fees. Five recipes per week for two persons will cost you $89.90. 

To attract new customers, the service offers discounts. So, if you visit the HelloFresh website for the first time, you will receive -$22.01 discount, and five recipes per week for two persons will cost you $67.89, while you save -$22.01 on deliveries. 

HelloFresh offers four types of weekly menu:

• Meal and Veggies
• Veggies
• Family and friends
• Low calories menus

The company changes the menu for each meal category every week in order to increase the customer retention rate. As a customer, you will receive new meals each week, thus never get bored eating the same food. 

If you want to skip one week, you can unsubscribe weekly delivery without paying any penalties. 

Now, let’s see what you need to do to start your meal-kit business. 

HOW TO BUILD A FOOD DELIVERY APP LIKE UBEREATS

The APP Solutions Experience: Success Story

Alfred Ibiza is an on-demand delivery mobile app that connects restaurants, stores, couriers, and customers in Ibiza. The app allows customers to order from restaurants, pharmacies, and supermarkets, listed on the platform.

Our main goal for the Alfred Ibiza project was to build a platform that would simplify ordering and delivering products on Ibiza island and help party goers to receive their orders on time. We wanted the platform to be equally useful for business owners, couriers, and customers.

We managed to develop the Alfred Ibiza platform within just three months, at a total project cost of $70,000, 50-60% cheaper than the average development cost of a food delivery app.

The platform includes an app for customers, couriers, an admin panel for restaurants with only necessary functions. Besides this, we also developed a marketing landing page to promote the Alfred Ibiza platform.

You can find more fascinating stories in our portfolio.

WHAT TECH STACK TO CHOOSE FOR YOUR PROJECT

Launching meal kit delivery in 5 steps 

You can launch an ingredient and recipe meal kit service even without significant investment. However, starting a meal kit delivery startup still requires some operations as listed below. 

Step 1. Get Legal Licenses

The first thing to do when launching a meal kit delivery service is to get all the licenses and prepare other legal documents from your government. 

Below, we list essential legal documents for U.S. citizens. 

• Business License

To open and operate your business in the United States, you need a business license that legitimizes your company as a legal entity. Each state has its regulations for issuing business licensing and related fees that could be a flat rate or a percentage of your total sales. 

To get a business license, search for your state + business license on Google search. Then, follow the application procedure on your state government’s site. 

You’ll need to pay approximately $50 for the registration and $25 to $7,000 for the license. The total cost will depend on your business type and expected profit. 

Don’t forget to renew your license each year and pay for it on time. 

• Employer Identification Number (EIN)

EIN, a tax ID number, is the document you need to get from the Internal Revenue Service (IRS). You can apply for an EIN through the IRS website. You can also apply by fax, phone, and even mail.  But don’t expect immediate results. The IRS only issues one EIN per day. The good thing about EIN is that it is free. 

• Food Service License

You can receive a food service license from the city or county health department. The health department will inspect the place where you are going to make meal kits to check out whether your business complies with all restaurant food safety regulations or not.

To receive this license, you need to apply to your local health department via the internet or in-person. During the application process, you need to give the name of your food service, an address for a permanent kitchen facility, and the owner’s personal information. 

A food service license cost varies from $100 to $1000 depending on your location and number of employees. 

Now, it is time to analyze your competitors. 

Step 2. Analyze competitors

By knowing your competitors, you can make a bullet-proof business plan. 

Let’s analyze the biggest food kit services in the U.S., such as HelloFresh and Blue Apron, with half of the whole U.S. meal kit market share. 

HelloFresh 

HelloFresh was launched in 2011 in Berlin. Now the company has 850,000 customers and operates in nine countries across three continents. Its 2,000 employees work to deliver 9 million meals a month. 

The reason for such success lies in HelloFresh’s business model. The company delivers groceries right from farmers, cutting out all the middlemen, such as supermarkets and grocery stores. 

In such a way, using HelloFresh meal kit delivery is 75% cheaper than shopping for ingredients at grocery stores.

In 2017, HelloFresh, together with other meal kit services, was criticized for using wasteful packaging and viewed as environmentally unfriendly. 

Since 2018, the company has tried to reduce food waste by keeping and preparing ingredients in the appropriate proportions. 

Blue Apron Inc. 

Blue Apron has operated in the United States since 2012. The most successful year of Blue Apron was in 2017 when the company received $881,19 million. But, with time, the company’s income has decreased. 

In 2019, the company generated $455 million global net revenue, down from $668 million in 2018. Currently, the company receives 2,482 orders per month, with a $258 average revenue per customer. 

In 2017, the company also received extensive criticism for wasteful packaging. In response, the company has tried to limit environmental impact by using recyclable ice packs and packaging. Besides this, BlueApron has a portion control that calculates the portion of ingredients to reduce food waste. 

Step 3. Build your brand

Since you are serious about opening a recipe kit delivery service, you need a unique sales proposition (UCP). In plain words, you need the answer to the question, how you differentiate from other meal kit companies.

Below we gathered several ideas on how you can differentiate from your competitors. 

• Eco-friendly meals 

Since your competitors were criticized for being not eco-friendly, you can turn this into your advantage. Moreover, the continually growing number of eco-friendly and environmentally aware people only proves that this is a win-win idea. 

You can implement this UCP by selling veggies from local eco-farms, packaging meal kits in eco-packages from recycled cardboard, and delivering your meal kits in an eco-friendly way – exclusively on bicycles. 

• Recipes for any occasion 

Your menu can include meal kits for special occasions, such as birthday parties or outdoor activities with friends. 

In a B’ day meal kit, you can include only recipes that take about one hour to cook. This is a great idea because most of us believe that you need to spend at least 3 hours to cook something for your guests. 

As for outdoor menus, you can deliver meal kits to individual’s homes and nearby locations where people make barbecues. Thus, your meal kits can include mushrooms, sausages, corn, cabbages and steaks for the best outdoor party. 

• Special diet meal kits 

You can turn preferences in food and cultural differences into your unique sales proposition. For example, your menu could include gluten-free ingredients. Another option is to sell kosher, vegetarian, or halal meal kits to locals. 

FUNCTIONAL VS NON-FUNCTIONAL REQUIREMENTS: MAIN DIFFERENCES & EXAMPLES

Step 4. Gather meal kit recipes and find suppliers

Once you know the core mission of your meal kit business, it is time to gather recipes that will reflect it. 

You can rate recipes with stars by the level of their complexity. For example, meals that are easy to cook will have one star, and the most complex – five stars. Don’t forget that you need to gather as many recipes as possible, so you can change the weekly menu and always surprise your customers. 

During this step, you also need to think about where you will get ingredients. Thus, you need to find grocery and meat suppliers among local farmers and vegetable warehouses.

Step 5. Develop a meal kit app or a website

For selling and delivering meal kits, you will need a mobile app or website that will charge your customers’ subscription fees and send you their details. We already have an article on how to hire the development team, so check it out. 

Once you select the development team, ask them for a quote. If you will develop your project with us, the software development process will look like this:

Pre-sale

You fill in the contact form, and our business development managers get in touch with you to clarify your requirements for the project and send NDA (a non-disclosure agreement). Next, a business analyst analyzes your requirements, breaks your project down into modules and features, and sends it to a developer for an approximate estimation of your project. 

After you agree on this estimate, we will start the Discovery phase. 

Discovery phase

We need around 1-3 weeks to create a technical specification for your project. We also suggest the app’s or website’s architecture, mockups, and even clickable prototypes of the main project screens during the Inspection phase. 

Project initiation

Once you have a project specification at hand, we will develop more detailed project development costs. After we agree on the project costs and essential features to implement first, we will send you an agreement to sign. Then, we will arrange a small video call to introduce you to our team. The typical team composition includes developers, project managers, quality assurance specialists, and designers. 

Project development 

Next, the team will break-down all project features into iterations to schedule the project development process. One iteration length is 1-2 weeks. 

Once the new functionality is implemented, QA specialists test it, find bugs, report to the project managers so that the developer can fix the bug. 

Then, the developer deploys the code to the project’s prominence, with the rest of the projects developed parts. 

During the project development process, we send you reports every two weeks. In such reports, we explain how much work was done, and what features the team is going to implement next. 

After the team implements all features, we will run the final demonstration session for you, and give all accesses to your project so that you can manage it without external help. 

HOW TO MAKE AN APP: LIFE CYCLE OF MOBILE DEVELOPMENT

Launching an online meal kit delivery business: the final word 

The meal kit delivery services industry is a very prospective niche for investment since it is expected to grow in the next few years. At the same time, to start a food and recipe delivery business, you do not need significant investment. 

There are only two main objects of expenditure – receiving necessary licenses and web or mobile app development. At the same time, you can create unique sales propositions, write a business plan, gather recipes, and find suppliers without hiring extra specialists. 

What our clients say 

We no longer associate the word “marketplace” with grocery shopping early Sunday morning. Now, thanks to Amazon, eBay, and Etsy, marketplaces are strongly associated with digital shopping websites, where you can buy any product you can imagine. But why are such trading websites so popular?  

Two-sided platforms offer small businesses an effective selling channel. In such a way, marketplaces eliminate the need to spend money and time maintaining their own online shopping store. 

For such a service, site owners change commissions and earn money without actually selling anything. 

If you can’t wait to launch your own marketplace business, you are in the right place. This article is about developing a marketplace start-up in six steps and turning it into a profitable business. 

But first, let’s define the ultimate meaning of a digital trading platform. 

What is the digital marketplace?

A marketplace is a platform that gathers retailers who offer their products and numerous buyers who buy from them. In a nutshell, the website performs as an intermediary between buyers and sellers. Such a website could be in the form of a website or mobile app, targeted to different users. 

Types of marketplaces

You need to select the type of marketplace and define end-users. There are B2C (business to clients), B2B (business to business), and P2P (peer to peer) marketplaces. 

Let’s look at each marketplace type in more detail.  

• Business to clients

B2C marketplaces serve small businesses and individuals. While some marketplaces, like Amazon, offer products, others, such as TaskRabbit, offer services.

• Business to business

There are also B2B marketplaces, which means sellers and buyers sell and buy wholesale products. The list of B2B marketplaces includes websites like RapNet that sell diamonds and Alibaba B2B.  

• Peer to peer

Don’t forget about P2P marketplaces, where both buyers and sellers are individuals. One example is Airbnb that offers apartments and houses for rent. 

However, the market of trading platforms is even more granular, and each project varies with the products and services it includes. 

There is a marketplace for selling used products such as Decluttr and Ubup. 

There are also job marketplaces, like UpWork and Fever, where you can find freelancers for various tasks. 

Let’s concentrate on developing true online marketplaces where vendors can sell physical products to consumers.

But how does such a marketplace differ from a regular e-commerce website? 

Online marketplace vs. online store

You need to be aware of six differences between the marketplace and an e-commerce website:  

• The number of sellers. As an online store owner, you perform as a single seller at your e-commerce website. As a marketplace business owner, you do not need to sell anything to receive profit, since many sellers offer their goods, through whom you can earn money. 
• Product variety. Typical online stores offer up to 10 product categories, but marketplaces include products from different industries. For example, Amazon, the biggest online marketplace, counts 36 categories and over 12 million products, including books, media, wine, etc. 
• Features. The online store consists of two parts – an admin panel to manage users and products, and a customer profile to add products to a shopping cart and complete the checkout. The two-sided platform includes features for three types of users. They are an admin panel to manage users; a seller profile to list products, manage orders, receive payments; and a buyer profile, which has the same functionality as one in an online store. 
• Traffic load. Even popular online stores hardly count over 10,000 users per month. Online marketplaces should be powerful enough to handle substantial traffic loads. For example, Amazon counts 5.7 billion shoppers each month. 
• Tech stack. To build an e-commerce website, you can leverage e-commerce platforms. But to build a vast marketplace, those platform capacities wouldn’t be enough. Thus, consider using such popular marketplace builders as Zielcommerce, 3Dcart, Arcadier, or Yo!Kart. If their features are still not enough for you, you can hire developers to build a project from the ground up. 
• Monetization. When you are managing an online store, direct purchases are your primary source of income. However, owning a marketplace opens new streams of earning money, including service commissions, promotions, etc. We will look at them later. 

In a nutshell, an online marketplace is like an e-commerce website on steroids. Such platforms include more products provided by multiple sellers and substantial monthly traffic loads. 

Now, let’s see how to develop a marketplace start-up from scratch or using existing platforms? 

Building an online marketplace website: SaaS vs. from scratch 

When building a marketplace you can leverage an existing e-commerce platform with pre-build features. Such platforms are known as SaaS solutions, which means the software as a service. You also can hire a development team to build an online marketplace from scratch. 

In both cases, you end up with your own two-sided platform. But, there are essential differences between these approaches to pay attention to. Before deciding in favor of a platform-built or custom-built marketplace, consider the following: 

• Customization

By customization, we mean adding features and changing the design to meet your business needs. In the case where you need a UI/UX design tailored to your brand and a bunch of sophisticated features, consider building a project from scratch. If, however, you want to create a simple project with essential features and template design, you can use a pre-coded platform. 

• Traffic load

A high traffic load negatively impacts marketplaces that are not ready for it. Thus, they can crash and cause inconvenience to users. If you expect your platform to handle around 10 000 users per month, a platform-built site will perfectly meet your needs. 

However, if you are going to develop a marketplace like Amazon with a high traffic load, you need custom marketplace development. In this way, developers will create the infrastructure on cloud servers that automatically expand operating capacities. So, the project architecture can work without downtimes, even with 1,000,000 website visitors per second. 

• Timeframes 

In case you expect to launch your platform in 1 or 2 months, rely on existing marketplace builders. Thus, you need to make very few changes to the SaaS marketplace to launch it within a short period. 

When timeframes are not your main priority, build such a project from scratch. 

• Addons 

Take at least some time to research the additional features you can add after launching your trading platform, since, as your business grows, you will need something more than just a shopping cart and checkout for buyers, and a product catalog for sellers. 

Investigate whether your platform’s store has add-ons for email marketing and advanced product recommendation tools, as you will need them sooner as you think. 

In the case of needing more add-ons,  developing a custom online marketplace will work the best. 

Once you find room for new features, your development team can code and add it to your custom project within several weeks. Thus, you receive total control over marketplace website functionality. 

• Tech complexity

If you have at least a basic knowledge of coding, know how to buy a domain name, and set up a server, choose SaaS. 

If you have to google what  “server” means, then hiring web developers is your option of choice. Even if you are not going to create a unique marketplace and the primary SaaS platform meets your needs, we suggest you team up with a development team to set up your marketplace. 

Now let’s see what it takes to launch such a project. 

How to start an online marketplace in 6 steps  

Creating a marketplace includes numerous activities. You need to define your business model, make a feature list, and hire developers. Let’s find out what it takes to develop such a project. 

Step 1. Choose your revenue models 

The first thing you need to do is decide on how the website will bring you money. You need to select your monetization plan among the following options: 

Commission model. You charge a commission on any purchase made via your website, added to the product cost. Thus, when a buyer purchases a product, one also pays your commission during the checkout. Marketplaces that successfully use commission models are AirBnB, eBay, and Amazon. 

Listing model. You offer retailers to place a limited amount of products for free. If they want to extend their product catalog with more goods, they must pay you for such an option. For example, eBay allows vendors to place 50 products for free each month. In order to add more products, the platform charges retailers 5 and 30 cents depending on the product category. 

Paid promotions. Vendors pay you a promotion fee so their products appear first in the search results. Promotion fees work great for marketplaces with numerous products within the same category and are currently applied by Etsy, a platform with DIY products.  

If you don’t know which strategy will work for your marketplace, ask your development team for additional business analysis. 

Step 2. Gather core features 

Below we have listed must-have features for all types of users – buyers, sellers, and administrators. 

Features for a customer app 

The customer application should include all the functionality to find products, add them to the shopping cart, and checkout. Thus, the main features of a customer’s app are: 

• Buyer profile with personal information, shipping address, and bank details
• Search bar to find products 
• Shopping cart to gather products one wants to buy 
• The payment gateway for buying products during the checkout 
• Review and rating to share one’s experience with a particular vendor or  product 
• Push notifications to track the order and delivery status 

Features for a seller app 

To list and sell products, the seller app requires the following functionality: 

• Seller profile with detailed information about the seller, one’s location, and bank account details
• Product catalog to add, edit, and delete products
• Product page to upload product images, set the price, and add product description 
• Order page to manage upcoming orders 

Features for an admin panel 

The admin panel is aimed at managing communication between both sellers and buyers. Thus, your admin panel should include the following functionality 

• Dashboard with information about new and completed orders 
• User management to add, edit, and delete users 
• Product management for changing the information on the product page 
• User analytics to show the number of buyers and sellers, buyer purchase patterns, etc. 

Now that you have a business plan and feature list at hand, it is time to hire your development team.  

Step 3. Hire a development team 

We advise partnering with a development team for both custom marketplace development and setting up a SaaS website. If you are looking for tips on finding a reliable tech partner, check out the article about hiring web developers with handy tips. 

Once you select developers with relevant cases in their portfolio, you need to contact them and explain what type of project you want to receive. You can also send your idea about monetization models and features you want for your project. 

At the APP Solutions, we can estimate your project based on your feature list and monetization models. 

Our customers receive a more detailed project estimation at the end of the Discovery phase. It is a 2-3 week period during which we conduct an in-depth technical and business analysis of your project, create project documentation, suggest architecture components and technologies that apply. 

After we send you the final project estimate, we arrange a kickoff meeting with you and our development team members. During the meeting, we will define the high-level project goals and agree on the communication plan. 

We schedule demonstration sessions to show you our progress in the communication plan. Next, we start creating designs for your website or searching for the most suitable design template. 

Step 4. Create UI/UX design 

The design defines how your marketplace is convenient for users. Besides this, the design should also reflect your unique brand and be recognizable. Thus, even template designs from SaaS platforms require personalization, such as changes in color scheme, adding your logo, and others. 

If you decide to develop a project from the ground up, designers create the look of your website that meets your business needs within the following steps:

• Wireframes. We create the layout of all elements, define how product categories will look, and design elements for the home page. 
• Clickable prototype. We gather all the elements and emulate the customer journey and several project scenarios in a clickable prototype. To create such prototypes we leverage Figma, a professional online tool for mobile and web designers. 

[The APP Solutions clickable prototype]

• Polishing the result. Apart from critical scenarios, we also create other screens for your platform, such as the vendor cabinet, checkout, admin panel, and its features. 

Once the design is ready, we start the coding process. 

Step 5. Coding the MVP 

The MVP means the minimum viable product, the first project version. It includes core features enough for sellers and buyers to use the platform and rate it. 

We define the functionality for the project’s MVP during the discovery place. In such a way we reduce the time for the development and the project costs. 

Thus, you can receive a ready-made website within 2-3 months, whereas the development of such a project with bells and whistles requiring 6-8 months can cost you a fortune. 

• Our solution architect defines the core project elements and considers technologies for the project infrastructure. 
• Developers set up the architecture on the cloud or on-premise servers. 
• Developers begin to add features from the technical documentation. 
• Once the new functionality is built, quality assurance managers test the code and fix errors. 

• Developers deploy the tested functionality to the life environment for the rest of the project.
• Developers integrate third-party services via API, such as payment gateways and shipping tracking tools. 

After we ensure the project works without bugs, we run a demo session with you. We show you how the seller,  buyer, and admin panels work during such a demo. If needed, we can also create instructions on how to manage your project.  

Step 6. Launch the marketplace 

We make your two-sided platform available for users and give you total access to the project’s code, infrastructure, and third-party services. 

We also provide technical support during the first month after the project launch to fix any errors. If you want us to monitor the site performance for a longer time, we can sign a support agreement for two or six months and even a year. 

Now you have a marketplace with all the necessary features and a development team to maintain it. So, the last thing remaining is to attract buyers and sellers. 

As you can see,  marketplace development requires both time and resources. But only partnering with a reliable development team ensures a decent result. Thus, finding good web developers with relevant tech expertise is the only way to successfully launch a project. We can provide you with full-cycle web development services – from project documentation to technical support after the marketplace launch. Our team is here to discuss your business idea and suggest top-notch solutions to bring it to life. 

What our clients say 

Related readings: 

Calmerry Telemedicine Platform Case Study 

Nioxin Consultation App for Coty-owned Brand Case Study 

Just when the world thought app innovation had reached its peak, and the app market is at a saturation point – the Clubhouse app happened. The arrival & success of the Clubhouse app is conclusive evidence that technology keeps evolving. 

This article offers insights into the podcasting industry, including the technologies required to develop a social media app like the Clubhouse chat app. 

What is the Clubhouse App?

The Clubhouse app is an audio-based social media program; the first of its kind. It hosts talkback radio, house-party, & conference call live podcasts. Just as Instagram took the spotlight in 2010, and TikTok in 2020, so will the Clubhouse app in 2021. Within a few weeks of its release, the application amassed 600,000 users. And now, at the time of writing this article, it has leaped to over 2 million people. 

[Source]

The Clubhouse app is getting traction at an unprecedented rate. While its popularity is growing, so is its valuation. Talking about valuation, a few weeks after the app was launched, it was valued at $100 million. Over time, this figure has soared to a staggering one-billion dollars!

Clubhouse Isn’t the New TikTok. It’s The New LinkedIn. Although Clubhouse is a social media, it does not operate like most of them. It tries to balance business and pleasure, more like LinkedIn. The Clubhouse community also comprises individuals who normally would talk business on Twitter. 

To make this audio-based chat app worthwhile for important activities, it comes with a few very important features, e.g. the Clubhouse rooms. Members can create profiles and link them with their Twitter & Facebook profiles.

Clubhouse may be better than LinkedIn because of its ability to strike a perfect balance between professional and personal activities in the rooms. This is an important attribute.

How Does the Clubhouse App Work?

The Clubhouse social network app is only available to iPhone users. Joining the platform is only upon invitation. To open a Clubhouse account one has to pay subscriptions. One of the rights reserved by the Clubhouse administration is the ability to change the prices at any time.

To get started with the Clubhouse social media app, you open the app and go to your profile to see a list of rooms. Clubhouse allows you to join a room of your choice, or create one.

Every Clubhouse room has a distinct topic hosted by either a pioneer or an expert in the field. It’s not uncommon to find journalists, celebrities, and venture capitalists hosting Clubhouse rooms.

If you wish to contribute something to the Clubhouse rooms, you have to “raise your hand”. The host of that particular Clubhouse room will decide whether to invite you to the conversation or not.

Clubhouse app: what is it and how do you get an invite to the exclusive audio app?

The Clubhouse is very exclusive. For one to become a member they should receive an invite to join the app. The invite will only come from a friend who already has a Clubhouse account. After the invite, and when you have become a member, you can also invite 2 exclusive friends. Members can invite their friends to download the Clubhouse app via their phone numbers.

Some of the world’s top thought leaders who have already made appearances on the Clubhouse voice chat app are Elon Musk (Tesla CEO), and Mark Zuckerberg (Facebook founder). Their presence caused quite a stir. The Clubhouse app may still be smaller than its social media predecessors. But, its growth curve confirms it’s the next big thing, it will conquer social media.

How do you set up a clubhouse Club?

In order to start a club in Clubhouse, the first thing is to create an account to become a member. Subsequently, go to your profile and select the gear icon; this will get you to settings. On the settings page, go straight to the FAQ section and click “How can I start a club”. A detailed description of how you can start to open a club is given.

To be eligible for starting a club, a Clubhouse member should have hosted a room before. In order to host a room, you open the app and start a room. A room is started by inviting friends to come and join or enabling any persons who want to join to get in. After starting at least 3 rooms, you can then proceed.

What do clubhouses do?

The Club’s functionality enables members to create and join private groups. These private groups will have your specific preferences. Three types of users can be found in private groups/ Clubs and these are the founder, members, and followers. Clubs will receive notifications based on their interests.

Are there alternatives to the Clubhouse App?

If you would like to develop a podcasting application such as the Clubhouse voice app this year, you are on the right track. Android users have forever searched for a similar app on the play store, but to no avail. It’s high time someone started some competition.

There is enough revenue to go around for prospective investors in the podcast industry. Analysts anticipate that the global podcasting market will grow at an annual rate of 27.5% from the year 2019 to the year 2027. 

[Source]

What is a podcast, and how does it work?

Simply put, a podcast is an audio broadcast that is made in episodic series. People listen to podcasts while relaxing after a hectic day, driving long distances, or doing some exercises. Any activities that people do while listening to something else fit the category. Podcasts are gaining popularity compared to media such as blogs and vlogs. The reason is that people find them both entertaining and less distracting. 

How to play podcasts

There are two ways through which people can listen to podcasts:

• Downloading/ Streaming online

People can go online using their devices to stream or download content from the RSS feed. The podcast may be played on the podcast website or in a feed reader. 

• Using a player

The alternative to streaming from the RSS feed is to download and use a media player application. Examples may include Pocket Casts or Apple Podcasts. People who subscribe to the RSS will access their podcasts through the player. 

The player will simply synchronize data from the RSS feed. This enables the user to get current episodes and additional details such as file name, notes, and the link to the file (in MP3 format).

What’s RSS?

RSS is an abbreviation that stands for Really Simple Syndication, which is a computer-readable (XML) format used for sharing web content. The RSS enables users & apps to receive updates to a specific web platform. 

If the user prefers to use an aggregator (an application that collects, & displays content or links from various websites), the RSS feed reader will first convert the data into a readable format.

The RSS feed collects information which includes headlines, notifications of updates, summary notes, and links that direct the user straight to the website. Updates are done in real-time and the latest files published by websites will go on top in the RSS feed.

Reasons podcasting apps are the new content platforms

In the US alone, a growth from 51% to 55% of podcast listeners was observed between 2019 and 2020. 

[Source]

Podcast listenership is surging across the globe with no signs of plateauing. The factor contributing to this growth is the emergence of podcasting apps such as the Clubhouse app. The app Clubhouse, and other social media platforms, are instrumental in boosting podcast listenership. Applications like the Clubhouse audio chat app are starting to take center stage everywhere because of the points that follow.

Easy consumption. Podcast apps such as Clubhouse allow consumers to easily find podcasts presenting on topics they like. People today have busier schedules and appreciate something that apps like the Clubhouse allow them to stay entertained and updated while also working.  Clubhouse requires less attention compared to vlogs, blogs, & TV. Other than working, people can also listen to the Clubhouse voice chat app while driving, exercising, or relaxing at home.

Accessibility and diversity. Gone are the days when people relied solely on the radio to listen to programs. The disadvantage with Radio-cast was that listeners needed to be at a certain place to listen to a show. Moreover, only a limited number of topics could be aired. With smartphones, people are not place and time-bound. One can open apps such as the Clubhouse anywhere and at any time. And, the app Clubhouse provides countless topics on-the-go. 

Intimate connection with listeners. With the advent of the Clubhouse social platform, podcasters can now have intimate time with their audience. The platform allows listeners to easily identify their favorite hosts and topics.  When an audience is listening to these hosts presenting on their favorite topics/ show, they connect and hear them talk directly to their hearts and minds.

Social Media Marketing. Many podcasters are using the podcasting platform to promote their other businesses through podcasts. According to a blog by Midroll, about 61% of listeners have admitted to buying a product after a podcast advert.

Podcasts consumer types

Podcast producers can be grouped into 5 major segments:

Large Indies 

This group makes a larger population of Clubhouse podcasters. It comprises independent podcasters who are either influencers or celebrities. Rumor has it that Clubhouse is grooming over 40 influencers (moderators) to succeed on the Clubhouse app. These individuals are getting tools and other help from the Clubhouse executives. Concerning monetization, Clubhouse is currently ad-free. But, Large Indies on other podcasting apps get money through adverts, donations, or commodities. Examples of independent podcasters out there are Sam Harris, Joe Rogan, etc. 

Media Companies

These are big companies that offer media content through several formats. Examples would be newspapers, magazines, and radio-casts. On Clubhouse, several media companies, e.g. Barstool Sports, can be found. Media companies get their money from adverts mostly. Other means involve circulation revenue. Circulation can be described as the number of subscribers. 

Hobbyist Creator

 In the podcast industry, hobbyist creators are persons who produce content, usually without getting revenue. These individuals may not be influencers or celebs. The clubhouse also welcomes hobbyist creators.

Non-Media Businesses & Non-Profits

This group is not driven by revenue but focused on building a brand. Each show produced is for promoting the brand.

Podcast-Only Production Companies

These are organizations that produce their content but rely on platforms such as Spotify to reach their audience. They get revenues through adverts, or broadcast licensing to local and international TV networks, etc. Furthermore, they can produce content for a film.

The Clubhouse app is unique in that it accommodates the producers mentioned in each group. And, the clubhouse can make it possible for these podcasters to reach their audiences effortlessly.

Market predictions of the Global Podcast Hosting Software

The podcast market is expected to grow tremendously between 2019 and 2026. Already, over 1,750,000 podcast shows & not less than 43 million episodes have been produced. These numbers will only grow throughout 2026.

For you to catch a glimpse of the growth rate, there were only 550,000 podcasts at Apple Worldwide Developers Conference in 2018, but in 2021 the estimation is close to two million.

The podcast market key players

The major players in the podcast at the moment are Apple, Pandora, iHeartMedia, Amazon.com, Spotify AB & Sound Cloud Limited. 

These players own the following shares of the podcast market:

• Apple Podcasts (32%)
• Spotify (26%)
• Google Podcasts (3%)
• CastBox (2%)
• Embedded Player (2%)
• Podcast addict (2%)

Key formats 

The podcast market is categorized into the following: panels, interviews, conversational, solo, and repurposed content.

Podcasters on the Clubhouse app uses all of them. The two popular formats that you should know are:

• Interview. This format is currently the highest in terms of revenue. Analysts revealed that in 2019 alone, it accounted for a share of over 30%. Another name for this format is “facilitator”, used when a variety of guests are being hosted by the same individual. What’s believed to make this format attractive is the freshness and originality of each cast. Every guest will bring with them new content, thoughts, and experiences, etc. The audience likes to be continually inspired, engaged, and stimulated by various opinions on different subjects of life.
• Solo. This format is slightly below the Interview format in terms of its revenue share. Concerning how it works, it involves a single person who is a professional in a certain area. This individual may record content giving their views and experiences in their area of specialty. Most independent podcasters entering the podcast industry are picking this format since it’s easy to start. The only requirements are free editing software & a microphone. The Solo format is expected to grow up to 2026.

Key perspectives 

The year 2021 has seen a lot of services implementing podcasts. And, startups in the industry are getting funded & growing and, or, acquired by larger organizations. Below are examples of some of the things you should know.

Spotify

Starting this year, Spotify confirmed that it will allow podcasters to use its platform through paid subscriptions. People can already start signing up. However, before this begins to work, Spotify will test new functionality in its podcast creation tool. Part of this new functionality will enable existing and prospective podcasters (in the US) to publish paid content to their fans. The first to enjoy this functionality, however, will be existing customers.

[Source]

Podchaser

This is a startup that raised over USD 4 million in the creation of what they call the ‘IMDB for podcasts’. Podchaser works the same way as the Internet Movie Database developed by Amazon. Users are given the ability to spot new podcasts as they come. They can review and rate them before adding them to their lists. The CEO also spilled that content of over 8.5 million podcasts which had already been produced, awaiting the launch of the startup.

Acast

Acast, an advertising company for podcasts, bought Radio Public, a company that joined PRX a few years ago. Radio Public started with a podcasting mobile application. But, with time, its leadership shifted focus to providing products and services for podcasters. Examples of the products and services provided include an embeddable web player, pod sites, etc. Today, while part of Acast’s business is to provide these services to podcasters, the other part is still involved in the podcasting mobile app.

Tech Stack for a Podcast App Development 

Entities that need to venture into the podcast industry can do so with The App solutions. If they choose to develop a mobile-only app, The App solutions recommend that they know the SDKs (Software Development Kits) and technologies for their project tech stack. If the client may need help, the CTO, Igor Kopaniev advises the following solutions:

Agora.io

Agora.io enables developers to add HD voice & video communication to applications via a dynamic SDK. Since the tech used by Agora.io can manage billions of minutes of real-time communication annually, developers can support over two thousand users in one call. Regarding implementation, Agora.io is easy, inexpensive, and seamless. While all this is great, clients and developers should also consider data security. Agora.io was formed by a Chinese company, thus, has reliability issues.

Instead of Agora.io, here are some alternatives you need to know:

Live Streaming On AWS

The abbreviation AWS stands for Amazon Web Services. AWS offers 2 Over-The-Top (OTT) streaming solutions for live videos. These two solutions are AWS Elemental MediaPackage and AWS Elemental MediaLive. 

The above solutions offer viewers smooth live streaming of content. The MedialLive channel comes with dual outputs and inputs, plus some for the MediaPackage. When Live Streaming on AWS, the MediaLive, and the MediaPackage are both configured to encrypt & pack your content via an adaptive bitrate streaming on screens through HTTP Live Streaming.

Storage. The AWS Elemental MediaStore is augmented to store media. It provides great performance at low latency, the very thing needed for quality live video streaming.

Latency. To effectively minimize latency, the MediaStore works with the Amazon CloudFront. The Amazon CloudFront connects at the MediaStore’s endpoints to deliver content at high speeds and low latency. Also, an Amazon CloudWatch will work as a dashboard that monitors every request made to the MediaStore. It reveals the overall performance of the workflow.

Security. Live Streaming On AWS is reliable concerning security. CloudFront provides sophisticated security that includes full HTTPS support and encryption at the field level. CloudFront also comes with an AWS Web App Firewall, Shield, & Route 53 to prevent many forms of attacks, including DDoS attacks.

Jitsi

Libjitsi is a sophisticated Java media library that allows secure communication of media. Apps can securely stream, capture, playback, encrypt, decode video and audio flows. Additionally, it allows for advanced functionalities, e.g. audio mixing, management of multiple streams, and the attendance of video & audio conferences to be possible.

Libjitsi was initially a part of Jitsi but it was tweaked to allow other projects to utilize it. The distribution of Libjitsi will follow the Apache license terms. 

On the other hand, Jitsi is a collection of Open Source projects that offer advanced video conferencing as well as Jitsi:

• Videobridge is a server that is created to route videos between conference participants. This server also works with WebRTC, which is a framework that allows Real-Time Communications in the browser.
• Meet is a JavaScript app that works with the Video bridge server to give top-quality, expandable video conferences. It’s also compatible with Web Real-Time Communication.
• Gate-way to SIP is an app (server-side) that enables SIP users to become part of Meet conferences.
• Conference Focus is a focus item (server-side) that is utilized in Meet conferences. It handles sessions amongst participants & the video bridge.
• Jibri is a recording/ streaming tool used in Meet conferences.

Storage. Any available recordings are stored on the company’s servers waiting to be uploaded to a location that you pick (Dropbox). If no action takes place within 24 hours, the recordings are permanently deleted.

Security. Someone can activate end-to-end encryption when using Meet on a Web browser that allows streams that are insertable. To activate the end-to-end encryption, find the menu, open it and click on the tab that reads “end-to-end encryption” and click on it. All people who attend the conference should fill in a similar phrase or password that you use.

Ways through which Jitsi meetings operate:

Peer-to-peer (P2P). Users can use the Peer-to-peer mode to conduct one on one meetings. With the P2P mode,  communication is secured through DTLS-SRTP encryption.

Jitsi Video bridge. This is used when the meetings involve multiple participants. In this scenario, encryption of communications (both video and audio) still uses DTLS-SRTP. But, the outer layer of the encryption is eliminated allowing the Jitsi packets to cross over the Video bridge. The packets only stay in memory when being routed to other people in the meeting. They are not stored persistently. In the event where even the packets are e2ee, the outer encryption layer will not be removed.

Akamai

Content producers can use Akamai Adaptive Media Player for simplified player settings & to ensure that their audience has access to top-quality online media playback. This Adaptive Media Player (AMP) does not only provide optimized bitrate playback algorithms but also gives users extra online media services.

Monetization. Producers can monetize their activities through ads with Freewheel/ Auditude, mid-rolls, VAST, companions, pre-rolls, or overlays.

Latency. Akamai only allows a 10-second e2e latency. This is enough to give online audiences a real TV experience while streaming. Akamai uses liveOrigin™ to manage low-latency video fragments while streaming HTTP-based media.

Security. To ensure that content is securely transported, e2e, Akamai allows users to get content via a Transport Layer Security (TLS). Users can also prevent unauthorized link sharing through Token Authentication. 

Other security features:

• Akamai supports platforms that do not use cookies for tracking
• It provides an additional protection layer (Access Revocation) which allows unauthorized video streaming sessions to be revoked
• Uses AES-128 encryption to protect HLS media against unsanctioned viewing

We recommend you use cloud-based services for your application’s back-end. Examples include AWS and Google Cloud. To learn the differences between these platforms, click here.

Related reading: 

Video Streaming App Proof of Concept

Conclusion 

For investors or media companies that have been looking for fresh and profitable ideas, the podcast industry is the way to go. The success of the Clubhouse is proof that it is a viable business. According to statisticians, the Clubhouse is small today, but it will only continue to grow in the future.

Regarding monetization, there are many ways of monetizing a Clubhouse-like podcasting app. Clubhouse started lean, without ads, but can still make profits. This means a prospective investor has more than one way to make money from a Clubhouse-like application. 

To get started with the development of a Clubhouse-like app, The APP Solutions can offer help. We can develop your application from beginning to end. While building your Clubhouse-like product, we also prioritize data security. Thus, we are against the use of Chinese-based software. It’s better to choose from other trustworthy software vendors.

According to data from the National Alliance for Mental Health, 1 in every 5 adults in the US experiences mental illness, while 1 in every 6 youths in the US aged 6 – 17 experiences a mental health disorder every year. More abysmal is that suicide is the leading cause of death for those aged between 10 and 34 in the US. This data alone is proof that there is a need to make mental health applications available to the general public. It would also explain why there is an influx of mental health apps in app stores ranging from those helping relieve symptoms to those that help healthy people remain healthy.

Reasons why developing a mental health app is a great idea

There are several reasons why developers, who are keen on helping those suffering from mental health problems, consider creating a mental health application. Here are three reasons.

It will help bring mental health services to those who cannot get them

Data from the Anxiety and Depression Association of America shows that approximately 18% of adults in the US suffer from anxiety disorders, yet only 36% of these individuals receive treatment. Furthermore, according to data from the National Council Medical Director Institute, 77% of US counties have a severe shortage of psychiatrists. This implies that, even if more patients decided to get help, there would come a point where the current practicing psychiatrists may be unable to help many people. With mental health apps, more people can receive help from the comfort of their homes from different mental health practitioners from all over the world.

High demand

The Coronavirus has caused havoc, not just to the physical health of individuals, but also to their mental health. Many people have lost their jobs, lost family members, and some industries like the healthcare industry have been severely affected. According to a report by The Standard in 2020, 46% of health workers interviewed from a sample size of 1400 said they were suffering from a mental health issue. This is compared to 39% in 2019. This increase implies that more people will be looking for mental health apps in the future.

How To Make A Medical App In 2021: The Ultimate Guide

Room for improvement

Data from the Digital Mental Health Revolution report shows that there are more than 10,000 mental health apps available today, with over 100 startups each year. However, many of these apps are underperforming. Some applications do not cater to many users’ needs and preferences, and some need to be upgraded to meet the current needs and demands. There is room for more to be done, moving from traditional therapy techniques to apps encouraging patients to do more self-care practices.

With the aim of improving the quality of services they offer, we find platforms raising money. For example, Lyra Health raised $175 million at a $2.25 billion valuation to connect workforces to therapists and mental health services. Similarly, Calm raised over $70 million, and Headspace raised over $400 million. Some of these funds are being used to improve the services they offer, and making mental health services more readily available e.g. free in some cases.

Calmerry Online Therapy Platform

Healthcare App Development 

A White Label Telemedicine Platform

BuenoPR – 360° Approach to Health

Types and examples of the best mental health apps

Not all mental health apps are created equal. There are many different types of mental health apps offering different services. Consider the different types and  examples of each;

General mental health apps

These applications help users to maintain their mental health by helping them maintain good habits and break bad habits. They also help them maintain their physical, emotional, psychological, and spiritual health, which all contribute to their mental health. These applications can serve functions such as mood trackers, giving positive quotes, and giving relaxation exercises like guided meditation. Mindfulness and Meditation apps fall under this category. One such application is Moodfit.

Moodfit

Moodfit is a free mental health app designed with tools and insights to ‘shape up’ your mood. It helps you get into mental shape the same way you would get into physical shape. Moodfit can help you feel better whether you are feeling anxious, depressed, stressed or have PTSD.

Here is how it works:

• You fill out a questionnaire that helps you determine the severity of your symptoms. You also get articles and audio files that can help you understand what you are experiencing.
• You can track your moods.
• Eventually, you can understand the effects certain things and activities have on your mood, for example, specific medications, amount of sleep, or exercise.
• Receive actionable insights to help you feel better and alter your mood

Education and assessment apps

Such applications help their users to get information on mental health disorders such as PTSD, bipolar disorder, anxiety and depression, eating disorders, and negative thoughts, among many others. These apps share materials used by mental health practitioners when identifying mental health disorders. One such application is Sanvello.

Sanvello

Sanvello’s mission is simple. ‘To help people build the life skills they need, anytime, anywhere, in any way they choose.’ To do so, they provide their users with clinically validated, evidence-based tools and techniques to help them deal with stress, depression, anxiety, etc. A randomized study of 500 adults who had mild to moderate anxiety found that Sanvello’s tools successfully decreased symptoms. These effects lasted even after the participants stopped using the app.

By using Savvello, you can:

• Find cognitive behavioral therapy tools
• Learn mindfulness skills
• Track your mood and health using their inbuilt tools, and use this information to improve your mental and physical health
• Follow the guided journeys designed to help you feel more in control of your life.
• Use the tools to cope with specific issues, for example, the fear of public speaking.

Mental disorder apps

There are many mental disorders apps. These help you deal with specific mental disorders by providing you with the tools necessary to help you function better. Current mental disorder apps deal with problems such as depression, PTSD, anxiety, and schizophrenia. They use techniques such as cognitive behavioral therapy cbt, Mood monitoring, cognitive training, and rational emotive behavioral therapy.

More development is expected to help treat other disorders. For example, there is still room in the mental health apps market for PTSD, Bipolar Disorder Apps, Eating Disorder Apps, and Obsessive-Compulsive Disorder Apps, and cognitive behavioral therapy cbt apps, among others.

WHY CREATE A CUSTOM MENTAL HEALTH APP IN 2021

MoodMission

One great application that caters to users with PTSD, depression, anxiety, bipolar disorder, and stress is MoodMission. Here are some of its functionalities:

• Go through an available list of options and choose the problem you are experiencing.
• Receive five ‘mission’ suggestions based on the information you provide
• Go through each mission with mindfulness, understanding the activities in that mission together with how it may help
• Accept a mission, and after completing it, rate how distressed you feel.
• Your completed missions are logged, and you are ranked based on completed missions.

Online therapy apps

These apps act like banks when you swipe your card at Starbucks (they are intermediaries). They connect you to licensed mental health professionals near you. There are several ways to meet your therapists, depending on your preferences and what the app offers. Ideally, you can get onto an online call, a video call, or chat online. Some apps give group therapy sessions whereby several patients get on a conference call and have a group therapy session. One great example of an online therapy mental health app is Calmerry.

Calmerry

Calmerry will connect you with therapists that match your needs to get you the help you need in order to achieve your goals and meet your needs. There are many types of therapists available such as:

• Cognitive-behavioral therapy (CBT) 
• Gestalt therapy 
• Acceptance and commitment therapy (ACT)
• Solution-focused brief therapy (SFBT)
• Schema-focused therapy (SFT), etc

Here’s a gist of how using Calmerry will work:

• Get a brief assessment where you answer several questions
• Choose how you wish to get therapy
• Select a subscription option that works for you
• Get matched with the right therapist for you
• Start your therapy sessions.

HEALTHCARE APPS DEVELOPMENT: TYPES, EXAMPLES, AND FEATURES

Must-have Features for Mental Health Mobile Apps

While different mental health apps have different features, there are some features that every mental health app development team should strive to incorporate. These features can be broken down into two main groups: Features for patients and mental health professionals. Here is a breakdown of each.

For the patient

These features make it easy for you to track your progress. Some have mood tracking, guided meditation, breathing exercises, and mindfulness among other important features. Here’s a more comprehensive look at the features;

An entry survey – This survey is used to collect basic information concerning the user. This information includes their age, location, gender, family status, current mental health conditions, etc. This information can help the application match the client with the most relevant therapist. Some apps give an entry assessment test that helps users identify the cognitive issues they are facing, particularly if they have never been diagnosed before.

Matching flow – The entry survey and assessment data is used to match the patient to a  therapist. In the US, counselors practice in the states where they are licensed, so factors like the state may determine which counselors will be matched. The apps typically match users to a new counselor for free if they are not satisfied with the one they get.

Text messaging functionality – This feature is excellent for patients or therapists who prefer to communicate through online chat. It’s also an easy way to reach out, for example, if the therapist is currently in another session.

Video conferencing – This function is excellent for video sessions.

Subscription – This is how many of these apps monetize their applications and pay counselors. Users chose the subscription that fits their needs and can cancel at any time or ask for refunds in line with the terms of service. Some subscriptions unlock extra features, e.g., video conferencing.

Therapy space – Therapists use this space to record their patients’ goals and track their progress in real-time.

Therapy management – Patients can use this space to manage their therapy sessions, e.g., pause accounts for some time or put unfinished sessions on hold.

HOW TO BUILD A MEDITATION APP LIKE HEADSPACE AND CALM

For counselors

Short survey – These verify that the therapist is certified to work with patients. These can include asking for clinical permits, state permits, etc. They also give any necessary information about the counselor.

Text and video chats – This is how counselors access their patients

Caseload management – This allows the therapist to manage their caseloads and even determine how many clients they are willing to work with.

Tech stack for a custom mental health application

The tech stack creates an ecosystem allowing several technologies to run one application. Some technologies to use include;

• Angular for the front-end
• Daily.co for secured video calls
• Ionic for developing a hybrid mobile app
• Node.js for the backend
• S3 Bucket for developing the messaging feature from scratch
• MongoDB for secured database
• Redis for sessions queues
• Pusher to send push notifications without sensitive data
• Kafka for exchanging messages between microservices

Ideally, you want to find developers with experience in one or more technologies listed.

Related reading: 

Video Streaming App Proof of Concept

Developing mental health mobile apps

You would be hard-pressed to find one person to develop the application. You are better off hiring several specialists. The specialists needed include;

Business Analyst (BA)

The BA will bridge the gap between IT and the business by using data analytics to find solutions that will fit both your mental health business and your potential clients.

Project Manager (PM)

The PM is responsible for running the project on a day-to-day basis, including ensuring that it stays within budget, is done on time, and is done within the scope laid out.

System Architect

The system architect will write the technical documentation for the project data after receiving and analyzing data from the PM and the BA.

Developers

Developers offer one or more technical solutions,

Designers

Designers visualize the project by making prototypes, creating flow in the app, finalizing the project design, etc.

Quality Assurance Managers

Quality Assurance Managers test the lines of code to ensure that the parts of the project align with the technical documentation and that they work correctly.

As you can imagine, it may be very time-consuming and expensive to interview every person needed to make the app a reality. For this reason, it may make more sense to outsource to a development team. Here are six steps to hiring an outsourcing app development team to understand how to go about that process.

If you are wondering what it may cost to hire an outsourcing app development team, here are some numbers. These values depend on factors such as the team’s geographical location and the app’s features. A simple app may cost you between $25,000 to $50,000. A complex app with multiple features may cost from $100,000 to $200,000.

Costs aside, government compliance for sensitive patient information is a core issue you need to understand.

HOW MENTAL HEALTH CHATBOTS HANDLE STRESS?

HIPAA, PHIPA, and GDPR compliance

Many people opt to use mental health mobile apps over traditional therapy because they understand it to be more private. Some regulatory guidelines for mobile mental health providers ensure the app’s safety and, consequently, its reputation. Essential components include;

HIPAA compliance. When developing the app, it may be helpful to determine whether the HIPAA Privacy and Security Rules apply. A healthcare app becomes Subject to HIPAA if it includes the user’s Protected Health Information (PHI) that can be traced back to the patient. Otherwise, most mental health apps in the app stores are not subject to HIPAA as they are meant for the patient’s private use.

GDPR privacy standards. GDPR requirements are EU regulations directing how businesses should manage personal data. If your app will serve users in the EU, it is advisable to meet these requirements.

Regulatory guidelines. Mental health practices are regulated on federal and state levels. Therefore, it’s essential that you only engage licensed therapists who are acquainted with the federal and state laws. If you are unsure which regulations your application should meet, this interactive mental health apps tool, designed by the Federal Trade Commission, might help.

Encrypting app data. Ensure that all stored or shared data is encrypted at all stages – Passcodes, usernames, and biometrics. 

These features help keep the user’s data private from prying eyes on their end, which helps them feel more secure.

HOW TO MAKE A PERFECT MOBILE APP IN 6 STEPS

TIPS from The APP Solutions

When developing Calmerry, The APP Solutions faced many issues. Below are some solutions that were useful in solving these issues

Therapist validation

To adhere to federal and state regulations about where therapists can offer their services, you need to develop a way of validating the licenses of the therapists hired. You then need to develop an algorithm that matches therapists and users from the same states only.

Architecture

The app’s architecture needs to handle hundreds of actions done by thousands of users regardless of location. An application with video conferencing capabilities functionality, for example, may require heavier loads on the servers compared to chat-based apps.

Unique session I.D. per call and token per participant

Session IDs are necessary to initiate calls. Participant tokens will be unique to the session IDs and will enable users to join the calls. The session IDs can also help prevent double-booking in the calendar if a calendar function exists.

Encryption

To ensure the safety of confidential and sensitive information, it is advisable to encrypt text messages and videos on both endpoints.

The bottom line

According to data from the KFF, more than 30% of adults reported symptoms of anxiety, PTSD, or depression during this pandemic period. This implies that the time is ripe for mental health app developers to develop health apps and online therapy platforms to help people cope with mindfulness and mental health.

If you are looking for a reliable tech partner for your mental health project, the APP Solutions is a mental health and therapy app development company. We can provide solutions for therapy app development and other similar projects.  Drop us a few lines and we will get in touch with you.

Let’s play a game? The expected time to read this article is 9 min. But you can finish it sooner, right? Check what time it is now and start reading. We Promise the prize at the end will be worth taking the challenge. Go!

So, mobile apps…

Today, the mobile app market is enormous, and the numbers from Statista prove that: on Google Play, you can find apps totaling $2.5 million, Apple App Store – $1.8 million, Windows Store – $669 thousand, and  Amazon App Store – $489 thousand. In total, we have a number of $5,5 billion in mobile apps! For business owners, both exciting and disturbing at the same time!

Thus, it’s getting more and more challenging to create a mobile app that will stand out from other apps, be interesting for users, and kept on the shelves like a  favorite toy. Yes, users are quite spoiled children – so many toys in the stores to play with – no chance for boring toys to survive.

[Source: Mambo]

As a result, offering boring apps to users will lead a business owner, not only to a loss of user interest but, of course, the impossibility to involve new users and their money. In the end, we come to an unexpected mathematical equation:

No users = no reviews, comments from them = no leading positions in searches = no new downloads = no success.

But don’t be so quickly disappointed. There is a way to transform an app and achieve all your business goals in a much short period of time.

Interested? Keep reading so you don’t miss an opportunity that will really work for your app!

What is Mobile App Gamification and Why This is What You Need

According to research conducted by a neurology scientist, Matthias Koepp, adult brains release the hormones dopamine and serotonin while playing games and taking challenges. They feel that internal accomplishment that makes them happy, full of energy, and the motivation to continue and move to another level. This answers the question of why people desire to and actually play more and more. 

In real life, it’s harder to experience these emotions because for this to happen you need to achieve bigger goals. Emotional triggers are what returns us to one source of happiness – games – and we can be happy again and again.

So here we go – to the games or it would be better to say ‘mobile app gamification’.

Mobile app gamification is a marketing concept based on the use of such game techniques as rewards, progress display, leaderboards, competition, and social interaction. As people are more inclined to fulfill tasks when they know that at the end a reward will be waiting for them, mobile app gamification is a guide that leads you directly to the user’s production of dopamine and serotonin hormones.

Mobile App Gamification Benefits

Turning the user experience into playing a game can significantly increase the users’ engagement and encourage them to interact with the app more often. 

The possibility of winning influences the user’s behavior even more than we can imagine. But nothing negative here: this works both for a user and business owner as both of them are reaching their goals. In essence, a user is happy to accomplish a task and is rewarded for that, and a business owner has revenue growth and a delighted client who is likely to bring new clients to the app.

Gigya says that mobile app gamification can boost interaction with an app by one third, the number of comments rises by 13%, shares on social media by 22%, and content discoverability by 68%.

So,  what will you as a business receives from mobile app gamification: 

• A constant social presence without putting in any effort
• A leading positions in searches
• Growth of engagement with your app
• Active users on social media
• More and more positive reviews
• Increase in the number of new users who are your target audience, who are ready to start using your app right now

and one more important thing:

• Happy users whom you helped to make their lives better every day.

[Source: Mambo]

How gamification works

A user should accomplish a particular task in an app, and for this, one is pleased with different rewards. In this way, a user feels like a superhero who is struggling to succeed in something, and in the end, it is an enjoyable experience because everyone wants to win.

Let’s move to the practical issues and find out how to actually gamify an app.

There are different techniques of app gamification you can use, but your success depends on your imagination and how good you know your users. We give you insights, you turn them into the cherry on top of your app gamification strategy, ok?

Rewards

[Source: Forbes]

Remember being given a new toy for getting a good mark at school? That motivated us to study even those subjects we were not interested in as we knew that in the end, we would have that desirable present from our parents. Yes, it was hard to achieve, but the happiness we felt when we had finally got the prize couldn’t be compared to anything. More importantly, we are rewarded in both ways: an excellent mark and a reward for our success.

That works even now: we’re still those kids who are too lazy to do important things even while realizing the scope of their importance for us, but a possible reward is what encourages us at least to try. And when we try, the desire to get more and more increases.

Providing your users with rewards for the frequency of using an app, purchasing goods, accomplishing personal goals, participating in quizzes, competitions, sharing posts with their friends, and inviting them to join the app, will not only help to keep their interest in the app but increase their interest continually. 

What kind of rewards can there be: 

• Сash rewards – money is a never-changing motivation for everyone
• Digital goods that can be exchanged for real goods – this will give customers a chance to choose what goods inspire them more to fulfill tasks
• In-app currency to spend inside the app that will promote more purchases as a result  

In other words – anything that has value for your target audience. But avoid useless prizes – they are just a waste of time and money for a business. Identify exactly what will make users come back to your app again and again, and offer it to them. Yes, simple to say but hard to achieve, but we know that you will find the answer, or you can always ask us.

Progress Display

[Source: TrymyUI]

It’s important to see how far we have moved towards our goal, and what improvements we can see right now. This inspires us not to give up and do more. 

If we’ve succeeded, we want the whole world to know about it, that’s why we post on social media so much and share our results with others. Recognition is a huge need for every human being. And it actually works for business presence and promotion.

Leaderboards

[Source: Dribbble]

Improving ourselves is the right motivation, but often it’s not enough for users to stick to the goal. However, when talking about comparing our achievements with others, that becomes much more interesting and tempting for us to participate in the ‘race’ and prove who is the winner.

People love competitions, and they love to win. They’re striving to have the highest scores, and when they see someone’s above them in a leaderboard, they start to do everything to be in 1st place. That’s human nature.

Competition

[Source: Snake battle]

Your business can help people to fulfill this immutable desire to be the best while really becoming the best. Everyone benefits here – business has higher conversion and user activity, and the user has his/her need to win satisfied and a reward for their efforts.

Social Interaction

[Source: SaaSquatch]

Moreover, people are inclined to challenge their friends and compete with them, so involving new users is guaranteed! 

Successful examples of gamified apps

Starbucks

[Source: Zinrelo]

Starbucks is a coffee giant that offers a loyalty system to its clients.

Used technics:

• Progress display of your purchasing frequency
• Rewards for each order in the form of stars which can be exchanged for material prizes later

Duolingo

Duolingo is an educational app for learning foreign languages.

Used technics:

• Progress display of course completion in the form of a percentage
• A reward for actions – an internal currency called lingots 
• Competition – voting for the best  translation
• Leaderboards with scores based on learning achievements
• Social interaction with friends on Facebook

Fitbit

[Source: Modrsk]

Fitbit is a fitness app for the completion of different kinds of sports activities.

Used technics:

• Progress display while filling in a circle of your physical activity
• Rewards for walking a certain distance every day. Different badges for different distances.
• Social engagement – to find friends or invite them
• The possibility to compete with your friends in sport
• Challenge yourself with original tasks

Todoist

[Source: Todoist]

It is a tracker that allows controlling the completion of both daily and business tasks.

Used technics:

• Rewards for tasks – karma points (a user can also go minus if deadlines are missed)
• Progress is shown in a number of unlocked levels
• Social shares of a user’s karma on social media

SmartyPig

[Source: Philip Schriver]

This is an app to manage user finances and help them to achieve their financial goals, for example, to save money for a new car. 

Used technics:

• Progress bar to see how much money is saved and how much is left.

What to Remember: Risks and Challenges

Despite all the advantages of the gamification of an app mentioned above, you, as a current or future business owner should always remember that it is not a one-way working panacea that guarantees the success of your business. It might work, and, at the same time, it might not work. 

So, it’s vital to consider all possible risks and challenges that can prevent you from reaching set business goals. To be entirely sure you’re investing your money and time resources in the right direction, we encourage you to contact the App Solutions and leverage our expertise. 

And here are some tips that are taken from our practice to show you how to get the best of app gamification and build a successful mobile app gamification strategy:

• Set clear goals and monitor their status

If you decide to implement a solution, then you’re doing it for some purpose. Know your purpose from the very beginning, keep it in mind, and follow a plan or your actions won’t bring the desired result. Shape your app gamification strategy while focusing on both your needs and the needs of your users. Remember that you both need benefits. 

• Identify your target audience, learn it and always analyze

Even a well-developed gamification app strategy won’t work if it’s not developed based exclusively on your target users’ needs and interests. In this case, you will simply hit the wrong target. 

Data is what helps you to find out who is interested in you, how he or she behaves, why something is happening in a certain way, and how to make it play for you. 

• Find what has value for your users and integrate it into your app

Even if we’re sure that something will definitely work because we like it, it doesn’t mean our users will share our opinion – they have their own likes and dislikes. 

So here it’s important to discover what your users want the most, what will become their biggest motivation to complete the task, what will make them use your application, and not others. 

• Keep it simple 

Probably, it’s the biggest mistake to think that you have to rebuild your app entirely to make it gamified. That’s not always the case. If it works well, adding some unique gamification features to it will be enough. 

Don’t confuse both yourself and your users with complex systems, techniques, and approaches. The rules of the game you’re offering to other people should be easy to get and follow. You don’t want to make your users irritated, right?

• Keep it entertaining

The success of your app gamification is directly dependent on the user’s experience while using an app. The more playful and enjoyable it is, the more delighted your users are.

It often happens that, in the beginning, an app attracts a lot of users, but then, the app gets more and more boring and predictable and has nothing new to experience. So, users have no motivation to explore it further. 

To avoid this, build your app gamification strategy in a way users can be entertained throughout the whole game, not only at levels 1 and 2. They shouldn’t know what is coming next, but be curious to discover it by themselves.

• Encourage users to share

All people want likes and shares. So does a business. Make your users proud of the achievements they’ve accomplished with your app, and they will say ‘thank you’ with shares on their social profiles. Facebook, Twitter, Instagram – communicate with your audience everywhere.

• Hear your users

Pay attention to what your users are saying; what they’re complaining about and what they’re complimenting about your app. This will give you a clear picture of what to improve, change, or keep.

The Game is Not Over Yet

Remember that game we started in the beginning? Congratulations! It’s almost at an end.

The point here is to see how gamification works as an example, influences your behavior, and how it can make a usually long and boring to read article fun, entertaining, and simple to finish. 

You’ve been challenged, you’ve won, and now, you get a price – knowledge of how to gamify any activity and achieve much better results than could be reached with a traditional approach. 

Now, imagine what scale of feedback you can get with mobile app gamification. Inspired? We’re here to implement your most creative ideas. Just contact us here.

Our life is quite unpredictable. Imagine that you came home after overtime at work. The last thing you want is to walk your dog, who is staring at you with its sad eyes. A lack of time is a common concern for many dog owners. Nevertheless, the dog still has its own needs, and it should be walked regularly. Now we have a mobile app even for dog walking. 

In the past, dog owners had to find a walker in advance, and most dog walking businesses operated offline. Now, pet walking apps work great for both planned and unplanned on-demand dog walking services. 

In this article, we have gathered the main steps on how to develop an app like Uber for finding dog walkers. 

What is an on-demand platform for dog walkers? 

All dog walking or sitting mobile application operates as an on-demand two-sided marketplace:

• A pet owner sends a request for walking a dog. 
• A dog walker receives the request in real-time and confirms the booking.
• During the walk, the dog owner can track the route with GPS, receive photo updates, and even poo and pee reports. 
• When the walk comes to its end, the dog walker brings the pet home and receives payment via the app. 
• The dog owner can rate the walker and even write a review about the service. 

And now, let’s look at the best dog walking apps. 

FUNCTIONAL VS NON-FUNCTIONAL REQUIREMENTS: MAIN DIFFERENCES & EXAMPLES

Popular dog-walking platforms overview

As we said, apps that bring together dog walkers and owners have significant market opportunities, and to create the app “Uber for dog walking”, you should keep up with the industry leaders. 

Rover for dog walking 

The company was established in 2011 in Seattle, Washington. Currently, Rover’s annual revenue reaches $11 million. The company counts over 65,000 dog walkers and pet sitters across the U.S. The leading River service is pet sitting. Rover is also known as Yelp for dogs because to book a walk, a dog owner searches through dog walker profiles and then selects one to set up a walk with. App users can receive the following services: 

• Dog Walking from $30. You can track start and stop walk times, a map with a total distance, pee, poo, food, and water breaks via the app. 
• Doggy daycare from $20/ day. You can book daytime pet care in your sitter’s home.
• Drop-in visits from $20. Instead of a full-time pet sitter, you can book someone to drop by a few times a day to feed and check on your pet.
• House sitting from $20. In case you are leaving town, Rover gives you the option to book a sitter to take care of your dog and your home. 
• Dog boarding from $20. You can connect with a sitter who’ll welcome your dog into their home when you’re out of town. 

All Rover sitters and walkers have to pass a background check and a safety quiz. Pet owners can book an in-person meeting with a walker to discuss expectations. 

GEOLOCATION BEACONS EXPLAINED

Wag! for Pet Services

Wag Lab, also known as Wag!, was founded in 2014 in Los Angeles. Currently, the estimated Wag! Annual revenue reaches $2,5 million. Wag works like Uber for dogs. When a dog owner requests a walk, all nearby dog walkers receive notifications. If the dog owner is satisfied with the service he or she can tip the walker right through the app. Whoever responds the quickest gets the walk. Wag! has even more services to offer:

• Wag! Walk from $20. You can give your dog a walk with a selectable walk length.
• Sitting from $39. You can book a sitter who will care for the dog at your home.
• Boarding from $39. If you leave your hometown for a vacation or  business trip, a boarding host will care for your dog in their home 
• Daycare from $39. You can leave your pet at a daycare host’s home for a one-time, or repeated visit.

To build trust among pet owners, Wag! does comprehensive background screenings to ensure that dog walkers and sitters are reliable. Besides, the platform has 24/7 customer support. 

WHAT IS MVP IN SOFTWARE DEVELOPMENT?

All these on-demand dogs walking Uber app examples are very inspiring. But what does it take to develop an app like Wag for dog walking? Let’s check it out.

How to make an app for dog walkers: a step-by-step guide

To launch your dog walking business, you will need to go through the following steps. 

1. Find your niche 

By choosing a narrow niche for your dog service app you guarantee your business success. Below we have gathered the most prominent niches for an Uber for dogs two-sided mobile app: 

• Pet Sitting. Professional pet sitters will play with pets, feed them, or provide more personalized care, like giving medication. 
• Dog Training. You can create an on-demand service for dog training with professional handlers. There is much space for dog trainer services because in the US alone there 74 million dogs. 
• Pet Grooming. On-demand grooming is another prospective pet service niche. U.S. Bureau of Labor Statistics says the demand for pet groomers is expected to rise by 12% during this year.

2. Research competitors 

At this stage, your main goal is to get a comprehensive competitive landscape view. To achieve this, you can do the following:

• Search for companies with similar service ideas or overarching business ideas
• Check their social media profiles, websites, and online communities. 
• Use ReferenceUSA, Hoovers, Ahrefs, Alexa, and Keyword Spy to receive deeper insights. 

Then, categorize competitors into three levels: 

• Primary Competition, i.e., businesses that are targeting the same audience and provide similar services
• Secondary Competition. Companies that offer their services to a different target audience fall into this category. 
• Tertiary Competition. These might be companies that provide related services or products, like pet supplies or food. Such companies could become your partners when you decide to expand your services. 

HOW TO CREATE A LOCATION-BASED APP FOR ANDROID AND IOS

3. Choose a Monetization Strategy

Most dog walker marketplaces apply the business model of the service aggregator platform. Thus, you can choose between:

• Fees form transactions. You can charge a percentage from each payment made via your dog walking marketplace. 
• Paid promotions. Dog walkers can increase their visibility in the search with advertising.
• Paid ads. You can charge pet-related businesses for running their ads on the app. 
• Surge Charges. In some areas, the demand for dog walking is higher than the supply. Thus, you can put in surge pricing to stimulate dog walkers offering their services at a higher price. 

4. Create a Feature list 

 To connect dog walkers and pet owners, your app should perform like a two-sided marketplace where there are a buyer and seller. For such projects we suggest the following feature list:

For Pet Owners

• Personal profile where the pet owner can put the dog’s name, age, personal preferences, things that the dog does not like, and so on. 
• Search where pet owners can see available dog walkers and sitters in their area. Such a feature requires Google Maps API integration, as we did for the QuePro app. To find out more, read the full case study. 
• Filters for search results to find the nearest available dog walker. 
• Walk booking and scheduling. The pet owner can book the next walk of the dog or schedule the days and time for a walk. 
• Walk report. In this section, the pet owner can track the walk route distance, start and end time.

WHAT TECH STACK TO CHOOSE FOR YOUR PROJECT

For Dog Walkers

• Profile. A walker can tell about the previous dog walking experience, put a photo and links to social media profiles.
• Requests. In this section, dog walkers will receive all new requests for a dog walking job. 
• Time availability. Dog walkers can add the time when they are available for dog walking in the calendar.

Other Important Features 

• Log in via social network accounts such as Facebook, Google, or LinkedIn for new users. 
• Online chat, where the pet owner can discuss all details with the dog walker.
• Build-in Payment gateway allows pet owners to pay walkers with their credit cards. 
• Push-notifications for new requests and walk progress. 

5. Develop the App Design

Well-Thought app design is key to smooth user experience and app success. To create a convenient and user-friendly design you will need to complete the following: 

• Sketching. You need to prioritize the app features and visualize them through user experience. You can achieve this with a few rough sketches of the primary app screens. 
• Wireframing. Now you can start creating the app wireframes. The wireframe should include app elements such as text, buttons, boxes, lists, and event descriptions. 

[The App Solutions app wireframe example]

• Prototyping. Now the design team will use your sketches and wireframes to create the app design prototype. With an app prototype, you will make your app more real for your potential investors. Besides, you can receive feedback from testers on app usability and user-friendliness. 

[The App Solutions app prototype example]

6. Develop an on-demand dog walking app MVP

By launching your app as MVP, you can manage the user’s expectations. Below we share the Rover app clone MVP estimate in hours based on our assumptions to kick off the project. 

HOW MUCH DOES IT COST TO DEVELOP AN APP: DETAILED FEATURE BREAKDOWN

FeatureScreen	Design	Android/ iOS
User registration (email, Facebook)	12 hours	18 hours
Profile of user (photo, bio, dogs and their photos)	12 hours	24 hours
Add/edit information of dogs to the user’s profile	8 hours	20 hours
Filter routes by type, location	8 hours	16 hours
Search on map	8 hours	26 hours
Booking section	6 hours	4 hours
Total	54 hours	108 hours

The development and design stage of app MVP takes from 2 to 4 months and costs from $25K. Once your app MVP is ready you can make the project live and upload it to app marketplaces. 

7. Gather user feedback

Gathering feedback from app users has several advantages. Firstly, you can find out:

• Whether your app meets user expectations or not
• How well the user experience is shaped, and so on. 

Besides, app users can point out app disadvantages that you would never notice. Secondly, you can ask them what features they want you to add to the app to make it more convenient. By implementing those features, you will give app users the sense of being heard. Besides, you will also encourage them to participate more and send more feedback in the future. 

HOW TO MAKE AN APP: LIFE CYCLE OF MOBILE DEVELOPMENT

In a nutshell

In recent years dog walking and sitting apps have become very popular among pet owners. Such applications give pet owners more freedom and the ability to take care of their pets even in the unforeseeable conditions of modern life. To create your dog walking app you need to go through the stages described in this article. 

Chatbot integration with a website or mobile app is a win-win strategy for both your business and your clients. Why? Firstly, thanks to various use cases, chatbots can increase revenue by up to 25%, lead generation to 9.5%, and improve engagement with clients by 35%. Secondly, your customers receive a better UX experience of finding and ordering goods or services, paying for them seamlessly, and more. Are you ready to integrate a Chabot into your business strategy? Great! But the question is, “Whether to build a custom-made Chabot or use a Chabot building platform”?

Let’s find out. 

Below, we have gathered the main chatbot types, their usages, and a comparison of custom vs. platform-build chatbots. After reading this article, you will know exactly what kind of chatbot you need. Depending on its type, you will know whether you need a custom chatbot or platform-build solution. 

Main types of chatbots

A chatbot is a computer app that mimics human behavior during a conversation with a real person. But, the degree of chatbot’s humanity depends on the complexity of the technologies behind the app. Now, let’s look at the Chabot types in more detail:

Type 1: Scripted/Quick Reply Bots

Scripted is the simplest type of chatbot. Such chatbots are powered with decision three hierarchy and communicate with people using predefined scripts via a set of questions or buttons. Such scripted chatbots are the slowest medium of getting the user to their desired value. 

[Burberry scripted chatbot] 

Type 2: AI Chatbots

AI chatbots are more complex than scripted chatbots and include two subdivisions: 

• Chatbots with Natural Language Processing 
• Content Enable Chatbots with Machine Learning 

Now, we will take a closer look at these types:

Natural Language Processing (NLP) chatbots can understand, analyze, and prioritize questions according to their complexity. NLP chatbots are programmed to recognize particular keywords. Then, such chatbots respond appropriately with a non-pre-scripted response. More advanced NLP can even understand your message intensity, i.e., whether you are asking a question or make a statement.

[Booking.com NLP chatbot]

Content Enable Chatbots. Powered by Machine Learning (ML) and Artificial Intelligence, Content Enable chatbots are the more advanced type. ML chatbots learn from conversations that happened in the past with a specific user and grow over time. Examples of such chatbots are Siri, Alexa, and AI versus, created and taught by our team, ISD GmbH, and Hoskhod agency. To learn more about this project, read the full case study.  

Now, let’s look at how you can use a chatbot for your business. 

Chatbot use cases

You can use live chats and chatbots for multiple business areas, including customer support, streamlined payment, shopping assistants, and even healthcare assistants. Many marketers agree that such chat options are here to stay as automation continues to make advances. Now, chatbots can cover the following usages: 

FAQ assistants

Chatbots, in most cases scripted, can perform as live FAQ and process over 80% of support queries. It means that the customer can ask them questions and receive an answer. But, to create such a chatbot, you need something more than integrating FAQ section materials into a chat interface. FAQ chatbots should also be able to ask follow-up questions and connect the user with a real person if needed. 

Such chatbots are used for both websites and mobile applications, and one example is the “Kate” chatbot, a mobile app digital assistant, developed by Geico insurance company. App users can ask Kate questions, via both voice and text, and receive answers about billing and basic policy.

Navigational botsshopping assistants

Navigations bots help website or mobile app users search for specific information such as blog articles, a particular website page or product, via a conversational interface. You can use the navigation chatbot to direct customers to the most relevant product. Firstly, the user tells a chatbot what product one is searching for. Next, the navigation bot shows the user all the products that match the user’s request and sends links to those items. To achieve this, the chatbot back-end is integrated with catalog and service-side API. Still, such chatbots are something more than navigation menus. Shopping assistants can even adopt changing messages and themes, send holiday greetings or information about an actual sale. 

Shopping assistants are widely used in the clothes and fashion industry. An example is the H&M bot on the KiK platform, which understands user style preferences, gives personalized style recommendations, and even builds an outfit. 

Healthcare assistants

Chatbots help clinics and hospitals save a considerable amount of money. In the healthcare industry, chatbots can perform as online receptionists, nurses, interns, or even assist with a patient progress report, assess drug interactions, and check post-op recovery. 

Besides, chatbots can make medical diagnoses faster, as MedWhat chatbot does. Thanks to the ML algorithm, MedWhat chatbot provides users with increasingly accurate answers on questions concerning medical diagnoses. Besides this, thanks to machine learning, the bot learns from each interaction with a patient. MedWhat bot expands existing medical data using a vast volume of medical research and peer-reviewed scientific papers. 

Recommendations and Booking agents

In industries like hospitality and traveling, chatbots can be used as personal traveler assistants or virtual concierges. In this way, customers receive 24/7 online support, which impacts customer loyalty and satisfaction. You can integrate such chatbots into a website, and even a Facebook Business page, like the SnapTravel agency has.

Using the SnapTravel Messenger bot, travelers can find the best accommodation that meets their preferences and budget. This bot is powered by Artificial Intelligence and works as an aggregator. You need to enter the dates and city you want to go to. Then, Snap bot analyzes offer from Expedia, Priceline, and other travel websites, to come up with the best deals. After selecting the best option, the user can book accommodation right through Messenger. 

Lead generation and retention bots

Chatbots might also be a part of a content marketing strategy and generate more leads from social media or websites. Besides this, a retention chatbot could activate your old leads by sending them sales alerts or relevant updates as TechCrunch Messenger chatbot does. It informs subscribers about stories on relevant topics. To achieve this, users need to subscribe to sections, authors, and topics on the TechCrunch website, and then the bot sends news articles, and other updates, right to the user via Messenger. 

Transactional bots

This type of chatbot is much different from other use cases on this list. The main goal of transactional chatbots is to simplify user experience and provide a convenient and quick channel for completing a particular action. Transactional chatbots allow users to place new orders and repeat purchases and even conduct an online payment. 

An example is Pizza Hut’s bot that helps users place orders for pizza and other meals via Twitter or Facebook. The bot also informs customers about recent promotions and answers FAQ questions.

Have you selected a perfect type and usage case for your chatbot? Great!

Now, let’s find out whether to build a bot with a builder or make a custom bot from scratch. 

READ ALSO: NLP Business Applications

Platform-based chatbots

Chatbot platforms allow you to make your own chatbot by yourself. While some chatbot-building platforms have a simple drag-and-drop menu, others require a degree of technical knowledge. Now, we’ll take a look at the most popular platforms for building chatbots, their capabilities, and price policies. 

	Flow XO	Chatfuel	Azure Bot Service
Complexity	Simple	Medium	High
Where to use	·       Facebook Messenger ·       Slack ·       Twilio SMS ·       Telegram ·       Website	·       Facebook Messenger ·       WordPress ·       Shopify websites	·       Website ·       Mobile app ·       Cortana ·       Skype ·       Slack ·       Facebook Messenger
Main features	·       Simple questions answering ·       User answers validation ·       Switch between a chatbot and live chat ·       Accept payments ·       Build-in templates	·       Online chat ·       Payments ·       Call button ·       Switch between a chatbot and human agent ·       Support integrations via JSON API	·       Natural Language Understanding ·       Open-source SDK ·       Native integration of Azure Cognitive Services. ·       Any type of bots: from a Q&A bot to your own branded virtual assistant
Costs	·       Standard Plan – $19 per month Add-ons: ·       5 bots or active flows – $10 per month ·   25,000 interactions- $10 per month	·       Free – up to 1000 Subscribers ·       Pro – from $15 per month ·       Premium – from $199 per month	·       Free – 10,000 messages/month ·       Premium channels- $0.50 per 1,000 messages

So, what are the advantages of bot-building platforms?

• Chatbot builders are handy for developing simple or even sophisticated chatbots for any business
• You can integrate your chatbot to most popular messaging platforms, such as Messenger, Telegram, Skype
• Some platforms allow integrating a chatbot right to your website or mobile app
• You can connect your chatbot with third-party services such as payment gateway 
• Chatbot-building platforms are cheap or even free 
• By using a platform, you can set your business logic of chatbot behavior

At the same time, chatbot building platforms have some disadvantages:

• You can only create a chatbot with simple logic. For more complex chatbots, you will need  help from developers 
• Chatbot-builders’ tools may not always help you achieve your desired results.
• If you are not a tech person, you will need more time and effort to make a chatbot. However, there is no guarantee that the chatbot will perform well.

Building a chatbot from scratch

If you want to create a sophisticated chatbot with your own API integrations, such as a shopping assistant, booking agent, or healthcare assistant, consider developing a chatbot from scratch. You can create a solution with custom logic and a set of features that ideally meet your business needs. Such chatbots work as a server-side application that implements chat features via its own API. To create your own custom chatbot, you need to hire a development team for chatbot development services. If your chatbot requires the integration of Natural Language Processing, the development team will use Opennlp or Nltk NLP tools. In this case, consider that NLP will perform as a separate service.  

Below, you can find our feature list of a custom chatbot MVP for a travel agency with estimation in hours. 

FeatureScreen	Functions required	BackEnd
Architecture		12
Customization for agents	Logo Agent Name	60
Connection to Data Server API		16
Switching between a chatbot and human agent	Switch between Human Agent and Chatbot Return, Forward functions for user	32
Gathering of data from the user (Search for hotel, tour, full package flow)	Dates Number of adults Number of Infants Meal Hotel stars	32
Transferring Data to API and receiving results		16
Tour Proposals	Show search results	8
Show more variants		16
Admin Panel
Admin Login		8
Chatbot Management	Define questions and answers	40
Total		From 240 hours

In our experience as a chatbot development company, developing a custom chatbot starts from $4000 and takes from 240 hours of coding. 

By developing a custom chatbot you will receive the following benefits: 

• You can integrate complex and unique functionalities to your chatbot
• Your development team will provide your bot with excellent user experience, as well as helping you to find the right technical solution for your business needs. 
• The development team will conduct tests of your chatbot to ensure that it is bug-free.
• After the bot release, the development team will provide you with technical maintenance and further bot improvement. 

However, there are also some drawbacks: 

• Developing a custom chatbot takes more time and costs more than developing a bot via the building platform. 
• To develop such a solution, developers will need to create service infrastructure and hosting, which also takes time. 

Now, let us compare developing a chatbot with a platform and a custom solution. 

Platform vs. Custom: Chatbot development comparison

	Platform	Custom
Initial cost	While some bot development platforms are free of charge, others will charge a fee: ·   Monthly ·   Per user ·   Per transaction basis	The cost will depend on: ·   Experience of the developers ·   The number of developing hours ·   Bot usage case ·   The number of platforms required ·   The number of chatbot users ·   The number of third-party integration such as an online store or a CRM ·   API integration
Planning	You can simultaneously plan and build a chatbot using a flowchart-like or drag and drop interface	Here, you need to consider the integration of a chatbot with:   ·   NLP ·   Analytics ·   Payments ·   Subscriptions ·   Integrations ·   Platforms All elements will work together, which increases both chatbot complexity.
Build Time	By using ready-made templates, you can integrate a simple chatbot in messenger in less than 30 seconds.	The chatbot building time depends on ·   Number of developers ·   Number and complexity of features ·   Number of integrations
Testing	You need to test the Chabot on your own. You can receive support on Chabot testing via a test/development chat within the platform.	The developing team will conduct the bench of the test to ensure that your bot operates correctly.
Maintenance	You can make changes and integrate new scenarios on your own without coding.	Only developers can make changes in the bot code.

What to choose: platform-build or a custom chatbot?

There is no single answer since the solution will depend on the complexity of your chatbot, its’ usage case, number of integrations, and so on. 

Chatbot builders suite for developing:

• FAQ bots
• Transactional chatbots 
• Navigation bots
• Lead generation bots

Besides, you can use chatbot builders if you are in a hurry, have a tight budget, and need simple functionality. However, even platform build-solutions may be complex and apply MLP, AI, and machine learning. For such cases, you need to hire a development team to set up and teach the sophisticated chatbots for you. 

Custom chatbots are great in the following use cases:

• Shopping assistants with AI and machine learning 
• Healthcare assistants 
• Medical diagnoses bot
• Hospitality chatbots and personal concierge
• A bot with catalog and service-side API integrations

In a nutshell

Chatbots vary in the level of their complexity, usage cases, and industries. Still, with such great diversity, you can find the option that will ideally meet your business needs. To achieve this, you need to answer the following questions: 

• What is the purpose of the chatbot?
• Where will you use it: in a messenger, website, or app?
• How complex should it be?
• How many features should it have?
• Do you need to integrate it with third-party services, such as analytics or payment gateway?  

After answering these questions you will have a clear idea of whether to build your own custom chatbot or use a bot builder. 

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Today, the word “bot” is no longer associated with science fiction. Now, chatbots allow you to book a ticket or accommodation, order food, or even pay for your order online. 

Chatbots are currently used, not only in e-commerce websites, but also in social networks, like Twitter, Facebook, and, in particular, the Facebook Messenger platform. Why? The reason is simple – instead of calling customer support, over 65% of online shoppers will message a business. Also, 53% of shoppers are more likely to buy from a store they can message. And, Facebook reports on a host of data only proves that trend. Reports show that every month Facebook business pages are exchanging over 2 billion messages with customers.  

But why is it important? Let’s see. 

If you do not want to get left behind but rather be ahead of your competitors in online retail, you should be able to communicate directly with your clients. And, to make such communication even more useful, consider adopting chatbots for your e-commerce business. 

In this article, we will look at the most successful e-commerce chatbot use cases and go through a step-by-step guide on how you can develop a perfect chatbot for your online store. 

But first, let’s see what the benefits are of using chatbots in retail stores. 

Key benefits of using e-commerce chatbots

Around 80% of online businesses are planning to use chatbots by 2020. 

The reasons why this digital trend is up and running lie in the following benefits of chatbots for e-commerce: 

Improved customer engagement

As we have said, modern customers prefer sending messages to businesses rather than making phone calls. But, to keep customers engaged with your business, you need to respond in time. In fact, according to Harvard Business Review research, a five-minute delay in answering a customer query decreases the customer engagement rate, and a ten-minute delay reduces this metric by 400%. Chatbots for retail businesses respond to potential buyers’ queries immediately, thus increasing the customer engagement rate by 54%. 

Drive sales 

A chatbot could be integrated into your website or shopping app. By providing customers with immediate responses, shopping chatbots significantly drive sales to your online store. The recent Ubisend report shows that 40% of consumers want offers and deals from chatbots. Also, online shoppers are willing to spend more than $400 on an online store powered by a chatbot. 

Reduce customer acquisition cost

As you may know, Customer Acquisition Cost (CAC) is a metric that shows how much money you spend to attract one customer, and the lower the CAC, the better. Chatbots reduce CAC since they offer engaging and instant conversation on your online store; thus, customers stay longer on your website. Moreover, chatbots for retail and e-commerce sites provide customers with personalized product recommendations and, as a result, increase chances to convert website visitors into customers.  

Decrease customer support costs

If a potential customer is interested in your products, one may ask for a more detailed product description. Statistics show that answering simple questions is relevant to 55% of online shoppers, and 64% of online shoppers prefer 24/7 online support that can not be provided by a real person. Here chatbots are handy. By integrating a simple FAQ chatbot, you can decrease customer support costs by 30%. But to answer complex queries, a chatbot should switch the customer to a human agent. 

Build Loyalty

Customer loyalty, also known as customer retention rate, is another metric that chatbots can improve. To build loyalty among existing customers, consider integrating instant chatbot, and always be in touch with your target audience, provide them with customer service and relevant product recommendations. 

Streamline sales funnel

By using an e-commerce chatbot, customers can identify the product they want, find it in a matter of clicks, and buy more seamlessly. Thus, chatbots have become a new sales channel for online retailers. 

Top 5 most successful e-commerce chatbot use cases

Let’s see the most successful examples that show the use of chatbots in retail by famous brands. 

Order automation 

How many steps do you need to take for ordering, for example, a pizza via a website? The answer is at least five – select a pizza you want, add it to the shopping cart, go to the shopping cart to complete your order, fill in the delivery address, and pay for the order. Chatbots can shorten this process to just two steps – you need to give a chatbot your order details, share your location via GPS, or put it manually. Sounds incredible? That is actually how a Pizza Hut Facebook Messenger chatbot works. Moreover, the company launched a Twitter chatbot that decreases the ordering process to just one action- sending a pizza emoji in direct messages. After the launch of Facebook and Twitter chatbots, Pizza Hut increased digital revenue by 75-80% and continue to receive 50% of its orders from these digital channels. 

Personal product recommendations 

When customers are visiting your online store to buy a particular pair of jeans, they spend some time in the product catalog to find the exact pair they are searching for. Such a buying process may become an irritating experience, especially if your online store has numerous product categories. To avoid this, online retailers integrate chatbots to help buyers in selecting products that perfectly meet their needs, just as Aerie, the clothing and lingerie spin-off of American Eagle Outfitters did. The company integrated a chatbot for Kik messenger, developed on the Pandorabot platform. To learn more about style preferences, the bot shows online shop visitors two images of clothing or lingerie. Then, the bot customizes the item recommendations and offer more relevant products. As a result of such integration, AEO chatbot acquired twice as many users across all social channels. 

Conversational marketing tool

Do you like Nike sneakers? What if you can put any image on sneakers to customize them in the way you want? That is what Nike did in their conversational marketing strategy to promote Nike AirMax Day. The company developed a  Nike StyleBot for Facebook Messenger to enable fans to style their shoe design, using previously uploaded versions for inspiration, and sharing the results with friends via Facebook Messenger. Such a conversational marketing campaign brought the company 12.5 times higher click-through rate (CTR) compared with their other campaigns, and four times higher conversion rate that their average marketing campaign.

Chatbots for shopping assistance 

To receive relevant product recommendations at an online store is a great experience. But what if a chatbot can suggest the whole outfit to you? That idea inspired H&M to create The Official H&M Chatbot. The main goals of the H&M Chatbot are to streamline mobile shopper’s customer experience, help them to search through outfit possibilities, and guide them directly to an online store to complete the purchase. To receive a personalized look, the customer provides the chatbot with gender, style, and the total price for all items. Then, if the shopper likes the outfit, one can save it to archive, buy all items at the H&M online store, or share the look via social networks. By using a chatbot, the company facilitates impulse buys and decreases the shopping cart abandon rate due to streamlined sales funnel. 

Personalized 24/7 customer support 

While a human agent can not be around and answer all the customer’s queries, chatbot nails it. An example is the Twitter DM chatbot created by the Etsy marketplace. The company’s chatbot has clear call-to-action buttons that provide shoppers with more personalized customer service, fixes problems immediately, and helps in finding more information day or night. Despite any issues that may have arisen, in this way, Etsy managed to build a strong relationship with clients which encouraged them to return in the future. 

How to create a chatbot for an e-commerce store 

If you want to build one for your online store, follow the steps of the chatbot development guide, described below. 

Step 1. Define the bot’s goal 

What do you need a chatbot for? Should it answer user questions, offer discounts, or promote new products? To decide on your chatbot functionality, you will need to communicate with your customer support, sales, and social media teams. To give you an idea of how you can use a chatbot, we have selected the most widely spread use cases of chatbot in online retail:  

• Send notifications and reminders
• Work as digital assistants
• Handle online transactions
• Collect customer data and user feedback
• Advertise and broadcast
• Conduct market research
• Entertain and educate users
• Automated customer support
• Streamlined business processes
• Give personalized recommendations
• Provide access to information
• Upsell products and services, etc.

To build a chatbot for a retail business, we advise you to be selective and wrap your ideas with certain limits, i.e., the number of functions. In the beginning, empower your chatbot with one or two simple tasks and analyze how the bot works for your business. You can always add more sophisticated functions later. 

Step 2. Select the chatbot type

When you are done with the functions of your chatbot, you need to choose its type. Nowadays, there are two main types of chatbots: 

• Pre-scripted or rule-based chatbots are the simplest type since they work on the basis of predefined answers. Use such a chatbot if you need a solution for solving simple tasks, like customer service bots, to answer users’ questions. 

• AI-based chatbots are more advanced than the previous one. By using AI (artificial intelligence) and NLP (natural language processing), such bots can understand user input and answer with relevant non-pre defined answers. You can even empower your bot with an NL (machine learning) algorithm, so the bot can learn from each interaction with a user and remember one’s preferences. Still, AI chatbots require pre-launch training; thus, you need to hire chatbot developers. 

Next, consider where you will use your chatbot since it will impact the technical solution. You can develop a chatbot for the following channels: 

• E-commerce website 
• iMessage or SMS 
• Social networks such as Twitter, or Slack 
• Messaging apps, including Facebook Messenger, WhatsApp, and Telegram

If you need to use the same chatbot in both your online store and Facebook Messenger, you can create an omnichannel chatbot that will work across several channels. 

When you know your chatbot use case, its type, and channels, you are ready to select the platform to build your chatbot. 

Step 3. Choose your platform

Below we have gathered the most popular platform for building an e-commerce chatbot. 

Unless you want to create a custom e-commerce chatbot, you can select the most suitable platform that varies on the bot’s complexity. 

Best platforms for simple chatbots 

	Chatfuel	Botsify	Flow Xo
Target platforms	Telegram  Facebook Messenger	Facebook Messenger  WhatsApp  Instagram	WhatsApp Web Facebook Messenger Slack Telegram  Twilio SMS
Price	Free with basic features;  Chatfuel Pro ($30/month) with advanced features is also available	Free  Basic ($10/month),  Premium ($30/month) Business ($50/month)	Free Standard ($19/month)
Description	Chatfuel chatbots work on pre-defined coded rules and serve clients accordingly. The Chatfuel builder platform has drag-and-drop feature which makes  it the ideal platform for beginners who want a chatbot to perform basic roles.	Botsify provides users with its custom templates for travel, restaurant booking, etc. along with drag-and-drop functionalities.   Anyone can create bots effortlessly without writing a single line of code.  Even the free version comes with 20 templates.	Flow Xo offers templates and tools to create and test the functionalities of your bot with a built-in test console.  The bot can connect with your customers over voice and chat.

Best platforms for AI chatbots for e-commerce

	IBM Watson	Microsoft Bot Framework	Wit.ai
Target platform	Facebook Messenger WhatsApp  Instagram	Website  App Cortana Microsoft Teams Skype  Slack Facebook Messenger	Website  App Cortana  Microsoft Teams  Skype Slack  Facebook Messenger
Price	Lite (USD 0)  Standard ($0.0025 (USD) per API call)  Premium (price not disclosed)	Standard channels (Free) Premium ($0.50 per 1,000 messages)	Standard channels (Free) Premium ($0.50 per 1,000 messages)
Description	IBM Watson is the platform for AI chatbot that can handle complex conversations.  It can process around four terabytes of data and is hosted on a cluster of ninety IBM Power 750 servers, each of which uses a 3.5 GHz POWER7 eight-core processor. Chatbot developers can leverage a wide range of technology frameworks, including: Node SDK (Software Development Kit)  Java SDK  Python SDK iOS SDK  Salesforce SDK  Unity SDK  to make IBM Watson with different platforms.	Azure Bot Service provides a scalable, integrated connectivity and development service to help developers create intelligent bots that can engage users across multiple platforms.  The development tools are provisioned with the Microsoft Bot Builder SDK, which .NET and Node.js developers can access and use to create an engaging talking bot.  The SDK also includes an emulator for debugging your bots, as well as a large set of sample bots you can use as building blocks. The cloud-based service is globally accessible across 141 countries, and bots can communicate in multiple languages including:  English French  Italian  German  Spanish  Japanese  Korean Chinese.	This NLP-powered chatbot builder offers resources to create engaging, scalable chatbots to serve different purposes.  Wit.ai learns human language through every interaction and leverages the community to evolve and improve further. Chatbots with Wit.ai support 50+ languages, and developers have the flexibility to use any of the available SDKs, including:  Android,  iOS,  Cordova,  HTML,  JavaScript,  Node.js,  .NET,  Unity,   Java And other.

When you know what bot-building platform you will choose, it’s time to hire chatbot developers and start building your bot.  

Step 4. Create a chatbot MVP

You can create a simple bot with a DIY platform within several hours. But to develop an AI chatbot is far more difficult. However, to find out whether a chatbot suits your business needs, you do not need to spend a fortune on its development. We recommend launching such projects as MVP (minimum viable product). For chatbot MVP, we suggest only pre-scripted answers. To understand the project scope, check out our estimation of the MVP of a Facebook Messenger bot for e-commerce product recommendation. 

FeatureScreen	Functions required	BackEnd
Architecture		12 hours
Customization for agents	– Logo – Agent Name	60 hours
Connection to Data Server API		16 hours
Switching between a chatbot and human agent	– Switch between Human Agent and Chatbot	32  hours
Gathering of data from user	– Type of product – Color – Size – Material	32  hours
Data transfering to API, receive results	-The chatbot search for relevant products in your online store database	16  hours
Search Results	– Show search results	8  hours
Show more variants	-The chatbot shows more relevant products from the selected category	16 hours
Chatbot Management	– Define questions and answers	40 hours
Total		From 232 hours

In our experience, the cost to develop a chatbot MVP varies from $3,500 to $5,000 and takes from 2 to 6 months, depending on the bot’s complexity and the number of integrations. 

Step 5. Launch your chatbot

After your development team has created a bot and ensured it is without errors, it is time to launch it on your e-commerce website. Now you need to pay extra attention to how the chatbot interacts with clients and ask them for feedback. You may also ask users what features they would add to your chatbot. After gathering all user feedback, bring them to your development team to prioritize features to implement during the second e-commerce chatbot development stage.  

In a nutshell

More and more people want to communicate with businesses via messengers, and online retail is one of those industries that can receive a significant profit from this trend. Therefore, to keep the most effective communication with users, increase sales and engagement, and build loyalty, a chatbot is a must. Various use cases and successful e-commerce chatbot examples show that chatbots for the retail industry are a win-win for both sellers and buyers. 

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Real estate is one of those industries where communication plays an essential role. However, not all people who contact real estate agencies are qualified leads that will buy a flat. Thus, many real estate brokers waste their time answering the same questions from people who would never return to sign a contract. 

This is where chatbots come in handy. By using real estate chatbots, agencies can not only qualify leads and send follow-ups, but also improve engagement and increase sales.

In this article, we will tell you about chatbots for the real estate segment and how you can build one that will perfectly suit your business strategy.  

But first, let’s find out what benefits chatbots bring to real estate businesses. 

Benefits of chatbots for Real estate 

When selling real estate, agencies, and real estate agents receive many queries from prospective customers who want to know more about the development. In a perfect world, a real estate agent gets in touch with potential buyers and handles the one-on-one conversation which results in buying a house or a flat. But in the real world, the selling process appears not as simple as it seems. Often people, who received detailed information from a real estate broker, disappear, or the real estate agent could not physically handle all queries from potential clients. To get deeper insights into the Real Estate segment, we asked Nadiia Pavlik, a Real Estate broker from Keller Williams Chicago – Lincoln Park, to share her experience in communicating with clients. 

Chatbots might bring the following benefits to real estate businesses: 

• Immediate responses. A chatbot can answer the client’s queries immediately via a website, messenger, or social media, like Facebook. While Chatbots save up to 30% in customer support costs, clients do not have to wait for answers from a human agent about their interest in a property. 

• Availability 24/7. Unlike real estate agents, who might not be available throughout the day, chatbots provide your customers with information outside of working hours. Besides, chatbots can help you to save on customer service costs by speeding up response times and answering up to 80% of routine questions.
• Personalized offers. All customers are looking for different types of apartments and property types. Chatbots provide customers with a series of questions to come up with more relevant offers, which is more effective than collecting information via physical copies or forms.
• Improved leads qualifying. Chatbots can qualify your potential leads by comparing their behavior with the behavior of the previous clients and assigning them scores of lead maternity. In this way, your real estate brokers can communicate with only highly-qualified leads.
• Automated scheduling. When the chatbot qualifies the lead as a potential buyer, one can schedule a home tour via chatbot. Besides, bots can introduce the client to a real estate agent for more detailed communication.  
• Effective follow-ups. You can enable your chatbot to send automated follow-ups to potential customers via the medium they choose, including email, social media, messengers, or even SMS.

Now that you are aware of chatbot benefits for real estate, let’s find out what type of chatbot will meet your business goals. 

Types of chatbots for real estate

Chatbots vary depending on use cases and complexity. Currently, there are three types of chatbots: 

Scripted bots

Scripted, or rule-based is the simplest type of chatbot. They have strict logic to search commands in the input text. Such bots are programmed to answer simple questions or perform simple actions. You can use them as online assistants for answering the FAQ section or collecting customers’ personal information. 

You can create this type of bot without help from bot developers using the following DIY bot-builder platforms:

• Chatfuel
• Flow 
• MobileMonkey
• ManyChat

By using these platforms you can develop a simple bot for your website, messengers, or social media such as Facebook. At the same time, consider that bot-building platforms do not provide a lot of room for customization of a chatbot interface. 

But if you are looking for a solution to optimize business processes, you can choose between the next two types of chatbots. 

Platform-based AI chatbots

This type of bot uses more sophisticated data processing technologies, such as Natural Language processing to process user input and provide relevant not-prescripted answers. You can build such a bot for providing users with relevant results from your real estate catalog and lead qualification. 

You can build an AI-chatbot using a ready-made platform, such as:

• IBM Watson Assistant 
• Semantic Machine

Or even machine learning bots with cognitive abilities using: 

• Microsoft Azure 
• Wit.ai Chatbot Platform
• Dialog Flow platform

Most of these platforms support integration with websites and most popular messengers such as Whatsapp, Facebook Messenger, and Telegram. 

If you want to develop such a bot, you may need help from chatbot developers for initial bot settings and training. 

Platform-based AI-chatbots are the best option if you have a small business and do not need custom functionality. But if you do, consider the next type of chatbots.  

Custom NLP and AI chatbots

Such chatbots are custom applications created by developers. You can apply AI bots for solving particular complicated business issues, such as providing customers with personalized flat recommendations, scheduling an appointment with a real estate agent, saving communication with a customer in ERP for relevant recommendations, and so on.

The most popular programming languages for developing custom chatbots are: 

• C++ 
• Java
• Python 

 Developing custom chatbots is the most time and money consuming option. Still, it is quite popular among big companies and enterprises, since custom code gives you the possibility to empower the chatbot with any feature, type of customization and integration to meet your business needs. 

Once you have decided on the type and complexity of your chatbot, you can start developing one using the step-by-step guide below. 

How to develop a real estate chatbot 

To integrate a chatbot to your real estate business you need to go through the following steps:

Step 1. Define your Business Needs

During this step, you should find out the issues you want to solve with the help of a chatbot, what exact features your chatbot should perform, and how complex it should be. For instance:

• Receive more qualified leads 
• Improve customer engagement 
• Automate lead generation and validation
• Or all at once. 

Step 2. Evaluate Budget 

Now, consider how much you want to invest in your chatbot. You may have a considerable or limited budget or no budget at all. Let’s see what solution may suit your budget. 

Tight budget

With a tight budget, you cannot build a custom solution with numerous integrations. Instead, you can create a script-based one-task online assistant. Thus, you can choose among bot builders previously discussed in this article. Such DIY chatbot platforms are user-friendly, have a drag-and-drop menu, and have low charges for publishing a bot. 

DIY chatbot platform fees
Chatfuel	Free – Up to 1000 Subscribers From $15 /mo – price adjusts according to the number of subscribers From $199 /mo – a fixed fee add-on to Pro plan
Flow XO	Free – up to 500 interactions / up to 5 bots or active flows Standard Plan-up is $19/mo for 5,000 interactions / up to 15 bots or active flows
MobileMonkey	Free plan Advanced plans from $48/year
ManyChat	Free  Pro plan – 500 subscribers at $10/mo and it can scale up to $145/mo for 25000 subscribers

Budget for a full-scale project

If you have enough budget to build a feature-rich bot with third-party integrations, consider developing a platform-based or custom AI chatbot. In both cases you will need help from a chatbot development team, since complex platforms, and custom code in particular, requires specialists with considerable expertise. Hiring chatbot developers for your real estate agency has numerous advantages. The team would be responsible for initial chatbot setting and training, testing and further technical maintenance. 

AI-chatbot building platforms fees
IBM Watson Assistant	Free – 10,000 messages/month Plus, Premium, IBM Cloud Private – on request
Semantic Machine	On request

Machine learning bot-building platforms fees
Microsoft Azure	On request
Wit.ai	Free
Dialog Flow	Standard Edition – Free Enterprise Edition Essentials – $0.002 per request Enterprise Edition Plus – $0.004 per request

Step 3. Consider integrations

Now, you should decide how many integrations your bot will have. In most cases, developers perform all the chatbot’s integrations. For example, for a simple Facebook Messenger bot, you will need a developer who will integrate it with your Content Management System (CMS). You can also connect your chatbot with your  Customer Relationship Management (CRM) and other third-party software, as email marketing tools, databases, and others. Below, we have gathered a list of the most popular and useful integrations for a real estate messenger bot: 

SharePoint & Office 365	Suitable for handling document search and event management.
Open Authorization for SharePoint	Suitable for document storage, management, authentication, and many other administrative tasks.
CRM Applications	For providing better customer support, you can integrate your bot with Salesforce CRM, Zendesk or LivePerson.
Enterprise Content Management	This integration is handy to allow your real estate agents, customers, and managers to find relevant documents quickly
ERP Systems	With a chatbot, you can add more functionality to you  ERP systems for overall management without the need of a backend database or dashboards.

Step 4. Develop MVP 

While you can build an MVP with DIY platforms within a few hours, developing a sophisticated bot requires more time and effort from both you and bot developers. 

We recommend launching complicated chatbot projects as MVP. This approach allows testing a chatbot without spending a considerable amount of money.

For developing an MVP of the Facebook Messenger chatbot, consider the features in the table below. To give you an idea of how much time the development stage will take, we have also added estimation in hours.

FeatureScreen	Functions required	BackEnd
Architecture		12+ hours
Customization for agents	Logo Agent Name	60+ hours
Connection to Data Server API		16+ hours
Switching between a chatbot and human agent	Switch between Human Real estate Agent and Chatbot Return, Forward functions for user	32+ hours
Gathering of data from user	Type of house Number of bedrooms Number of bathrooms Cost	32+ hours
API integration	Data transfering to API Receive results	16+ hours
Offers	Show search results	8+ hours
Show more variants		16+ hours
Admin Login		8+ hours
Chatbot Management	Define questions, and answers	40+ hours
Total		From 240 hours

So, how much does a real estate messenger bot cost? The cost to develop a Messenger chatbot MVP for a real estate business varies from $4,000 to $8,000 and depends on the project’s complexity and the number of integrations. 

Step 5. Launch MVP

After the release of a real estate chatbot MVP, ask your real customers to test it and pay attention to the following elements:

• User Experience (UX)
• Bots Flow
• Speed of Response 
• Answers’ Accuracy
• Fallbacks 
• Engagement

After conducting the beta testing of your chatbot and gathering feedback, you will have a clear idea about what you can improve in your chatbot and what features to add. 

Step 6. Second development stage

At this stage, you and your development team need to enrich the chatbot with additional features and fix the bot’s trouble areas. You should also continue analyzing the bot’s interactions with real users and track how well your bot is working by connecting it with analytics.  

However, you should not forget about the maintenance and technical support of your bot. For this task, we recommend hiring chatbot developers who will monitor the bot’s performance, at least during the initial post-launch period, and fix bugs on the fly. 

In a nutshell 

Real estate is one of those industries that’s evolving thanks to chatbots. You should consider developing messenger bots for your real estate business if you want to reduce customer support costs, receive more qualified leads and, as a result, increase your income. 

The complexity of your bot should be based on your business needs. 

• Consider developing a scripted bot if your business needs a bot that will be available 24/7 to answer simple user questions. 
• Choose between platform-based or custom AI chatbots if you want your bot to perform more complex tasks, such as lead validation, follow-ups, and personalized recommendations.

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What does a perfect vacation overseas consist of? Before taking a sunbath on the beach, you need to spend time to find accommodation within your budget, book a flight, and spend at least two hours to check-in — that’s how this was before chatbots in the travel industry appeared. Now, using a chatbot and your smartphone, you can book and pay for hotels, flights, and even check-in online without a hassle. 

If you want to develop a chatbot for your travel agency, this article is right for you. Below, we share the most successful usage of travel chatbots and a step-by-step guide on how to develop one. 

But first, let’s find out what the advantages of using a chatbot for your travel business are. 

Why you need a travel chatbot for business: top 5 benefits

Online travel companies are simplifying the way we organize our vacation. When planning a trip, around 84% of travelers use online travel booking agencies, such as Kayak, Expedia, or TripAdvisor. Still, the market of travel booking is flooded with irrelevant options, and to find the best one, travelers visit 38 sites on average, and for 62% of travelers, it is hard to find the right deal. At the same time, Huxley’s survey said 87% of travelers want to interact with a travel chatbot to find the best accommodation while saving time for the indecisive search. Moreover, 79% of them expect a travel chatbot to perform as an online travel concierge. 

And now, let’s look at chatbots from a business perspective.

Consider integrating a chatbot to your travel business, since it will bring the following benefits: 

• Increase engagement. As we have said, travelers are looking through various travel websites to find the best trip. At the same time, if your online travel chatbot can provide users with relevant offers, your agency will become more valuable for your clients and increase the engagement rate. 
• Reduce workload and operation costs. When a traveler is interested in a particular tour or hotel, one is more likely to ask a question to receive more information. The bad news is that your customer support team spends at least two hours a day answering repetitive questions. FAQ chatbot can provide travelers with answers to basic questions, thus reducing both the workload on your employees and customer support costs up to 30%.
• Increase sales. Travelers want to book a hotel, rent a car or pay for their ticket as quickly as possible and find long forms an unpleasant and irritating experience. Thanks to the integrated payment gateway, a Messenger travel chatbot could seamlessly get your customers through the sales funnel and close a deal with fewer interactions. To achieve this, travelers need to enter their credit card information into Facebook Messenger, and the platform will save it for next friction-free payments. 
• Built community. Apart from business logic, like built-in payment and booking, a chatbot could be a handy tool for building a community around your travel agency by sharing their travel experience and inspiration. To achieve this, you can cooperate with influencers and travel bloggers, post their articles or videos in your blog, and suggest this content to travelers via a chatbot. 
• Attract new customers. Customer acquisition cost is an essential metric, not only in travel but also in other industries. Proactive travel chatbots decrease CAC and attract new customers most effectively by starting a conversation. You can empower a bot to send a welcome message to anyone who makes a booking on your website or place a comment on your Facebook page. Besides, your chatbot can send relevant information based on keywords used by your customers. 

In a nutshell, chatbots can improve the booking experience of your customers by providing them with more relevant recommendations, while enhancing your business metrics and saving operation costs.  

The most successful use cases of travel agency chatbots

And now, let’s find out about famous travel chatbot use cases and what results they receive from such an integration. 

• Reservation agent

By using this type of chatbot, travelers can book airline tickets, make hotel reservations, car rentals, cruises, and even vacation packages via their website or Facebook page. To get relevant offers, travelers need to provide the bot with their requirements such as destination, date, type of accommodation, price range, and so on. 

The chatbot by travel agency Expedia.com works on this scenario. After the user receives relevant hotel search results, one is redirected to Expedia’s website to make a direct booking. Then, the chatbot sends a user a link with itinerary in Messenger. Apart from Facebook Messenger, travelers can use this bot on Amazon Alexa virtual assistant and ask for booking updates via voice commands. 

• Personalized digital travel assistant

With natural language processing (NLP), travel chatbots recognize particular user queries such as “exotic Japanese weekends” and provide one, not only with hotel recommendations and transportation but also with local places to visit. Travelers receive immediate and relevant recommendations without conducting long surveys. Moreover, such chatbots help travelers to find the nearest rental car service and give local weather forecasts while keeping in mind the traveler’s budget and even dietary requests. In this way, personalized travel assistants help travelers at each stage of their travel and keep all their documents and tickets in one place.  

One example is the Mezi AI chatbot, recently acquired by American Express. The company motto is “everyone traveling for work deserves a first-class experience.” This chatbot allows travelers to book hotels, flights, and even a table at restaurants.  

• Customer care manager 

This use case of travel chatbot provides travelers with check-in notification, flight status updates, boarding pass, and even booking confirmation via the chosen channel, and simplifies the customer service. 

This exact type of chatbot is used by KLM Royal Dutch Airlines, built on the DigitalGenius platform. The company’s AI chatbot, trained with over 60,000 questions and answers, can provide travelers with non-pre scripted answers about information and updates on their flight via Facebook Messenger. After the bot launch, the KLM Facebook page received 40% more messages. Currently, KLM chatbot speaks 13 languages and responds to 15,000 queries in Messenger weekly. Since its release date, KLM chatbot answered 1.7 million messages sent by over 500,000 people.

Apart from social media networks, KLM also developed a chatbot for Google Assistant. The bot answers frequently asked questions, provides information about airline requirements via voice, and can even give tips on how to pack bags for a flight based on destination.

• Two-sided chat agent 

If you own a two-sided travel marketplace, this bot travel use case will be useful for your business. This type of chatbot connects travelers and hotels to check hotel availability, look up necessary information such as check-in times, or parking reservations. The two-sided nature of this chatbot allows hotels to send notifications in response to user queries. 

This type of travel chat app was developed by Booking.com, a travel marketplace. Right now, the chatbot can respond to 30% of customers’ hotel-related questions in under 5 minutes, according to Booking.com.

• Local insider

Many travelers are going to another country searching for an authentic experience. They want to eat, entertain, and live as the locals do. If you’re going to provide travelers with local recommendations on restaurants with local cuisine, festivals, and other activities, a local insider chatbot will be the best choice. In this way, your customers will receive relevant information without spending hours searching for the most recommended places on social networks. 

An excellent example of such a tourism chatbot is Bebot, launched on the threshold of the Tokyo 2020 Olympic Games. The main goal of this bot is to illuminate cultural and language barriers for an increasing number of foreign tourists. This bot help users to receive personalized recommendations on sights, local food and helps navigate around the country. 

[Source: Medium]

How to develop a chatbot for a travel agency in 6 steps 

Below, we have gathered the main steps you need to complete to create the best chatbot for your travel agency. 

Step 1. Decide the chatbot’s functionality

At this step, you need to define the purpose of your chatbot, set up goals and objectives. To determine the proper chatbot objectives, you need to answer the following questions: 

• What is your business size? 
• Do you need a chatbot to handle customer queries or to entertain people? 
• What business process you want to automate with your chatbot? 
• How many people will use your chatbot? 
• Do you need an integration of your chatbot with databases, CRM, or CMS? 

After answering these questions will help you have a clear idea about your chatbot project, and you can enter the next step. 

Step 2. Choose the chatbot type

Once you know the objectives of your project, it will be easier for you to choose the right chatbot type from  among the following: 

Rule-Based or Scripted Chatbots are the simplest type because they use a decision tree to communicate with users. When communicating with users, scripted bots recognize keywords and channel them down the correct path to achieve their goals, like information about current best deals, and so on. Such chatbots have a very limited skill set. Still, you can use them for simple tasks such as:  

• Customer support agents that provide customers with automated responses 
• Engagement bots that inform customers about special offers 

AI-Powered Chatbots are more complex chatbots, often empowered with Natural Language Processing (NLP) and Machine Learning (ML) algorithms. Unlike rule-based chatbots, AI-powered bots can answer a user with non-pre defined responses, and ML helps them to learn from each integration with the user and remember one’s preferences.

Choose this type of chatbot if you want to develop: 

• Booking agents that help users to buy or book something 
• Recommendation agents that gather requirements from the customer and then show relevant results 
• Personal travel concierge that will help users find, not only hotels but also book flights and provide the user with local insights  
• Comparison chatbot that will compare hotel rooms and flight ticket prices 
• Automated check-in chatbot that allows the user to check-in to the flight or hotel 

Step 3. Evaluate chatbot channels 

Now, you should consider where you can use your chatbot. The most popular channels for chatbots are: 

• Embedded chat on your travel website, 
• Your mobile travel application;
• Mobile carrier channels (SMS, USSD)
• Messaging app (Facebook Messenger, WeChat, Kik, Line, Viber)
• If you want to use a chatbot in both your website, Facebook Messenger and Telegram, you can create an omnichannel chatbot, 

Then you need to make sure whether or not the chosen channels offer an open API, so your travel chatbot developers can integrate it easily. In this case, the most effective strategy is to select the most popular channel among your users and integrate a chatbot to other channels with time. 

Step 4. Choose the best platform 

Depending on your chatbot type and communication channel, you will select the platform to build your future chatbot. 

To build a scripted-based chatbot with if/then logic, you can use one of the following platforms: 

• Hubspot conversations
• Chatfuel
• Facebook Messenger

Since these platforms have an intuitive drag-and-drop menu, you can create a chatbot without hiring chatbot developers. 

However, if you want to create a more sophisticated AI and ML bot that solves complex business tasks, consider that you’ll need to hire chatbot developers for initial bot settings and training. As for a technological solution, consider the following platforms for building AI chatbots: 

• AWS
• Wit.ai
• IBM Watson Assistant
• Microsoft Bot

If you need to create a custom chatbot, you will need to hire chatbot developers to work on the following custom chatbot components:

• The script of the custom chatbot will include the whole dialogue from a greetings message, which gathers the user’s requirements, to the “goodbye” message. Also, consider those scenarios where the bot will not understand the user’s input and cases when the bot will need to switch the communication with the traveler to a human agent. 
• NLP, also known as Natural Language Processing, helps a chatbot to extract the user intent, i.e., understand what your users want by defining particular entities in the message.
• The backend of a custom chatbot should process messages with Natural Language Processing. The custom chatbot backend should also comprise business logic and include third-party integrations, like payment gateways. 

Step 5. Develop a chatbot MVP

Now you need to hire chatbot developers that will help you to prioritize the chatbot’s business tasks and implement the most important features in the travel chatbot MVP.

An MVP means a minimum viable product. This approach is used in software development when a client wants to test a hypothesis without spending a considerable amount. 

To give you an idea of the travel chatbot’s main features, as well as the project scope, we made a travel chatbot MVP estimated in hours. 

FeatureScreen	Functions required	BackEnd
Architecture		12 hours
Customization for agents	Logo Agent Name	60 hours
Connection to Data Server API		16 hours
Switching between a chatbot and human agent	Switch between Human Travel Agents and Chatbot Return, Forward functions for user	32 hours
Gathering of data from a user (Search for hotel, tour, full package flow)	Dates Number of adults Number of Infants Meal Hotel stars	32 hours
Data transferring to API, receive results		16 hours
Tour Proposals (Search Results)	Show search results	8 hours
Show more variants		16 hours
Admin Login		8 hours
Chatbot Management	Define questions, and answers	40 hours
Total		From 240 hours

Step 6. Enrich chatbots for the travel sector with additional features

At this step, your development team launches the chatbot MVP. But this is not the end of your chatbot development process. Why? Because at this step you need to thoroughly analyze how your chatbot interacts with your customers. To achieve this, ask your customers to test your chatbot and give feedback. You may also ask them what features you need to implement to your chatbot during the second development stage. Consider that chatbot creation is an iterative process that includes gathering the data, reviewing and applying changes to the chatbot. 

Now that you are aware of the main steps of chatbot development, it is time to find out about chatbot development costs. 

How much does it cost to develop a chatbot: rule-based vs ai vs custom 

As we have said, you can create a simple rule-based chatbot with DIY platforms, so you save money on chatbot developers. Most chatbot platforms are free to use, but also have paid premium plans: 

Platform	Pricing plans
Hubspot conversations	Free of charge
Chatfuel	Basic plan- free, up to 1000 Subscribers Pro plan – from $15 /month gives more advanced features  Premium – from $199/month gives advanced tools and expert guidance.
Facebook chatbot	Free of charge

To develop AI-based chatbots you will need to hire a chatbot development team for bot training, third-party integrations and other settings. Consider that the hourly rate of chatbot developers varies from country to country and level of experience.

Front end developer hourly rates across countries:  

• The U.S. from $90/hour 
• Western Europe from $60/ hour 
• Eastern Europe from $40/hour 

Back-end developer hourly rates 

• The U.S. from $120/hour 
• Western Europe from $80/ hour 
• Eastern Europe from $50/hour 

 In addition, take into account the following costs charged by  AI chatbot development platforms:  

Platform	Pricing policy
AWS Lex	Free plan – up to 10,000 text requests and 5,000 speech requests per month  After a year’s trial period, you are charged based on the number of text or voice requests processed by your bot: $0.004 per voice request,  $0.00075 per text request
Wit.ai	On request
IBM Watson Assistant	Free plan – 10,000 Messages/month Standard – from $0.002675 USD/message Plus – On request
Microsoft Azure Bot Service	On request

The cost to create AI chatbot starts from $6000, and the development stage takes 3 months. 

As for custom chatbot development, this is the most costly option. To create a custom chatbot you need to hire a development team, including front and back end developers, designers, QA engineers, and project managers, who will work on your project. That is why custom chatbots are so expensive – the price of custom chatbots starts from $40,000, and the development stage might take from six to eight months.  

Wrapping up

If you want to stay ahead of competitors, provide customers with a high-quality customer experience, and keep them engaged, your travel business needs a travel chatbot. 

With many usage cases, you can develop a chatbot to meet the needs of a travel business of any size. 

Besides, with a wide range of DIY building platforms, you can even create a simple chatbot by yourself. 

But, if you want to automate business operations with an AI travel chatbot, you will need to hire a chatbot development team for initial bot settings. 

Related articles:

HOW CAN CHATBOTS HELP E-COMMERCE BUSINESSES?

WHAT IS THE BEST WAY TO CREATE A CHATBOT: PLATFORM VS. CUSTOM

HOW CHATBOT CAN MAKE AN EFFICIENT PATIENT SUPPORT SYSTEM