SMS has a 98% open rate. Email sits around 20%. Yet most businesses still ignore text messaging as a customer communication channel. An SMS chatbot for business changes that by automating two-way conversations over text, right where your customers are guaranteed to see them.
This guide covers how SMS chatbots work, the best platforms for setting one up, real use cases, and how to decide when SMS is the right channel versus WhatsApp or email.
TL;DR: Boei offers a built-in SMS chatbot with AI auto-reply for $11/month (annual). Bidirectional SMS via Twilio integration, 320-character limit auto-applied, shared inbox with all other channels. SMS credits cost $10 per 100 credits. For developer teams that want to build from scratch, Twilio gives you raw API access but requires engineering resources.
| Tool | Starting Price | AI Auto-Reply? | No-Code Setup? | Other Channels | Best For |
|---|---|---|---|---|---|
| Boei | $11/month + SMS credits | Yes (built-in) | Yes | Website, email, WhatsApp | SMBs wanting AI across channels |
| Twilio | Pay-per-message | No (API only) | No (developer required) | Voice, email, WhatsApp (via API) | Developer teams building custom |
| SimpleTexting | $39/month | No | Yes | SMS/MMS only | SMS marketing campaigns |
| SlickText | $29/month | No | Yes | SMS/MMS only | SMS marketing with automation |
| Podium | $399/month | Yes (limited) | Yes | Webchat, Google, reviews | Local businesses with big budgets |
The numbers on SMS are hard to argue with. Here are the stats that matter:
These numbers exist because of how people interact with their phones. Email inboxes are cluttered with newsletters, promotions, and spam. Text messages feel personal and urgent. When your phone buzzes with a text, you check it.
For businesses, this translates directly to revenue. A lead follow-up sent via SMS gets seen almost immediately. An appointment reminder via text reduces no-shows by up to 38%. A support response via SMS gets read and replied to faster than any other channel.
The problem has always been scale. You cannot manually text every customer. An SMS chatbot solves this by automating the conversation while keeping it personal.
Add SMS to your AI Agent today. Try Boei free for 7 days and see how AI-powered SMS works alongside your website chat, email, and WhatsApp.
An SMS chatbot combines text messaging infrastructure with artificial intelligence to have automated conversations over SMS. Here is the typical flow:
A customer texts your business number. This could be a reply to an outbound message, a response to a marketing campaign, or a direct inquiry.
The AI chatbot reads the incoming text, identifies intent, and checks it against your trained knowledge base. It understands whether the person is asking about pricing, booking an appointment, checking order status, or something else.
The AI generates a contextual reply. For SMS, this means keeping responses concise and under the character limit. Long, paragraph-style responses do not work in text messages. Good SMS chatbots automatically adapt their writing style for the channel.
The reply goes back to the customer within seconds. No waiting for business hours. No "we'll get back to you" holding patterns. Instant, relevant answers.
The chatbot handles multi-turn conversations. If the customer asks a follow-up question, the AI has context from the previous messages. If the conversation needs human attention, the AI escalates to your team.
All of this happens in your shared inbox alongside website chat, email, and WhatsApp conversations. Your team sees every channel in one place.
This is where SMS chatbots deliver the highest ROI. When a prospect fills out a form on your website, the AI Agent can send an immediate SMS follow-up. Speed-to-lead research from Harvard Business Review shows that responding within 5 minutes makes you 100x more likely to connect with the lead compared to waiting 30 minutes.
A text message gets opened almost instantly. Your lead gets a personalized follow-up that says something like "Hi Sarah, thanks for your interest in our consulting services. I saw you had questions about our pricing. Our plans start at $500/month for small businesses. Would you like to schedule a quick call?"
That message gets read. That lead stays warm.
No-shows cost service businesses thousands of dollars per year. A dental practice with 10 no-shows per week at $200 per appointment loses $104,000 annually. SMS reminders reduce no-shows by up to 38%.
An SMS chatbot sends automated reminders 24 hours and 1 hour before appointments. If the customer replies "cancel" or "reschedule," the AI handles the change automatically. No phone tag required.
E-commerce businesses can use SMS to confirm orders, send shipping updates, and notify customers of delivery. These transactional messages have near-100% open rates and reduce "where is my order" support tickets significantly.
For quick support questions, SMS is faster than email and more accessible than live chat (no need to be on your website). Questions like "What are your hours?" or "Do you have this in stock?" get instant AI-powered answers.
While not a chatbot use case specifically, many businesses need SMS for authentication codes, account verification, and security alerts. Having SMS infrastructure in place covers both communication and security needs.
After a service or purchase, send a quick text asking for a rating or review. SMS feedback requests get significantly higher response rates than email surveys because the friction is so low. The customer just replies with a number or a short message.
Boei gives you a fully integrated SMS chatbot as part of its AI Agent platform. SMS is not a standalone product. It works alongside website chat, email, and WhatsApp in a single inbox.
How the SMS channel works:
Boei connects to Twilio for SMS delivery, giving you reliable, global text messaging infrastructure without needing to write code. The AI Agent handles incoming texts the same way it handles any other channel, but with SMS-specific optimizations:
Pricing: Boei plans start at $11/month (annual). SMS credits are $10 per 100 credits, purchased as an add-on. Each outbound SMS costs one credit. Full pricing details on the pricing page.
Best for: Small and mid-size businesses that want SMS as part of a complete AI communication platform, not a separate tool.
See SMS in action. Check the SMS features page or start your free 7-day trial to test AI-powered text messaging with your business number.
Twilio is the infrastructure layer that powers SMS for thousands of applications, including Boei. If you have a development team and want to build a completely custom SMS chatbot from scratch, Twilio gives you the raw tools.
How it works:
Twilio provides APIs for sending and receiving SMS. You write the code that handles incoming messages, processes them, generates replies, and sends them back. There is no built-in AI, no pre-made chatbot, and no user interface for non-technical staff.
What is good:
What is not great:
Pricing: Pay-per-message. US outbound SMS starts at $0.0079/message. Phone numbers cost $1.15/month. No platform fee, but development costs add up fast.
Best for: Engineering teams at tech companies that need complete customization and have the resources to build and maintain a custom SMS solution.
SimpleTexting is an SMS marketing platform designed for sending bulk campaigns, drip sequences, and promotional messages. It includes basic automation but is not an AI chatbot.
How it works:
You create message templates, build subscriber lists, and schedule campaigns. SimpleTexting supports keyword auto-replies (text "HOURS" to get your business hours) and simple automation flows. Incoming messages go to a basic inbox.
What is good:
What is not great:
Pricing: Starts at $39/month for 500 messages. Plans scale by message volume.
Best for: Businesses focused on SMS marketing campaigns (promotions, announcements, drip sequences) rather than conversational support.
SlickText is similar to SimpleTexting but adds more automation features. It focuses on SMS marketing with workflow automation, surveys, and loyalty programs.
How it works:
SlickText provides workflow automation that triggers messages based on events, dates, or customer actions. You can build multi-step sequences that send follow-ups based on replies. It also includes text-to-join campaigns and contest features.
What is good:
What is not great:
Pricing: Starts at $29/month for 500 messages. Higher plans for more volume and features.
Best for: Retail businesses and restaurants that want automated SMS marketing campaigns with loyalty program features.
Podium is an all-in-one communication platform built for local businesses. It includes webchat, text messaging, review management, and payments. Their AI features are expanding but come at a premium price.
How it works:
Podium gives local businesses a text-first communication platform. Customers can text your business number, and messages appear in a shared inbox. Podium's AI can draft reply suggestions and handle basic automated responses.
What is good:
What is not great:
Pricing: Core plan starts at $399/month. Annual contracts are standard.
Best for: Local service businesses (auto repair, home services, medical practices) with sufficient budget that want text messaging, reviews, and payments in one platform.
Choosing the right channel depends on the message type, urgency, and customer preference. Here is a decision framework:
| Factor | SMS | ||
|---|---|---|---|
| Open rate | 98% | 90%+ | 20% |
| Response speed | Minutes | Minutes | Hours to days |
| Message length | Short (320 chars) | Medium | Long |
| Rich media | Limited (MMS) | Yes (images, docs, buttons) | Yes (attachments, HTML) |
| Global reach | Universal | 2B+ users (varies by region) | Universal |
| Cost per message | $0.05 to $0.10 | Free to low | Free to low |
| Best for | Urgent, time-sensitive | Conversational, media-rich | Detailed, formal |
| Customer opt-in | Required (US: TCPA) | Required (WhatsApp policy) | Required (GDPR/CAN-SPAM) |
The best approach for most businesses is using all channels together. A customer fills out a form on your website (chat), gets an instant SMS confirmation, receives a detailed follow-up via email, and can continue the conversation on WhatsApp or SMS whenever it is convenient.
With Boei, all three channels (plus website chat) connect to one AI Agent and one shared inbox. Your team does not need to check four different tools. And the AI adapts its tone and message length automatically per channel.
Getting started takes about 15 minutes. Here is the process:
SMS credits are purchased as an add-on at $10 per 100 credits. Each outbound message uses one credit. Inbound messages are free on most plans.
SMS has a 320-character effective limit. Do not try to send paragraphs over text. If a response needs more detail, the AI should offer to send a follow-up email or link to a relevant page on your website.
In the US, the Telephone Consumer Protection Act (TCPA) requires explicit opt-in before sending text messages. In the EU, GDPR applies. Always collect consent before sending the first message. Boei is EU-based and GDPR compliant, which helps with compliance requirements.
Always include your business name in the first message of a conversation. "Hi, this is [Business Name]" prevents confusion and builds trust. Boei's AI does this automatically based on your configured settings.
Every SMS conversation should include an easy way to stop receiving messages. "Reply STOP to unsubscribe" is the standard approach. This is not just good practice. It is legally required in most jurisdictions.
Not everything belongs in a text message. Order confirmations, appointment reminders, lead follow-ups, and quick support answers work well. Long explanations, legal documents, and detailed proposals belong in email.
17,000+ businesses use Boei to communicate across every channel. Add SMS to your AI Agent alongside website chat, email, and WhatsApp. Start your free 7-day trial today.
An SMS chatbot is software that automates text message conversations with customers. It receives incoming texts, uses AI to understand what the customer needs, and sends relevant replies automatically. Unlike bulk SMS marketing tools, a chatbot handles two-way conversations and can answer specific questions about your business.
Costs vary widely. Boei starts at $11/month with SMS credits at $10 per 100 messages. SimpleTexting and SlickText start at $29 to $39/month for marketing-focused SMS. Podium starts at $399/month for a full local business platform. Twilio is pay-per-message but requires development resources. For most small businesses, Boei offers the best balance of AI capability and cost.
Yes, with the right AI behind it. Keyword-based SMS tools only respond to specific triggers like "HOURS" or "PRICE." AI-powered SMS chatbots like Boei understand natural language and handle freeform conversations. A customer can text "Hey, do you guys do weekend appointments?" and get a real answer based on your actual business hours and availability.
It depends on your market. In the US and Canada, SMS has broader reach because nearly everyone can receive texts. In Europe, Latin America, and Asia, WhatsApp is more popular and cost-effective. The best strategy is offering both channels and letting customers choose. With Boei, both SMS and WhatsApp connect to the same AI Agent and inbox.
Yes. You need a dedicated business phone number for your SMS chatbot. This is typically purchased through a provider like Twilio. You can choose a local number, toll-free number, or short code depending on your needs and budget. The number is separate from your personal phone.
A standard SMS message is 160 characters. Most platforms support concatenated messages up to 320 characters or more, but longer messages may be split into multiple texts on the recipient's phone. Boei's AI automatically keeps responses within the 320-character limit to ensure clean delivery.
Yes. Boei supports webhook integrations that send conversation data to your CRM, project management tool, or any other system with an API. When a customer provides their name, email, or other details via SMS, that information can flow directly into your existing tools. This keeps your team's workflow intact while adding a new communication channel.
Article by
Ruben is the founder of Boei, with 12+ years of experience in conversion optimization. Former IT consultant at Ernst & Young and Accenture, where he helped product teams at Shell, ING, Rabobank, Aegon, NN, and AirFrance/KLM optimize their digital experiences. Now building tools to help businesses convert more website visitors into customers.
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