How to Create an SMS Chatbot in (Simple + AI Setup)
Most businesses miss 80% of SMS leads because they respond too slowly or don't qualify them properly. This guide shows you how to build an SMS chatbot that automatically qualifies leads and books appointments - with two versions: a simple scripted flow and an advanced AI agent that handles natural conversations.
Why SMS Chatbots Convert 3X Better Than Forms
Traditional lead forms have an average conversion rate of just 20-30%, while SMS conversations convert at 60-80%. The difference? Immediate, two-way communication that feels personal rather than transactional.
At 3:42 in the video, we see how the solar company example gets instant responses by asking simple numbered questions via text. The AI version takes this further by handling unexpected questions naturally while still guiding leads to book appointments.
Key stat: Businesses using SMS chatbots report 3-5x more booked appointments compared to web forms, with 80% of leads responding within 90 seconds.
The 2 Essential Tools You Need
You only need two core tools to get started: ManyChat for the chatbot logic and Twilio for SMS capabilities. The AI version adds three more components (OpenAI, Relevance AI, and Make.com) but begins with the same foundation.
ManyChat handles all the conversation flows and integrations, while Twilio provides the actual phone number and messaging infrastructure. Together they create a complete solution without needing to code anything.
Basic Version: Scripted Qualification Flow
The simplest version uses a rigid script that asks two qualifying questions (homeowner status and electricity bill amount) then sends either a booking link or website URL based on the answers. This works surprisingly well for many businesses.
At 7:15 in the tutorial, we see how to set up the branching logic in ManyChat. The key is using numbered responses (1 for yes, 2 for no) to make it dead simple for leads to reply via text message.
AI Version: Natural Conversation Flow
The AI version maintains the same qualification goals but handles conversations naturally. If a lead asks "How much does solar cost?" before booking, the AI answers briefly then guides them back to the qualification flow.
At 18:30, we see the AI checking calendar availability in real-time and booking appointments directly into Google Calendar. This creates a seamless experience where leads can get questions answered and book all via text.
How the AI Architecture Works
The system uses a clever chain of tools: ManyChat collects messages, Make.com routes them to Relevance AI (which uses OpenAI), then breaks the response into SMS-friendly chunks sent back through ManyChat.
This architecture (shown at 15:10) keeps everything no-code while allowing for sophisticated AI conversations. The key is breaking long AI responses into multiple short texts to maintain the natural SMS feel.
Step 1: Setting Up ManyChat
Start by creating a ManyChat account and installing the SMS template (22:40). The template includes two key flows: one to collect messages from users and another to send AI responses back via SMS.
Critical step: Don't rename any of the default fields in the template (like "AI answer 1", "AI answer 2") as these are used by the integration. Changing them will break the connection to Make.com.
Step 2: Connecting Twilio
Twilio provides the phone number and handles actual SMS delivery. Get a trial number (5:50), then connect it to ManyChat using your Account SID, Auth Token, and phone number from Twilio's dashboard.
Pro tip: Enable ManyChat's link shortener (9:30) since SMS has a 160-character limit. This automatically shortens any links you include in your messages to save space.
Step 3: Building the AI Agent
The magic happens in Relevance AI (26:40) where you create the agent, give it instructions, feed it knowledge (like FAQ answers), and connect tools like Google Calendar. The prompt is critical - it tells the AI how to behave in an SMS context.
Key settings: Use GPT-4 or higher, keep responses under 160 characters, and configure the calendar tool to offer time slots across different days (not multiple times on one day) for better conversion.
Watch the Full Tutorial
See the complete setup in action starting at 3:10 where we test both versions - the basic scripted flow and the AI version that handles natural questions while still qualifying leads and booking appointments.
Key Takeaways
SMS chatbots dramatically increase lead conversion by providing instant, conversational responses. The basic version works for simple qualification, while the AI version handles complex conversations while still driving toward appointments.
In summary: 1) Start with the basic version to test SMS lead gen, 2) Upgrade to AI when you need to handle questions naturally, 3) Always keep responses short and guide conversations toward booking.
Frequently Asked Questions
Common questions about SMS chatbots
You need two main tools: ManyChat for the automation logic and Twilio to send/receive text messages. For the AI version, you'll additionally need OpenAI, Relevance AI, and Make.com to connect everything together.
The basic version only requires ManyChat and Twilio, which both have free tiers to get started. The AI components add more capability but also more complexity and cost.
- ManyChat: Handles conversation flows and integrations
- Twilio: Provides the phone number and SMS infrastructure
- Make.com: Connects the different platforms (AI version only)
Twilio offers a free trial with $15 credit. ManyChat has a free plan, and OpenAI starts at $5 credit. The basic version can be set up for free initially, while ongoing costs depend on message volume (about $0.0075 per SMS with Twilio).
The AI version has additional costs for OpenAI tokens and Make.com's paid plan if you exceed their free tier limits. Most small businesses spend $20-50/month total for the AI version at moderate volume.
- Twilio trial: $15 free credit (about 2,000 SMS)
- ManyChat: Free up to 500 contacts
- OpenAI: $5 minimum to start
The basic version follows a rigid script with qualifying questions. The AI version can answer questions naturally, maintain conversation context, and intelligently route leads based on their responses.
While the basic version works well for simple qualification, the AI version creates a more human experience by handling unexpected questions and maintaining context throughout longer conversations.
- Basic: Scripted, rigid flow
- AI: Natural conversations
- Conversion: AI version converts 20-30% better
Absolutely. The templates can be adapted for any service business - real estate, insurance, healthcare, etc. Just modify the qualifying questions and booking flow for your industry.
The same architecture works for any business that takes appointments or needs to qualify leads. The solar example is just one implementation - the patterns apply universally.
- Real estate: Qualify buyers/sellers
- Healthcare: Book consultations
- Services: Schedule estimates
Twilio provides trial phone numbers for testing. For production use, you can purchase a local or toll-free number directly through Twilio's dashboard starting at $1/month.
When setting up your Twilio account, you'll get a trial number automatically. This works for testing, but you'll want to upgrade to a dedicated number before using it in ads or marketing.
- Trial number: Free for testing
- Local number: $1/month + usage
- Toll-free: $2/month + usage
In the AI version, it will say it doesn't have the information and provide an email contact. You can train it on your knowledge base to handle more questions automatically.
The basic version would get stuck on unexpected questions, which is why the AI version is better for businesses that get varied inquiries before booking.
- AI response: "I don't have that info, please email..."
- Training: Add answers to your knowledge base
- Fallback: Route to human when needed
The AI version integrates with Google Calendar through Relevance AI. It checks your availability in real-time and can book appointments directly into your calendar.
You'll need to connect your Google account in Relevance AI and configure the calendar tool settings (shown at 31:20 in the video) to control what times are offered.
- Real-time: Checks current availability
- Auto-booking: Creates calendar events
- Settings: Control hours/days offered
GrowwStacks helps businesses implement automation workflows, AI integrations, and scalable systems tailored to their operations.
Whether you need a custom SMS chatbot, AI automation, or a full multi-platform automation system, the GrowwStacks team can design, build, and deploy a solution that fits your exact requirements.
- Custom SMS chatbots built for your business
- Integration with your existing tools
- Free consultation to discuss your automation goals
Get Your Own SMS Lead Qualification System
Every day you don't automate lead qualification is another day of missed appointments and lost revenue. We'll build you a custom SMS chatbot that books more appointments automatically - in as little as 3 business days.