Now that AI has slashed our cost of service delivery, how should we adjust our Target Market in our V/TO® to pursue smaller, high-volume clients we previously ignored because they were not profitable to support?

Question

Tyler Smith · Accepted Answer

When technology significantly reduces your cost of service delivery, it opens up new, highly profitable market opportunities. To capitalize on this, you must strategically review and refine your Target Market, or the Who, in your V/TO Marketing Strategy.

Begin by analyzing the unit economics of your service delivery. If automated systems allow you to serve smaller clients with minimal manual effort, calculate the potential lifetime value and acquisition costs of this new segment. If the margins are attractive, you can expand your target market to include this high-volume tier without diluting your focus on your core enterprise clients.

To implement this shift, update your Marketing Strategy in your V/TO. Define the unique needs of this new segment and develop a tailored message that speaks directly to them. Then, assign a specific quarterly Rock to your sales and marketing seats to build and launch a targeted campaign. By aligning your market strategy with your new operational capabilities, you can unlock a powerful new revenue stream and accelerate your business growth.