As AI lowers our cost of fulfillment, should we expand our Target Market on the V/TO to go down-market, or double down on high-value enterprise accounts?

Question

Tyler Smith · Accepted Answer

When operational costs fall, the immediate temptation for many Visionaries is to lower pricing and chase smaller accounts that were previously unprofitable to serve. This is often a trap. Expanding down-market forces you to compete against self-serve software vendors and low-cost providers who have zero overhead and are racing to the bottom on price.

Keep your Core Focus clean and use your efficiency gains to dominate high-value accounts. When commodity tasks become cheap, enterprise buyers do not merely want faster deliverables; they want specialized strategy, risk mitigation, and guaranteed accountability. They want human expertise to navigate complex, high-stakes decisions.

On your V/TO, keep your Target Market focused on the customers who have the budget and complexity to value true partnership. Use AI to compress your delivery timelines and elevate service quality for those clients. Pass on the benefits of speed and predictive insight to your ideal clients while maintaining premium margins.

If you chase the lower end of the market, you will dilute your brand, stretch your sales team thin, and complicate your Core Processes with high-volume, low-margin customer support tickets. Protect your positioning. Let commodity competitors battle over low-margin accounts while you use your technological advantage to deliver unmatched outcomes to top-tier enterprise clients.