diff --git a/docs/business-model/value-creation-model.md b/docs/business-model/value-creation-model.md index 7b0959e..0d9366b 100644 --- a/docs/business-model/value-creation-model.md +++ b/docs/business-model/value-creation-model.md @@ -93,29 +93,31 @@ If an agent proposes a finding as Verified Evidence and the human reviewer rejec - Absence from sampled AI answers is Indicative Evidence. - Agent-reported findings without supporting artifacts are not sufficient for Verified Evidence. -## Client Targeting: Volume × Capacity × Ticket Size +The evidence-tier rules above govern how a finding is *reported*. The section below governs a separate question: which clients are worth prioritizing in the first place. -**Status:** Proposed addition, pending review +## Client Targeting: Visibility × Capacity × Ticket Size + +**Status:** Accepted — 2026-08-06 **Origin:** Derived from Layer 3 conversation design (Capacity question) and cross-checked against the economics capture tools ### The problem with "target high-volume businesses" Volume is a useful proxy for value, but it's not the same variable, and treating it as one leads to mistargeting. Three things actually determine how much a DOP engagement is worth to a given business, and they can point in different directions: -| Variable | What it measures | Why it matters | -|---|---|---| -| **Visibility** | How many people already see this business in search/Maps/AI answers per month | A discovery failure only costs money if there was traffic to lose. Fixing a booking button on a 5-review business with no search presence recovers close to nothing. | -| **Capacity** | Whether the business could actually absorb more clients right now | If a business is already turning people away, more discovered leads don't convert to more revenue — they convert to a longer waitlist. The value proposition has to shift from "more customers" to "better customers" or "less operational friction." | -| **Ticket size** | Revenue per transaction or per client relationship | A lower-volume, high-ticket business can have more dollars at stake per lost lead than a high-volume, low-ticket one. Volume alone undercounts value here. | +| Variable | What it measures | Why it matters | +| --------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | +| **Visibility** | How many people already see this business in search/Maps/AI answers per month | A discovery failure only costs money if there was traffic to lose. Fixing a booking button on a 5-review business with no search presence recovers close to nothing. | +| **Capacity** | Whether the business could actually absorb more clients right now | If a business is already turning people away, more discovered leads don't convert to more revenue — they convert to a longer waitlist. The value proposition has to shift from "more customers" to "better customers" or "less operational friction." | +| **Ticket size** | Revenue per transaction or per client relationship | A lower-volume, high-ticket business can have more dollars at stake per lost lead than a high-volume, low-ticket one. Volume alone undercounts value here. | -**The core claim this section replaces:** "higher volume = higher value." **The corrected claim:** high value requires high visibility *and* either open capacity or high ticket size. Volume alone, without one of those two, does not reliably predict what the engagement is worth. +**The claim this section replaces:** "higher volume = higher value." **The corrected claim:** high value requires high visibility *and* either open capacity or high ticket size. Volume alone, without one of those two, does not reliably predict what the engagement is worth. ### Practical segmentation -| | **Open capacity** | **At/near capacity** | -|---|---|---| -| **High visibility** | Best-fit segment. Discovery fixes convert directly into new revenue — the standard "plug the leak" pitch applies cleanly. | High-value but different pitch. Frame around protecting reputation, raising ticket size, and filtering for higher-value clients — not lead volume. See Capacity branch in the rapid economics capture tool. | -| **Low visibility** | Lower near-term value regardless of capacity — there isn't much traffic to recover yet. May still be worth pursuing on ticket size alone, or as a longer-term visibility-building engagement rather than a quick-win pitch. | Lowest-priority segment for this service as currently scoped — little to recover and nowhere to put it if recovered. | +| | **Open capacity** | **At/near capacity** | +| ------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | +| **High visibility** | Best-fit segment. Discovery fixes convert directly into new revenue — the standard "plug the leak" pitch applies cleanly. | High-value but different pitch. Frame around protecting reputation, raising ticket size, and filtering for higher-value clients — not lead volume. See Capacity branch in the rapid economics capture tool. | +| **Low visibility** | Lower near-term value regardless of capacity — there isn't much traffic to recover yet. May still be worth pursuing on ticket size alone, or as a longer-term visibility-building engagement rather than a quick-win pitch. | Lowest-priority segment for this service as currently scoped — little to recover and nowhere to put it if recovered. | Ticket size is a modifier across all four cells: a high-ticket business in any cell is worth more attention than the table alone suggests, since the dollar value of each recovered or protected client is larger.