LLMs Can Defend the Low End of a Market
Smaller customers are often more price-sensitive and require more help even though they generate less revenue. LLMs can lower the cost of personalized assistance, allowing established companies to serve those customers more like enterprise accounts and reducing the opening for bottom-up disruption.
- Small customers can demand disproportionate support.
- Businesses often respond by concentrating on enterprise accounts.
- LLMs lower the marginal cost of personalized service.
- Better low-end service can strengthen competitive defense.
“they enable you to serve that $200 customer in a way similar to the way you would serve that $20,000 customer”
“startups and competitors come in from underneath them and disrupt them.”