The Automatic Customer by John Warrillow

“These four factors—the access generation, light-switch reliability, delicious data, and the long tail—have led some of the world’s most successful companies and promising start-ups to shift their business models to a focus on subscriptions.”
― John Warrillow, The Automatic Customer: Creating a Subscription Business in Any Industry
What a tour de france on subscription business models! Just like the title of the book says, creating a subscription business in any industry and automate customers and MRR aka revenue. This book is very easy to read and implementable. I grew a brunch of business ideas just reading along Warrillow explains about each business case. There are many examples from many industries. One that I like is the socks box subscription. By sending 4 pairs of identical socks to the customer monthly so they don’t have to go buy socks or find the right pairs. This can also be applied to razors, diapers or anything that we use daily. The business solves the problem by helping customers save time to buy stuff that they definitely use regularly. Plus the benefit of the promotion.
If coming up with business ideas is something like moving rocks then this book is definitely a fantastic manual to crack open those ideas out. And then apply the step-by-step guide to build a subscription business that actually generates revenue and make your company more valuable.
✰ Here are some of my learning from this book.
  • Why subscription business is the best?
  • Drive up the value of your company
  • One time sales vs recurring sales
  • Get paid automatically
  • Make your customer sticky
  • Subscribers buy more
  • Increase lifetime value of your customers
  • Smooth out the demand
  • Cut cost of customer market research
✰Here are the nine subscription business models that you can learn from this book and it will inspire you to come up with many business ideas while you’re reading along these examples.
  • The membership website model
  • The all you can eat library model
  • The private club model
  • The front of the line model
  • The consumable model
  • The surprise box model
  • The simplifier model
  • The network model
  • The peace of mind model
Part three of the book teach the new P&L and how to calculate and use the subscription business model and how to scale.
This book not only a great reading intro to subscription business but it also provides the tools to create your own business model, branding and marketing. A fantastic sequel to Subscribed by Tien Tzuo. Both of these two books are a must read!

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