The Automatic Customer by John Warrillow
As time goes by, so do the fads or trends about anything and everything. Businesses, especially, experience the influx and outflux of a variety of models or perceptions of people about various strategies to expand their ventures. However, one model has proven to stay with entrepreneurs for over centuries now, namely the Subscription Model known for its profit-generating capabilities and crushing competitors.
Have you ever wondered why companies or businesses offer a subscription to customers? Well, to begin with, the millennial generation seems to favor access to things instead of owning them. Moreover, customers today are not afraid to make online transactions and buy products that they think can fulfill their requirements. Not to forget, today data is the most valuable possession of any organization and subscription models are the best data collection tools.
In his book, The Automatic Customer, John Warrillow gives you a guide to building a subscription business that can fit in any possible industry. The read gives you an insight into generating recurring revenue, attracting customers to turn into subscribers, creating market subscription services, and setting up metrics to keep a track of progress made.
However, the basic highlight of the book revolved around 9 key ideas or subscription model types that can help your venture get better visibility and build profit whilst generating 4 to 5 times more sales than before.
1. Sell your expertise with the Membership Website Model.
Are you an entrepreneur who is very confident about the quality and expertise of your product? Well, if you are then John says that you should use the membership website model where you can keep the content or information accessible through a paid subscription. This model turns out extremely successful for ventures selling their expert services that are in demand, and people would readily pay for them. Another aspect of this model would be to keep the focus on business-to-business sales as customers are ready to pay hefty amounts for something that profits their venture too.
For instance, a contract selling website sells proficient advice and information about contracting a venture in return for a monthly fee of $89.
2. Content is best given with the All-You-Can-Eat Library Model.
Another model that focuses on delivering a variety of content and information to the customers is the all-you-can-eat library model. With this, people can gain infinite access to the content. Even though they cannot interact with such large content, the whole selling point lies in the idea of giving them access to an unlimited resource of information.
Taking an example of the ever-growing online music providers who make use of this model to sell their streaming services and engage customers. This model is even appropriate for organizations on a small scale who can build their quality library to sell.
3. Develop a customer community with the Private Club Model.
John introduces the idea of having customer loyalty by building a community of people who are consumers of your product or service. In this private club model, the company deals with its special and recurring customers with great care and the customer ends up benefitting from the services and goods of the company. Usually, the fees of these clubs are so high which allows customers to feel exclusive and have a good stature.
4. Offer Priority with Front-Of-The-line Model.
Many of you might have seen people with priority passes and subscriptions skipping the line or having a different set of people dealing with them. Well, this group of people is none other than the elite customers benefitting from a front-of-the-line model of subscription. In this model, the organization offers priority access to select customers who subscribe for it by paying extra money which can become a source of heavy profit.
This model works fine for customers who want to enjoy the finished service or product without having to go through much trouble. Companies often segregate their customers on the basis of packs or subscriptions they buy – the ones who bought the most expensive package get priority. Moreover, this model can be seen predominantly in every industry possible. However, a word of caution that the companies should not forget the services and care they need to give to basic customers as well in order to remain credible and afloat.
5. To promote goods online utilize the Consumables Model.
If your business requires selling and promoting goods on the web, then the consumables model of subscriptions is a must-try. Through this model, the company gives a subscription for its product to customers who need to buy it at regular intervals. For example, the Dollar Shave Club is a good example of this model. They deliver razor blades to their customers at home after receiving payment online.
6. Establish your e-commerce business with the Surprise Box Model.
Working on a similar foreground of selling goods online as in the consumables model, the surprise box model picks a particular theme and sends out products that are themed especially to engage customers with something they fascinate about. However, the biggest challenge with this model is to keep up with the demand and even finding the manufactures for the goods you want to sell if you don’t do in-house manufacturing of special theme products.
7. Keeping it simple with the Simplifier Model.
If your company is the one that aims to offer respite to your customers at the time of need, then such companies can apply the simplifier model with subscription services too. Services like providing a technician to the customer when needed, or any other service to help the customer with their routine tasks at home or work fall under this model. This model sometimes involves frequent contact between the company and its client in order to provide a timely service.
8. Bring together an inclusive customer base with the Network Model.
Unlike the private club model, the network model focuses on building a customer community that is inclusive in nature and each new subscription of the service benefits all the customers. In such a model, the marketers are the customers themselves as they promote the service they use amongst their own circle and gather more subscriptions. The big giant Whatsapp works in a similar way, by asking its users to convince people to join in order to communicate with each other for free. The only criteria to worry about is that the subscribers should be in the same area or the state of use, that is physically or virtually.
9. Ease things for your customers with the Peace-Of-Mind Model.
Similar to the simplifier model, the peace of mind model also aims to give respite to the customers. However, the customers might be unaware of the forthcoming situation that they might have to face. This model will thus work best when the services you provide including taking immense care of your customers by offering them peace of mind and not doing their regular tasks.
The only challenge with this model is that it needs to charge a bigger amount for the subscription than the money for doing the actual services. Hence, a well intuitive estimation of how frequently your customers might be needing your services is crucial.
The author also lays out some key points for the readers to come across. Subscriptions are predominant in the market is a fact that has been reiterated over and over throughout the book. Also, a new set of metrics is often required to track the progress made through subscriptions. Not to forget, you can always make use of tricks to persuade even the most reluctant of potential customers to subscribe to your offerings.
All in all, The Automatic Consumer throws light on the idea of making your business enjoyable and attractive for customers with an efficient subscription model. Companies of all scales can reap the benefits that subscriptions can offer. Now, all you need to do is to carry out your research, find what works best for you and continue using subscriptions to expand your business limitlessly by thinking unconventional.
