What happens when the honeymoon is over?

A relationship has an interesting evolution. Usually two people have decided to make a commitment to each other at some level. Most of the focus during the beginning is on the positive qualities of the other. The honeymoon is that period of time following the start of a new relationship. The positives are accentuated, and the negatives are ignored to a large degree. What happens when the insurance honeymoon is over?

The honeymoon is great. It just doesn’t last. But why? Most people would agree the disenchantment of a relationship is usually the result of the lack of communication, or at least the lack of quality communication.

Insurance is at its best when it is a relationship business. Getting to know a prospective client during the initial phase of quoting and comparing policies is important if an insurance agent is serious about creating a long term business relationship.

Most insurance salespeople work to make sure they are doing everything possible to start that relationship off on the right foot; phone calls, emails, and “thank-you’s” galore.

If the insurance sale is made, the assumption is that both parties are satisfied, if not happy, to be together. So why do people decide to switch insurance to another company or another agency?

If you say it’s because of the need to save money, I will call BS.  Price is always a factor, regardless of what is being purchased. But in a service industry, like insurance cost alone is rarely the sole reason for switching insurance carriers.

A poor claims experience, the inability to get a question answered in a timely manner, or feeling like you are just a number when you call in to your agency will all lead people to “shop around.”

Price is what consumers lead with when shopping because, frankly that’s all they really know about their insurance. An insurance agent can build a great deal of trust by helping their client understand what the insurance company will and won’t do if they have a claim.

One of the biggest reasons a client becomes dissatisfied with their insurance company or agent is there is very little relevant communication after the initial purchase. The monthly insurance bill is a reminder that they still have a relationship, but that doesn’t really give them a warm, fuzzy feeling.

Like all relationships, communication is the critical component in building trust.

Insurance is a business where clients can feel taken for granted. People will feel good if they are getting a good price for their insurance, but in many cases, it’s just as important that they feel they are important to the insurance company or the agent that sold the policy.

If someone feels ignored or taken for granted, the price of the service will not be enough to maintain their loyalty.

Salespeople are guilty of having a short memory. They often are on to the next prospective client after the successful closing of the last sale.

Insurance is different than most other sales businesses in a very critical way; the policy renewal is an opportunity for the agent to re-sell their self and the insurance policy to their client.

I would say that in some ways the policy renewal period is more critical than the initial sale. You don’t just have to convince your client that your price is the cheapest; you have to convince them you are doing all you can to maintain the relationship.

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