how to persuade them to pay again?

Question

clients "buy" my "possible" services once a year, i.d. they pay in advance, no matter whether they will or won't need the services. the principal - something like medical insurance. when the year's over and the client didn't use the service, he says sometimes "thank you, I won't pay for the next year - I didn't need it last year". though it can suddenly happen to him that he really needs it! I don't want to frighten clients at negotiations (like "you don't know what happens to you next minute....") and don't want to offer discounts. how to persuade them to pay again and again and again?
p.s. the service really helps clients when they need it

Answer 1

I would suggest that you check www.aflac.com or do a search under comprehensive insurance.. there you can see how they work with their clients and their policies with supplemental insurance and maybe that will help you to deal with your clients.

and fyi.. if I didn't use a service.. i would want a discount too.. and aflac gives one :)

The more leinient you are.. the more clients you will get and the more word of mouth will spread thus getting you more clients.
Good Luck!

Answer 2

"Discount" or "rebate" on future purchases is the easy answer, and it's already been covered. Frankly, I don't like that idea for a variety of reasons.

One useful alternative is to add value to the service, so that the customers want it anyway, regardless if they make a claim or not. Of course, you need to find something additional you can do that will be low enough cost to you, but high enough perceived value to the customers, that they don't want to give it up.

(The math on that is easy - you measure the additional # of renewals you get at the full price).

There are lots of examples of this around, one example is AARP - people think it's a "seniors association" but really it's an overpriced insurance company... and the "association" is their angle to sell insurance.

It's a similar concept to a "loss leader" or "membership benefits" but if you do it right, it totally repositions your core product, and in effect bundles so much other stuff around it the customer can't really take apart the pieces.

Good luck,
Scott

Answer 3

Introduce additional services, if you can. Or a lesser version of the previous service, one that costs less but also delivers less. Since the guy didn't need it the first time.
Also, look to expand your clientele base.

Answer 4

What's your "service"? Even insurance offers discounts to people who don't use the servuce that often.