9 signs a client relationship is in danger
If you're aware of the signs, you can take proactive steps before it's too late.
“Nothing lasts forever.” This is an expression my wife often uses. Personally, I want my favorite restaurants to stay in business forever. The pandemic taught me otherwise as several closed. Businesses change, clients change. Insurance professionals lose client relationships from time to time. But if you’re aware of the signs, you can take proactive steps before it’s too late.
How to tell when a client relationship is in trouble
You have several types of clients. Some are individuals, others are businesses. Each has signs that can reveal the relationship is not as good as it was.
1. Your long time contact at the business is no longer there. You had a great working relationship with your contact person. You got to know each other well. Suddenly they are gone. It could be for several reasons.
Proactive: Can you reach them? Find out where they went. If they are between jobs, do you know anyone who can help? When they land someplace, you have an ally in place. Meanwhile, get a face-to-face meeting with their replacement at the company.
2. Your client firm has a change of ownership. The firm has merged or been bought out. Your point of contact may (or may not) still be in place. The new owners may want to consolidate service providers with ones they are currently using or find newer, lower cost providers.
Proactive: You may be already well priced. Your business might grow. Does your firm know anything about the acquiring firm and where they get their insurance? What can your current internal contact tell you?
3. The client has put out a Request for Proposals. This implies they do not like something or are looking for a cheaper price.
Proactive: You want to compete to keep the business. You should have the advantage of client satisfaction. How can that be reflected in the proposal? Are there customer service or satisfaction survey numbers to back you up?
4. Your individual client does not return phone calls. It is difficult to interact when it feels like you are pushing on a string. Items need attention.
Proactive: Bear in mind there might be personal issues. It is not necessarily all about you. Try different channels of communication or scheduling a face-to-face meeting.
5. Your client will not take advice. This implies there is someone in the background discounting your suggestions. If you are able to maintain contact, you could update them on the performance of your suggestions, especially if there is still time to act.
Proactive: Can you draw them out and learn what has changed?
6. The spouse is hostile. Your connection might be the decision maker, but they are often not the only person in the relationship. No one likes to be ignored. They can make life very uncomfortable for the decision maker.
Proactive: An advisor who I first encountered in Texas would call the client when he knew the decision maker would not be home. He would suggest to the spouse: “We all need to meet. Maybe I am not the right advisor for you.” At the meeting, he focused more of the attention on the spouse, which showed them respect. He was completely knowledgeable about all their investments. He would wrap up by saying: “Decisions should be made based on information, not emotion. I will try to give you the best advice that I can.”
7. Your client starts complaining a lot. Things do not arrive in the mail exactly on time. There are small errors. Every call is a complaint.
Proactive: Something may have happened in their life where they feel powerless or have no control. They are taking it out on you. Try to meet with them and uncover the issue.
8. Fees suddenly become an issue. They complain about what they are being charged. They ask about fees before you are in the point of your presentation to address them.
Proactive: It is possible someone in the background is prospecting for the account, trying to make fees the issue. Ideally you can draw your client out to explain what change they are considering and do a comparison.
9. Your client has inserted an intermediary. This might happen with older people. A nephew or child is the new contact person. The intermediary might have inserted themselves in the role or they have been chosen.
Proactive: Try to meet with both parties. Are they taking on the responsibility for the outcome?
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