Companies in the Service Industry that offer and sell intangibles are appreciating the need to monitor and evaluate how we use their services after paying for them because it is only when we experience the value from using it that we will buy more. Long ago, their counterparts in the manufacturing, and most tangible sector, discovered that they would sell more when their products were used and not kept on the shelf. Otherwise, their warehouses will be filled with finished goods.

So how do service providers get us to use their services and return for more? let's take the example of the insurance services which commonly last a whole year for short term insurances like auto and householders. Knowing that the value of any service is in the experience the customer has in the usage, it can be very challenging to state how to use auto insurance especially when there is no loss or accident.

The best way to understand how to use any service paid for would be found in our answer to the "why" question.

Generally, insurance is bought to secure a position of indemnity in the event of a loss or damage. Does this mean that where no loss or damage occurs, the buyer cannot be said to have USED it? May be. And there lies the challenge for insurance salespeople. A smarter understanding of what we use however wrest in the peace of mind we enjoy driving our cars around certain that if any loss or damage occurs, we will be compensated by our insurer.

This helps define in clearer terms why insurance buyers that report genuine claims should not be denied or delayed payment of their claims because that is the moment we desire to use what we bought or paid for.

Unlike telcos that sell airtime which we buy and use through talking on the phone, insurance serrvices, as they say, are not bought but sold.

In today's social economy though where people check to see before they connect (that's why Facebook allows us to see who desires to connect with us), the insurance service providers have a huge challenge of selling if not for the enabling laws that people must adhere to.

Any service, like insurance, that people buy (pay for) and cannot use without much effort faces possible extinction or take over by more value-adding and friendlier service providers except they are sneaked into another acceptable package. But not so fast! Who pays the service provider?

Now, imagine that you visit your neighbourhood food court and discover that the price of your favourite meal has been marked up by 20 cents. The natural reaction is to ask "why the increase?" and if you hint that you might stop visiting, they would rather drop the cents meant for insurance and retain our patronage.

So insurance executives, begin to number your days as the online marketplace provides the greater challenge. Buying online allows us more room to choose and for any service bought (paid for) and difficult to use, the option will simply be NO!

The experience customers have from using your service or product becomes the greater reason you will keep selling. Thinking time for the insurance industry and any other business that usage is difficult and challenging for buyers.

See you at the other end of the value chain!