At American Siding & Window Systems, a manager calls the morning after to thank customers for their business and to tell them that the order is being processed. “We let them know that someone will be calling them from finance and from installation,” Pagano says. “We make sure they’re still onboard.” American Siding & Window reps also leave behind a brochure that compares the company’s strengths and its product with those of competitors.
Many companies want the issue of rescission addressed directly, before the rep leaves the house. That is, reps will explain that the company is investing time and money in processing the order and would like to know now if there are second thoughts. Asking customers directly can unearth objections that have yet to be voiced.
Establish Ownership Many cancellations occur because clients don’t know what they’re buying, only what they’re paying. When Don Rittenhouse became president of the nation’s second-largest Owens Corning Basement Finishing System franchise, operated as a division of TaylorMade Construction in Maryland, he was specifically charged with reducing an unacceptable rescission rate — 54% — on a product averaging $38,000.
“One issue was communication,” Rittenhouse says. He immediately arranged that all cancellation calls come directly to him. “What I started to hear [from canceling customers],” he says, “was a complete misunderstanding of price expectations.”
So, beginning this year, he made two changes to the sales procedure. First, at an appropriate time and based on a preliminary design, clients, not reps, calculate the price of the finished basement. “If the customer builds the price and understands it, you’ve removed a major hurdle,” Rittenhouse says.
Second, the clients are also the people who fill out the first two pages of the contract. “If the customer is asked to fill out the paperwork and complies, you know there should be enough ownership and commitment to survive the three days,” he says.
Does the new process take more time? Yes. But having clients involved on that level means they know exactly what they’re buying and what they’re paying for. Rittenhouse says these measures helped reduce cancellations to the current level of 18%.
