In a perfect world, nobody who signed an agreement would change their mind, however, door-to-door sales reps do experience fall-out from time to time, and this post shares tips that you can use to reduce customer cancellation.
The one thing worse than zero sales is cancellations while selling door to door
It’s tough enough to go through the day without making any sales, but even worse than coming up empty-handed is having a sale that you worked so hard to make, cancel their agreement. Not only do you lose out on the commissions you thought you made, but you also can’t take back the time it took you to make that sale.
If you are a good sales rep it’s inevitable that you’ll sell somebody that changes their mind. If not, you’d just be selling the easy ones.
When you master the skills of selling door to door you certainly won’t be convincing people against their will to buy, but you might have people that are on the fence decide to buy from you. From time to time these people will end up going back and forth and end up cancelling.
Thus, if you aren’t getting any cancellations, it could mean you aren’t trying hard enough to close your potential customers. Conversely, if you are frequently getting cancellations, you’ll likely need to improve your solidifying the sales skills.
Generally 1 in 10 cancels is an acceptable cancellation rate. This proves that you aren’t just selling the easy ones, and also that you are selling solid accounts.
Time is Money in Door-to-Door sales
There are only so many hours in the day to make sales, therefore, wasting time is like throwing away money. When your sales cancel, not only do you lose out on time, but you also lose money.
Making sure that your sales are solid is a skill you will want to master if you plan on making a lot of money in door-to-door sales. When your customer cancellations start to get above 10 percent, you need to fix the problem.
When your cancellations crosses that 10 percent threshold that usually means you aren’t being upfront with your customers, your products or services aren’t being delivered in a timely manner, or you are selling in an area with high cancel rates.
Be upfront with your customers in door-to-door sales
The first step is to make sure your customers are fully informed about your products or services, and the expectations that go with them. You’ll want them to know about any contractual terms, early termination fees, product details, and/or guarantees.
If there is undisclosed information your customers find out about after the sale, that might cause them to cancel. This is actually worse than telling them the information up front. You want to have solid customers that ideally purchase for years and years to come. Hiding information from them is a quick way to lose a customer’s trust and hurt the reputation of you and the company you represent.
Although you may refer to your contract as a service agreement, if the customer asks if what they are signing is a contract, you’ll definitely want to tell them that it is. Never resort to unethical behavior even if you think it will increase your sales.
Have your products or service delivered in a timely manner
Another stumbling block that sales reps can run into, which can lead to cancellations, is not having your products or services delivered in a timely manner. This is an aspect you can’t always control, but you should do everything you can to have your products or services delivered or provided to your customer either the same day or next day.
The longer you push out delivery, the more likely your customer may cancel. When you get them excited about the benefits of your products or services, the quicker they receive them the better.
You can also include this as a stipulation to getting your discount or special offer. For example, you may say something like, “We do have to take care of installation either today or tomorrow, and that’s why I’m able to offer you the discount…” When your products are delivered quickly everyone wins.
Are you selling in a high cancel rate area
More than likely your company will know if you are selling in a high cancel rate area. If more sales reps than just you are experiencing a high level of fall-out, it could be from the area you are selling in.
Some causes of a high cancel rate could be you are marketing in a low-income neighborhood or areas that are highly transient, such as around military bases or near corporate headquarters of large corporations.
A high cancel rate area should be brought to the attention of your manager so in the future that area can be avoided. In most cases though, when you are up front with your customers and focus on timely delivery, your cancel rate should go down dramatically.
If you happen to be considering a new door-to-door sales opportunity you will certainly get the best training available as a part of the D2D Millionaire Team. Learn more about becoming a part of our team here!
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