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P R E N E E D
PERSPECTIVE
BY QUINN
EAGAN |
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THE
SHIFTING LANDSCAPE |
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Last year, when I was speaking at the National Funeral Director's
Association convention, I attended the main session at which Christine
Pepper, the organization's executive director, discussed the role of
tradition in the funeral industry. One main point: our product - the
casket - hasn't changed much in 40 years.
Now that's true, but it started me thinking about many
dramatic shifts in the industry that have occurred in my 26 years. For
example:
-Drastic increases in the cremation rate.
-Fewer people attending visitations and religious services, and fewer
people even visiting gravesites after the first year.
-Funerals - once routinely sched-uled over two days - now compressed into
a morning or afternoon.
-Shrinking profit margins for funeral homes. |
at a beach volleyball game,
with the pallbearers serving, and another conducted at the local yacht
club, where mourners fired the gun traditionally used to end races. There
have been candlelight visitations, balloon and dove releases - I even
heard of one family that released more than 100 butterflies at the
gravesite.
All of those wonderful funerals uniquely fit the deceased,
but realistically, most funeral directors won’t become event planners.
Most families won’t think up such ideas themselves. The challenge for us
is learning to provide unique experiences within current business
practice. Adapting is much smarter than fighting. I recently went back and
worked four funerals and was shocked that three were half-day visitations
with burial the same day. I don't know if it's families or funeral home
directors that are too busy, but |
In
my quarter-century, most funeral homes have raised prices significantly.
Those price increases (other than cost of living) came from two major
sources:
1. As conglomerates seized control of the industry, they
often paid enormous premiums while buying up funeral homes. Then they made
up the difference by raising prices.
2. When the FTC required homes to keep a goods and services
sheet, many rethought their pricing, seeking to create more profits at the
margins.
The end result is a lingering impression that funerals cost even
more than they actually do and consumers still spending thousands on
services they deem of low value.
How then do I propose handling competition from direct cremation?
Sell as many of the lingering traditional services as preneed services,
before cremation becomes the new tradition. At the same time, |
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The challenge for us is
learning to provide unique experiences within
current business practices. Adapting is much smarter than fighting. |
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All our
research indicates that many families want to avoid assembly-line funerals
and interpret “value” to mean “greater person-alization.” The industry has
responded with features such as memory drawers, cap panels, stick-on
corners, funeral motifs and all that good stuff. But as one speaker (from
the Harvard Business School, no less) at our annual preneed retreat
concluded after having worked with three groups of funeral directors from
around the country, those additions still focus on products, not
experiences.
Some progressive funeral direc-tors have begun making efforts
to improve the funeral experience for mourners, plunging into new roles as
event planners. I know of one funeral conducted courtside current
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changes don't bode well for
our business.
NEW DIRECTIONS
Cremation, for example, now represents a permanent sector of the
market. When I started out more than two decades ago, it was a non-entity
in the marketplace. Today, crema-tions now make up half of many funeral
homes' business, and in most cases, at least 25 percent of their call
volume.
Why did that happen? Do families actually prefer
incinerating deced-ents over burying them? Or does cremation provide an
alternative to something - conventional funerals - that have diminished in
value in those 20-odd years? Let's think about that for a few paragraphs.
start offering new cremation packaging |
options and services. I
mean, it should be obvious that the cremation industry is here to stay.
When I started out more than two decades ago, it was a non-factor. Don't
assume families want direct cremation, ask them about what package they
prefer. Begin to adapt your cremation packages/services (as well as your
traditional offerings), keeping in mind an aphorism a director named Frank
Stewart told me 15 years ago: Everyone wants to be remembered. No one
wants to be forgotten. When you discuss preneed offerings with a client,
help them choose services that will truly honor their memory.
Even if you feel content with your current offerings - that
the families in your customer base are completely satisfied - whoever gets
your business when you pass it on will |
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probably still want to
enhance its future value. More importantly, they will probably want to
offer endlessly improving services and increasing opportunities to an
expanding customer base. That's going to take some study and effort. I can
help a bit: I'm building a database of the best funerals. Readers should
e-mail me stories about the best funerals they've seen in the past five
years |
(What made them special? How could they
be duplicated?) at quinn@preneed.net and I'll bring them back to you in
another article. You're opinion of what made a good funeral, of course,
matters less than your customers'. It's ultimately their opinion that
counts.
The best funerals I've
attended - and the studies show are consistently regarded as best - are
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the ones where memories were shared
openly amongst all who were attending. Such funerals provide more than a
great tribute to the deceased; they provide a group healing process. It
provides the value that families want with a final goodbye. And that's a
concept easy to communicate when selling preneed funerals. Who doesn't
want to be remembered? |