Posted by Mike Manley on Friday, November 18, 2011 at 12:34 pm Filed under Editorials, Solution on Management · Tagged with November/December 2011
Navigating Tumultuous Waters–Meet the Current Challenges of Funeral Service Head-On
The funeral home telephone rings and it’s a death call, typically the first step in the process that will unfold for you, your staff, and the family over the next several days. The family is entrusting their loved one to you because they believe that you and your staff have the experience, professionalism, and qualifications needed to carry out the funerary tasks and activities that will be required during the funeral process. This is what you are trained for – this is what your business exists for.
A decade ago you probably would have met with the family, collected the necessary personal data, and arranged for what was then “traditional” – probably one or two days of visiting hours at the funeral home, a religious service in their chapel or at a local church, and burial in the community or church cemetery. This was likely followed by a reception with many friends and family in attendance who contributed myriad trays, platters, and bowls of comfort food. Is this what your families are requesting today? In most parts of the country, this funeral scenario is a thing of the past.
In general, people’s values have changed and will continue to change, ties to traditions are being severed, and age-old customs and religious practices have become outdated and to some, irrelevant. Perhaps one of the areas most affected by these societal changes is funeral service. At the same time, the changes within our industry are compounded by the upheaval in the economy – an approximate 9.1% national unemployment rate, decreased personal and household incomes, job insecurity, eroding retirement funds, and growing debt. To funeral professionals, it’s not news that times have changed.
Cremation: Making “Efficient” Effective Anyone involved in any aspect of funeral service is aware that over the last two decades, the trend toward cremation has grown significantly, providing an increasingly more popular alternative to earth burial. Early on, cremation carried a negative connotation to many. Cremation equated to direct cremation – with no visitation, no funeral, no formal ceremony. Cremation has been considered to have eroded the traditional customs and rituals that have served society well for many generations. Cremation meant less direct contact with families, and it also translated to decreased revenues because families who chose cremation were spending far less than those who chose “traditional” burials.
Why has cremation become so prevalent? And why is it here to stay? First, historically, cremation has been perceived as a less expensive way to deal with the death of a loved one. Second, with the growing awareness of and concern for our ecological surroundings, cremation is viewed as a “greener” way to dispose of a loved one. Third, with the migration of retired senior citizens to certain areas of the country that offer milder winters and a more relaxed way of life, it no longer is common for extended families to live in the same geographic area. Given this mobility, when a death occurs today, there is typically not the same “coming together” of family members to commemorate the life of the deceased. Fourth, cremation is seen as a more “efficient” or expeditious way of handling a death. Finally, cremation is sometimes viewed as a way to alleviate some of the difficult and painful emotions that a “traditional” funeral with visitation and burial is perceived as bringing to the forefront.
There are myriad other factors that have worked together to result in the rising trend of cremation. Over the last few years, the economy has plummeted and in general, people have significantly less money to spend. Furthermore, as we consider those who are tending to the deaths of their parents, siblings, aunts, and uncles, and who are themselves approaching the age of death, the involvement of the Baby Boom generation (those born between 1946 and 1964) is most a common denominator. Although it is difficult to stereotype such a large group, Baby Boomers typically are known for their desire and capacity to redefine customs and traditions. This generation has grown up in a time of relative affluence and the vast majority were the first generation to think of themselves as a truly “special” generation. As such, their impact on society has been significant. Relating that to funeral service, Baby Boomers typically desire minimal involvement of a funeral director and have fewer ties to religious traditions. These traits are very different than those of previous generations.
So, how can funeral professionals address and embrace the perceived benefits of cremation? First, you must recognize that a family requesting a cremation does not necessarily want a “direct cremation.” As a funeral professional, you have the opportunity, expertise, resources, and even, perhaps the responsibility to educate your families and communicate all of the options for customized and meaningful services to them. Take steps and make a sweeping effort to learn how you can better serve these families. Options may include a personalized religious ceremony, a more secular memorial service presided over by a funeral celebrant, or a reception that incorporates a remembrance service. Memorialization jewelry and other merchandise are offerings that can be very meaningful to family members. Let your imagination take wing to develop expressive and eloquent ways to help families commemorate the death of their loved one.
Enhancing Your Revenues in a Down Economy The decreasing importance of traditional funeral rites, customs, and practices have led to parallel decreases in funeral expenditures, and many funeral directors find that while their call volume remains stable, their revenues are in decline. The changing values surrounding funeral service have combined with the current economic state of our country—i.e., high unemployment, decreased earnings, a higher cost of living, and less disposable income—to erode funeral expenditures, and thus, funeral revenues and cash flow. In many cases, there is less emphasis on the casket, or in the case of many cremations, there may be no purchase of any casket. The funeral home facility is being used less and less with the increasing trend toward services following direct cremations being held elsewhere, such as at a local restaurant, country club, or some other venue formerly used only for after-funeral receptions. The decrease in funeral processions to cemeteries has resulted in less frequent use of funeral home vehicles and limousines. These are just some examples of how the erosion of traditional funeral customs is affecting the demands on funeral professionals, as well as its impact on funeral revenues and cash flow.
One of your “new” roles as a funeral professional should be to enhance or expand your existing services to provide more meaningful and beneficial services to your families. There is a plethora of products and services available that should result in increased revenues and strengthened cash flow. By paying close attention to what others in the industry are doing, you can discover innovative products and personalized services that will fit in your community. You can start by educating your community about such issues as the sociological and psychological benefits of funerals, dealing with Social Security, aftercare and bereavement support programs, pre-need, and healthy living. Work with your vendors to become familiar with new choices and enhance your offerings of memorialization items that express the diverse tastes and values of your families. Provide personalization items for caskets and urns that reflect the life of the deceased. Offer a wide array of choices of register books, prayer cards, and video tributes. For those who have an affiliation with a church or for those who have no church, but desire a religious service, encourage your local clergy to be flexible and to adapt and personalize the service. Take the opportunity to become certified as a Funeral Celebrant, or have a staff member do so. Then, for those without a religious affiliation, you can offer the services of a funeral celebrant who can provide a fitting and meaningful tribute to the one who has died. These types of offerings, and many more, will provide for more wide-reaching services that will be more meaningful to your families while boosting your revenues and profitability.
The Pricing War: Positioning Yourself for Success In communities with multiple funeral homes, there is likely to be one firm that has the highest prices, one firm that has the lowest prices, and some number of firms that have prices in between. Decide where you want to be on the scale, but beware of trying to match the prices of your competitors just for the sake of being perceived as the least expensive funeral home in your market area. Do the math…just how many additional lower-priced calls must you do to make up the difference in your revenue? Is it too large a number to be feasible? Is it unrealistic given your market area? In a larger market where competition is aggressive and price shopping is a common occurrence, it may make sense to reduce your prices. However, in a smaller community, economically, it may not be so sensible. So, a thorough assessment should be carried out before making pricing changes. You may find that rather than trying to match your competitors’ prices, it may be more sensible to try instead to offer superior and unique services. If your prices are higher, be sure those higher prices are reflected in the quality of your services with the notion that “You get what you pay for…”
Marketing: Navigating the Internet Superhighway and Pounding the Pavement If you’re an over-50 funeral director, you are likely to remember the traditional modes of advertising that were considered essential for your business: Newspaper ads; Yellow-Page ads; church bulletins; calendars; Little League sponsorships; diner menus; bowling alley scoresheets…While some of these modes of advertising are still relevant in certain communities, they are increasingly being replaced by more technological advances involving the media and the internet. In order to stay relevant and marketable to the “techy” generations, funeral directors must become more computer-savvy and comfortable with the internet, the social media sites and other technical advances.
While your computer can be a vehicle for advertising, it also can enhance many other facets of your business. There are numerous computer software programs specifically designed for funeral business record-keeping which are intended to make your job easier, and typically they include superb customer support. While there may be a small learning curve, the efficiencies that can be gained are immeasurable. Additionally, online obituaries have become a familiar and sought-after resource, especially given the rising cost of obituaries in local newspapers. Online message boards and memorial books are modes by which the public can express their thoughts and sympathies to bereaved families. The “Light a Candle” option on your funeral home’s website is another vehicle by which people can express their condolences. Video tributes are increasingly requested, and whether you create them in-house or outsource them, they present an opportunity to provide a special and meaningful tribute to the deceased. This use of the internet can be a double-edged sword, however, in that some of these vehicles for the expression of sympathy also can serve to alleviate the “need” for the public to actually attend visitations and funerals to pay their respects and condolences. This presents a dilemma for you as the funeral director, who must strive to minimize the impact these services have on drawing people into your facility, and it comes back to what we have discussed previously in this article – namely, the importance of making your services so unique and personalized that the family and general public will reap psychological and emotional benefits from actually being in attendance for visitations and funerals.
Although the numbers are growing, a substantial number of funeral homes still do not have a website. An interactive, user-friendly, informative, and attractive website is critical in today’s society of internet shoppers. Several industry providers have perfected the pairing of technology with what shoppers look for specifically in funeral home websites, and they have some creative and exciting design capabilities. Your website should be very comprehensive, offering details such as the history of your firm, photos of your facility and staff, a description of their memberships and/or affiliations, and an explanation of the types of services you offer. In addition, details which showcase your vast experience and highlight your special offerings such as aftercare services, holiday or other commemorative services of remembrance, Social Security assistance, Pre-Need, Green Burials, and other ancillary services, and referral links to ancillary services such as florists and reception halls will portray you as a valuable resource in your community.
As valuable as an internet presence is to your funeral home, it should not be considered a substitute for some of the tried and true methods of advertising which show that you have a strong community presence. You and your staff should do all that you can to be known and well recognized in your community. Work together to find meaningful religious, secular, and community organizations and activities in which to participate.
Making New “Traditions” In an interview with the Religion & Ethics Newsweekly (May 4, 2001), Funeral Director, Author, and Poet Thomas Lynch said “The fashions have changed, but the fundamental obligation of a funeral to sort of bear witness to a death in the family and to initiate remembrance — that’s pretty much the same.”
Funeral directors are faced with this task over and over again when they are called upon by families to respond to the death of a loved one. While the traditions have changed and are likely to continue to change, the emotions surrounding loss and grief remain constant. It is up to those of you in funeral service to create new and meaningful ways to “bear witness to a death” and “initiate remembrance…” Use the tools that are available to you – continuing education courses, the offerings of vendors and suppliers, the advice of industry consultants, technology and the internet, and your creative energies to provide your families with creative, meaningful, and personalized services that will enable them to move through their grief process and ultimately to construct a new definition of life without their loved one. FBA
Melissa Drake is President/COO of American Funeral Consultants and has provided specialized consulting services to funeral professionals for over 20 years. Melissa graduated from SUNY New Paltz. She is a member of the Institute of Business Appraisers, presents CE programs, has authored articles and serves as an expert resource for various industry publications. She may be reached at 800.8326232, by e-mail at Melissa@teamafc.com or by visiting www.TeamAFC.com.
Kathy D. Williams, a graduate of SUNY, New Paltz and CFO of American Funeral Consultants has provided specialized consulting services to funeral professionals for over 40 years. She became Co-Owner of AFC in 2007, presents at Continuing Education Programs and contributes articles and serves as a resource for industry publications. She may be reached at 800.832.6232, by e-mail at Kathy@teamafc.com or by visiting www.TeamAFC.com.
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