Cremation and Preneed Vs At-Need Does The Chasm Really Exist?
In our blind study (subjects did not know who was doing the research), preneed decision makers from across the country most of whom are also funeral directors or funeral home owners were asked to select which of the following statements best describes how they feel about preneed insurance:
- Preneed is an unimportant and unnecessary part of the funeral service business.
- Preneed is an unimportant yet unavoidable part of the funeral service business
- Preneed is an important part of business that helps make this funeral home successful
- None of these statements apply.
An overwhelming 81 percent of the respondents chose that final sentence.While It is true that the study participants are preneed of them are also funeral directors and/or owners.Where, then, does the perceived chasm exist?According to the findings the divide most likely resides with the longer-tenured funeral service professionals.Those who have worked at least 30 years are significantly more likely to feel preneed is “unimportant but unavoidable” and those 60 and older are significantly less likely to believe preneed is an “important part of the funeral home’s success.”Preneed professionals and at-need funeral directors are both dedicated to making the worst day of a person’s life a little easier.With this common goal the key is working together to ensure this happens 100 percent of the time.
Potential For Preneed Growth
Would you believe your best prospects for increased preneed sales exist at your funeral home?Out national study revealed that on average just over half (54 percent) of prearranged funerals on file at funeral homes are funded.Furthermore on average fewer than half of the funded pre-arrangement involve preneed insurance.The net result: on average 25 percent of all prearranged funerals are funded through insurance.The big story here is not the percentage of advance funeral plans that are funded by means other than insurance.Rather it is the fact that while preneed managers search high and low for increased sales, the best “leads” exist in the funeral home’s files.We have long advocated “working your files” and the research proves it is an important part of your preneed marketing strategy.Preneed activity can increase simply by contacting families with unfunded (or under-funded) pre-arrangement.There are two main benefits to this activity:
1. Funding with insurance offers protection against inflation; and
2. A funded plan is a stronger tie to your firm than an unfunded plan.
Identifying consumers interested in advance funeral planning is a tall order and an activity that should continue with vigor.The research suggests that a substantial target group of pre-arranges exists to discuss funding options.The latest data published for the industry by Wirthlin indicates the likelihood for consumers to prearrange in the next five years is expected to increase compared to 1999 figures.While preneed activity can rise merely as a result of the entire pie growing in size it could grow more significantly by capturing consumers who have already prearranged but not funded an advance funeral plan.
If you or a family member have any further questions or concerns with respect to cremation, cremation services, cremation costs or a direct cremation please feel free to contact Cremation Options toll free 24 hours daily at 1-877-989-9090.