Posted By Administration,
Wednesday, April 25, 2018
If we asked, “Do you know your community?” most of you would say, “Yes, I know the community I serve.” You know the demographics, you know the population, you know the general make up of it. Yes, you know your community.
But your own personal experiences shape your view of the communities you serve. If we encourage you to broaden your perspective, you’ll find resources and tools to help you look at your community from outside your personal experiences—perhaps shedding a new light and a providing a new vision.
If you are reading this post, you are not satisfied with a simple answer or benchmark and are ready to move beyond business as usual. Congratulations to you! You’re eager to position your business more strategically.
Find the Data
You have data that paints an overall picture of the market: disposition data, what motivates consumers, what they’re buying, etc. Understanding statistics is a good way to forecast your business’s future. Start with the data you collect at your funeral home. Train your directors and apprentices on the specific things that should be entered into your computer software. From this, you can tell where your deaths come from, the ZIP code, the average age, the race, the average cremation sales average—all with just a few requests through the software program.
Then there are trusted sources of information for our industry to get a big picture of the forces at work.
Be sure to visit your local public library. It can be a great resource for accessing and interpreting business data.
Apply the Data
Assume that you do nothing to expand or change services to cremation families over the next five years. Find the cremation rate of your state or province and your business. Compare those rates against the rate of cremation growth and your total calls. Think about your sales averages now and consider what they will look like projected in the coming years. Ensure your casketed burial sales are not subsidizing your cremation sales. The number of deaths is increasing but so is the cremation rate, both of which are projected to increase for the next 20+ years.
Initiate this exercise with your staff at the next staff meeting: Engage them in tracking a variety of your business transactions. Keep a record of each keepsake sold, each special request fulfilled, etcetera and log them in your software to help you build a better data set and transform your numbers into solid metrics. An added benefit to this training is your staff becoming more conscious of interactions and opportunities. Discuss the trends and experiences you all have regularly to learn from each other. New package opportunities may emerge. Trends and feedback may drive marketing language. Your people, employees, colleagues and families are your best champions through their own behavior and interactions.
As the cremation rate climbs, steadily, with an anticipated plateau north of 70%, metrics and statistics become increasingly important. Cremation customers want personalized experiences and therefore your service offerings will be transformed. Your revenue mix becomes more complex and margins shrink so every family served matters. Every option every time can be overwhelming, or it can be your core.
The number of deaths are increasing and will do so for the next 20+ years. The cremation percentage, and therefore numbers, will also increase. So now,
- What does this mean for your business?
- How will you define your business in a crowded cremation marketplace?
What's Your Blind Spot?
We all have them. Those unknowable unknowns that no book, report, or presentation will answer. We assert that your blind spot is understanding who your competition is and how much market share you hold. It is nearly impossible to quantify as businesses become more specialized and competition more fierce. Keep counting obituaries and tracking your nearby funeral homes and cremation societies. But be aware of other sources of competition. For instance, the statewide online service that offers direct cremation and provides solutions to boomers making arrangements out of state.
Business Planning with Data
After reviewing your data, you may find you need to grow. Look at the numbers again and determine how much you need to grow to remain profitable in your developing market. Then calculate whether that amount of growth is possible—and we’ll go ahead and tell you that yes, it is entirely doable! Let’s look at three main strategies for growth: acquisition, organic growth within your current market, and redefining your market.
“But we’ve been trying to grow for several years and so far it hasn’t worked!” you say? That means you’ve got to do something new. This blog post will ask you to do something a little different, to think a little bit outside of your norm, and help you understand why there is value in that. Let’s look at what this means financially. Look at your data and look at your goal in terms of sales revenue. Let’s say that 20% growth is 20 additional calls and $140,000 of additional revenue. Long-term, that’s $100,000 in profit and an additional $500,000 in business value. Imagine if you increased those figures. So, we ask you, “Is it worth it to look at things differently and to really understand the community?”
Strategy #1 • Acquisition
Whenever you look at growth the first strategy to explore is acquisition. It’s a good strategy. But depending on the amount of growth you want to see, it may not be feasible. What capital is needed to buy a new business and how long will it take to recoup? If your goal for growth is only an additional 20 calls, buying a new business is would be over the top. If you do have your sights set higher, we refer you to the expert consultants who work to evaluate businesses for sale and growth. This piece is about statistics, so we’ll move on.
Strategy #2 • Organic Growth
Achievement through organic growth, means getting more from the resources that you currently have. The easiest way is to start by asking consumers how they chose you, typically in your aftercare survey. For many of families, the choice is based on personal experience. They already know the funeral director or firm. This means you want to get your funeral directors active in the community to build that awareness so that when the worst happens, people will look to you for support. Some consumers are motivated simply by location and convenience. You can’t relocate, but you can look at ways to make your location more convenient. What can you do to bring people back into your funeral home on a more regular basis so it’s part of their lifestyle?
In both cases, you want to take a look at your Aftercare and Outreach programs. Open your doors to the community to reach new sectors. Interact with them so they get to know your staff and build those relationships. Find ways to bring people into your funeral home at times that are not the emotional stress of a funeral, but throughout the year on an ongoing basis. Get people involved through social media and raise awareness of the funeral branch.
Your aftercare survey tells you about families you’ve already served and how to find more people like them—but for organic growth, you’ll need to look at the demographic data to understand your broader community.
A good place to start is evaluating your self-imposed service area. How did those boundaries get drawn? Your consumer doesn’t know that you’re constrained to a particular geographic area, so maybe you can push those borders a little further. Will your community drive a little farther for your services if you demonstrate the value they provide? Then take a look at pre-need. If you already have a program in place, look at the ages of your population. If 20% or more of the total population is 55 or older, you have what’s considered a “target-rich community” for pre-need. What can you do with your business and with your existing resources to capture additional calls through pre-need? Again, there is opportunity here.
Demographic Data Sources
There are so many data sources for demographic information that can serve as a great starting point.
Be sure to visit your local public library where they’ll have local and county reports on demographic data. It can be a great resource for accessing and interpreting demographic and business data.
Strategy #3 • Redefining Your Market
The third strategy is hardest to sell because it’s time- and effort-intensive. If you can do more with what you have, are you willing to go beyond what is traditionally considered your market and proactively look at the total market? Can you market your business as a funeral home for everyone in the community? Is there value in changing your marketing program? Look at the numbers and interpret what they’re really telling you.
Examine the growth of the minority sections of the community. The funeral home of the future will need to respond to all of the growing and developing cultures in the community. Even if you stay in your primary market area today, your market is changing. You need to start establishing new relationships in the community, changing your reputation so that you are the best funeral home for the entire community.
No matter where you are on the spectrum of cultural diversity, the more you reach out to understand and interact with the community, the more you can identify opportunities for growth. And this might not mean other ethnicities or religions. As CANA’s own demographic research pointed out, cultural shifts are occurring at every level and your old standby methods will not continue to serve us for long.
Putting a Plan into Action
It’s very easy for us to tell you how to do this. It’s easy to list these options and describe how they work in theory. But we know it’s not always so easy to implement these changes.
We also know that there are many resources out there. Go back to the start of this post and you’ll see recommendations for finding statistics reports and evaluating your situation. Look at your community. Evaluate your choices and envision the changes you might make. It may be scary to do this, but it’s even scarier not to.
Excerpted from The Cremationist, Vol 51, Issue 2: “Know Your Community: Build Your Business” as transcribed from CANA Board Members Archer Harmon and Erin Whitaker’s presentation at CANA’s 2015 Cremation Symposium titled “Meeting the Cremation Needs of a Growing and Diverse Population in North America.” Some of this post was originally written for “The Answer is in Your Numbers” by Barbara Kemmis and Bob Boetticher, Jr. and published in The Funeral Director’s Guide to Statistics, 2016 Ed. by Kates-Boylston.
Special thanks to Erin Whitaker for her Data Collection Tips, available as a free pdf.
Members can read the full article with specific examples of connecting with and meeting the needs of rising diverse populations in the community in Vol. 51, Issue 2 of The Cremationist. Not a member? Consider joining your business to access this and all archives of The Cremationist plus resources and statistics to help you find solutions for all aspects of your business -- only $470.
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Posted By Administration,
Wednesday, December 6, 2017
Updated: Wednesday, December 6, 2017
What do Canadians know that might benefit their colleagues across the border? In order to try and answer that question, The Cremationist contacted successful members from the three most populous provinces— Louis Savard (Quebec), Laurie Cole (Ontario), and Ryan McLane (British Columbia)—to ask them for their opinions on factors contributing to Canada’s higher cremation rate, how that rate has affected the way they do business, how they approach cremation and talk to cremation families, what their experience with direct cremation has been, and what advice they might give to a U.S. colleague.
Market Director for Quebec, Service Corporation International
The impact of rising cremation rates began for Canada in the 1980s and 90s. Since then, we’ve learned to live with the high rate. Because we’ve been experiencing high cremation rates since the 90s, it’s not a big deal for us. It’s just our day-to-day operation. We are living with it. Back then, it changed everything we did.
Celebrating the life of a loved one is the same. Cremation doesn’t mean people don’t want to make an investment. It’s not just disposal of the body and it doesn’t mean they don’t want to get together. There is the same need to celebrate the life of a loved one. Today, cremation and burial in Canada are the same. Visitation in Quebec is the same. Celebration and services, people meeting and talking together to celebrate the life of a loved one.
The cremation rate in the U.S. is going through what we went through 20-25 years ago. I work with an international company that serves the U.S. and Canada. The company only began adding catering services a few years ago in the U.S., but we started catering in Canada 20 years ago. It’s a big, big piece of the service we provide and adds a lot to our revenue. People sharing a glass of wine, being all together, having a eulogy at the same time as the reception.
We need to adapt ourselves to what people want, because we have to create all kinds of ways to have a life celebration. We need to have an open mind. If each life is unique, each celebration is unique. If you have an open mind, you can do everything, listening closely and carefully and working with the family to celebrate a unique life. You cannot be trained for that—you have to be a person who is creative, working with families and listening attentively to build that honor.
People want to celebrate life. The funeral home is not where they live, where they meet with their families, where they have fun. They want to celebrate a life where they are comfortable.
With cremation we can do whatever we want. Not so much with a burial.
President and Owner of Cole Funeral Services
Cremation has become a choice for many families, religious or not. It really is not a cost issue: people truly just want to choose cremation as part of the service instead of choosing traditional burial. With an onsite cemetery, we offer many options for memorialization for cremation burial. Some families do choose to keep the urn or scatter the cremated remains, but we also have a lot of heritage at Pinecrest, so many families do have the option of placing urns with family members who already rest at Pinecrest. That being said, even if there is no room in a family plot, families may still choose to purchase land for the urn burial based on the heritage affiliation as well.
With cremation, families can also focus on more details and options for the service. They have more time to plan the event with us rather than with the more “traditional” type of service. They can turn their attention to items such as linen color, personalization of the photos, stationery, food and alcohol selections, and creating their own floral arrangements or music playlists and the like. A cremation family may choose a simple container or casket, but they tend to focus on the urn and possibly an urn vault. They don’t see the value in an ornate casket, but may find value with the urn, jewelry, an urn vault for mementos, the memorial cards, or the land/monument or niche.
When a family says, “We just want cremation,” as service providers, we should not assume this means direct cremation. It oftentimes means that they want cremation and not traditional burial, but they still want some sort of gathering with food and beverages, a service, and a viewing to honor their loved one. Yes, 80% of our families choose cremation. But of that 80%, only 10% request a true direct cremation—and I always share that fact with colleagues in the industry.
My advice is to communicate all the choices to a family, regardless if they say, “We just want cremation.” We are doing a disservice to our families if we do not show them all the options available, for some simply may not be aware of their choices and may see value in them once they know about them.
Market Manager for Vancouver Island, Service Corporation International
I have been witnessing requests for direct cremation for 20 years now in British Columbia. I don’t think this is a U.S. phenomenon in any way. This direct cremation concept begins with an active increase in cremation requests as a whole.
The cremation rate has been considerable for a long time now in British Columbia. Over the years, many people have discussed the reasons for this and agreed that a number of important factors come into play. The most common suggestion is the nature of our transient society in British Columbia. We have had a very high rate of immigration over the years, as well as a very high mobility rate among people retiring to British Columbia from other parts of Canada. This leads to fewer people in their social network and less family around them. When a death occurs, cremation is viewed as a way to ensure that end of life is “not so complicated” or a way to “keep it simple.”
Funeral directors can never assume that they know what the family is thinking. The most difficult thing to overcome is the perception that the family wants nothing but a direct cremation. So many times the family doesn’t even know what they are asking for. Many request cremation and nothing else. But what does “nothing else” actually mean to them? How can the funeral director be more involved? Families want to keep it simple. But what is your definition of simple?
I see a difference in the need for explanation to what is available to almost every cremation consumer. Many people who select cremation are not aware that they can still have a visitation, or still have a service and still have a cemetery plot. Once you start to explore the options with a family, they will want to create a personal service for their loved one. Many times this is independent of any mainstream religion, and oftentimes families have no affiliation with the local church.
Over the years, it has been evident that the cremation consumer is looking for value. That does not mean that the consumer is cheap but rather that they are focused on purchasing items or services that are meaningful to them. Personalization is very important, as well as efficiency. As time goes on, requests for embalming have been replaced with requests for catering. We’ve also had to adapt and create new traditions for the families that are not affiliated with organized religion and who want chapel services with or without viewings.
Funeral directors have to educate families. The cremation concept is not a new concept but people just don’t know realize all the options they can have for arrangements. Families need to make educated decisions with a funeral director. As traditions evolve, we as funeral professionals need to take the lead to educate and to continue to help create meaningful events for families to say goodbye to their loved ones.
This post has been excerpted from Vol. 53, No. 4 Issue of The Cremationist and edited for length. Members can read the full version and insights on cremation traditions around the world in the original issue.
The CANA network is one of the most powerful benefits of attending a CANA event and membership with the association. CANA provides the space where cremation professionals can share important conversations with people who get you and your business. Consider connecting with CANA and other industry experts at the 2018 Cremation Symposium for topics that inspire innovative thinking.
Not a member? Join your business to access this article and all archives of The Cremationist plus advice, tools, techniques, and statistics to help you understand how to increase your cremation success -- only $470.
Louis Savard, Service Corporation International’s Market Director for Quebec and Vice President of SCI Canada, entered funeral service in 1985. He was the National Sales Director for Atlas Casket and worked for three years at Lepine Cloutier Funeral Home as a sales manager in preneed before moving on to SCI in 1992, where he was involved in corporate development.
Laurie Cole, President and Owner of Cole Funeral Services and Secretary-Treasurer/Director of Operations for Pinecrest Remembrance Services, is a fourth-generation descendant of John Cole, founder of the original Pinecrest Remembrance Services, established in 1924. In addition to her tireless service to Ottawa through the Rotary Club of Ottawa Kanata Sunrise, a supporter of the Live/Work/Play program, she has also served on the Board of Directors of the Cremation Association of North America. A mother of two, Laurie is a country girl at heart and has even earned a college diploma as a veterinary technologist.
Ryan McLane is the current Market Manager for Vancouver Island with Service Corporation International. He has worked both in Vancouver and on Vancouver Island for over 20 years. He is also a Past President of the British Columbia Funeral Association.
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Posted By Bob Boetticher, Jr.,
Tuesday, July 18, 2017
Updated: Tuesday, July 18, 2017
CANA is well respected for a lot of things, but, hands down, one of the most valuable assets produced by the association is CANA's Annual Cremation Statistic Report. For the past five years, I’ve been privileged to work as a member of CANA’s statistics committee, and I’ve always seen it as an amazingly powerful tool for analyzing current and future consumer trends and creating a strategy for building and growing my business.
I'm particularly excited about this year's statistics report. In addition to the usual numbers, the report addresses why cremation has grown at such disparate rates in various regions of the U.S. It examines the influence geography has on the percentage of the population that cremates, constructing a model to describe the growth patterns in detail.
CANA also examines the speed at which cremation rates rise, tracking how the velocity of growth speeds and slows as the numbers climb. Here’s some of what they found:
When the cremation growth rate over time is measured, an interesting pattern develops. It can take decades for the cremation rate to hit 5%—in the U.S. it took nearly 100 years from the legalization of cremation in 1876 for the rate to reach 5% in 1972 —but once it reaches 5%, the growth rate is more predictable.
Once you hit 5%, the cremation growth rate speeds up. CANA lays out a statistical model to describe a particular pattern in the rate of growth, beginning with the "Starting Point" of 5% and ending with a "Plateau Period," once an 80% cremation rate is attained.
The good news here—the BIG takeaway—is that we’re entering a period of great stability as far as business planning.
In other words, when cremation reaches 40% growth, you know that things will be moving really fast. This is the prime time to execute forcefully and decisively so as to diminish any disruption to your business. Knowing what lies ahead, you can avoid the panic or knee-jerk reactions that killed the businesses of so many death care providers in the geographic regions that have already experienced the rapid growth phase.
The third research component models demographic traits that correlate strongly with cremation rates. You can apply this information directly to your business.
… people of all races, genders, and ages choose cremation.
Other demographic data demonstrate an interesting pattern with potential implications for your business.
Whether compelled by circumstance or eagerly searching for new opportunity, more and more of the U.S. population has chosen to roam across the country and around the world. Many have loosened their connections to their geographic origins and increased their exposure to new traditions. Conversely, there are significant portions of the population who are rooted to their hometowns and remain deeply connected to the traditions they grew up with.
CANA’s report found various traits associated with these "roaming" or "rooted" segments of the population:
Roaming — Higher Cremation Rate
Areas with a high concentration of small businesses and businesses owned by women, less religious affiliation or affiliation with religions other than Christianity, higher incomes, lower home ownership but higher home values, higher education levels achieved on average, more immigrants and populations that speak a language other than English in the home.
Rooted — Lower Cremation Rate
Areas with higher concentration of manufacturing businesses and output, high affiliation with Christianity, lower income, higher home ownership rates but lower home values, lower education rates achieved on average.
You can see how important it is to understand your community demographics. If you know which segments of the community you currently reach, you can hone your message even further. You can also find ways to increase your market share when you identify new segments to target.
Come out to see my statistics presentation at some point in the future. I’d love to show you how you can choose to be profitable. It’s empowering to know that you can use these facts, models, and numbers to make educated choices about how to lead your business.
Want to know more about the way statistics can help you? Join me for my presentation on Using Cremation Statistics to Enhance Business Success for Cemeteries and Funeral Homes at CANA’s upcoming 99th Annual Cremation Innovation in New York City, August 16-18, 2017. Register here to take advantage of this illuminating workshop.
Bob Boetticher, Jr., a Past President of CANA, is on the CANA Statistics Committee and presents CANA statistics across North America to show how anyone can transform their business with data. A second-generation funeral director and a Market Director at Service Corporation International, he has over 30 years of industry experience. Bob is a funeral, cemetery, and cremation expert who is dedicated to improving the funeral profession.
For more information, take a look at CANA's Industry Statistics brief. Members can access the full Annual Statistics Report and archives by logging in.
Not a member? Consider joining your business to access tools, techniques, statistics, and advice to help you understand how to grow the range of services and products you can offer, ensuring your business is a good fit for every member of your community – only $470!
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