Preneed Essential for Success

By Juhan Mixon, EdD

Executive Director

Final disposition trends have changed drastically in the last five years. The National Funeral Directors Association (NFDA) reports that cremation rates exceed 50%. The projection is that this rate will continue to increase exponentially over the next ten years.

Independent funeral homes need to keep up with this change. We should address the changing preferences of consumers who want 1) convenience, 2) lower costs, and 3) environmentally friendly options to traditional burials. Pre-need is one of your best options to address this projected increase in cremations. Consumers still want to memorialize their loved ones. Yet, their options are often not offered or explained. Thus, the customer often opts for the most inexpensive choice first. Be certain to explain memorialization options with cremation to families who prefer this over a traditional funeral.

What should you consider? Here are two simple steps to increase your bottom line as the cremation rates escalate.

1.      Maximize your pre-need program whether it is I-Trust or insurance. Develop package deals around cremation. Include flexible memorial services and earth-friendly options even with cremations; cardboard or bamboo caskets, biodegradable urns, mementos like bracelets, necklaces, and other jewelry. Add the options of mausoleums and niches. Green burials can be profitable!  Discuss with families that they can save with certain options to help foster trust.

2.     Data indicates that younger Americans are dependent upon, fully immersed in, and emotionally attached to their cell phones, computers, and accompanying apps. Following Covid, people are reliant on technology for entertainment, healthcare needs, shopping and social connections - the list is endless. Given this trend line, couple with advances in AI, funeral directors should actively pursue online preneed.

Using a program like eFuneral to engage younger preneed shoppers offers significant advantages and aligns with their digital-first shopping preferences. This generation values convenience, transparency, and accessibility, all which eFuneral provides through its online platform. By leveraging technology, it allows for a streamlined and user-friendly experience, making it easier for younger shoppers to explore options, compare prices, and make informed decisions at their own pace. This approach not only enhances customer satisfaction but also builds trust and long-term relationships with a demographic that is increasingly influential in the market. A program like eFuneral allows you to not only serve at-need consumers but is excellent in attracting pre-need families.

Contact the IFDF office for more information on eFuneral and other ways to enhance your preneed business.