How a Funeral Home Can Compete With a Direct Cremation Company

Are Direct Cremation companies are eating away at your marketshare? In this training, I give you a plan for turning the tables and taking on the discounter (and winning!).

The following transcript was generated by one AI tool and then cleaned up and summarized by ChatGPT

Hello, I’m John Callaghan, your Funeral Business Builder. This week, we’ll discuss how to compete with a direct cremation provider.

To understand this, let’s revisit the mind map I shared a few weeks ago, which divides the funeral business into two aspects: inside reality and outside perception. Inside reality refers to the actual services you provide, while outside perception is shaped by your marketing efforts. Today, we’ll focus on the latter.

In the realm of outside perception, you are crafting the image that potential families have of your funeral home. The first step is to outline your growth strategy. Define your vision for the future and select your target market. Identify where you aim to stand out and who your competitors are, including both direct and indirect ones. Previously, we discussed funeral homes as your direct competition. This time, we’ll delve into direct cremation providers.

It’s important to note that nearly all funeral homes offer cremation services. However, when we talk about competing with direct cremation providers, we’re referring to those who enter your market from different areas, offering cremations at significantly lower prices and winning clients.

So, how do you compete with them?

Often, potential clients focus solely on the question of cost because they don’t know what else to ask. They perceive funerals as commodities, assuming they can get the same service from multiple providers.

However, there are several other reasons why people might consider direct cremation providers. For instance, they might believe that no one will attend the funeral, or they plan to keep it simple and hold a ceremony later. Some may have a negative view of funeral homes due to past experiences.

To address this challenge, here are five tips:

1. Out-Market Them: Rather than engaging in a price war, focus on superior marketing strategies. Starting your own direct cremation company can be an option, but it’s often a defensive move and may not yield substantial profits.

2. Highlight Security Differences: Educate potential clients about the security risks associated with some direct cremation providers, emphasizing your secure procedures.

3. Offer an Express Cremation Package: Provide clients with the option for a 24-hour turnaround on cremations, which is challenging for many direct cremation providers to match.

4. Introduce a Family Viewing Package: Offer a package that includes the opportunity for immediate family members to view their loved one one last time without requiring embalming.

5. Educate About Body Donation Options: Inform clients about body donation as an alternative, even though it may not bring profits. This can divert inquiries from price-focused customers.

Bonus Tips:

• Website Information: Include comprehensive information on your website to guide potential clients beyond price inquiries. Encourage them to explore other considerations before making a decision.

• Always Over-Deliver: If you win a call from a price shopper, exceed their expectations. This not only converts them into future clients but also leaves a lasting positive impression.

Remember, how much isn’t the only question. It’s merely the one they know to ask.

Handle their query, guide the conversation, and help them recognize that there’s more to consider than just price. By following these strategies, you can effectively compete with direct cremation providers in your market.

I’m John Callaghan, and I’ll be back next week. Goodbye for now.

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