Local, Privately Owned and Less Costly

2. Local, Privately Owned and Less Costly • The growth of the US funeral services industry appears to be stagnant, as the same source on which the 2013 Funeral Services Profiler was based stated total revenues are still approximately $16 billion, although another source stated $20.7 billion. • According to the National Directory of Morticians Redbook, there were 19,486 funeral homes in the US during 2014; however, 86% are now reported as being privately owned, compared to 75% during 2013. • Service Corporation International (SCI), the largest US funeral provider, accounts for 12% of the industry. Reportedly, an SCI funeral costs 42% more than a similar funeral from an independently owned establishment.

3. A Preference for Cremations • Many in the funeral industry agree that the biggest threat to the traditional funeral is the rapid increase in the number of cremations. In fact, 2015 is the year the US cremation rate is forecast to surpass burials, at 48.2% and 45.8%, respectively. • The cost range for a traditional burial during 2014 was $6,000 to $26,000 while the Cremation Association of North America reported that the cost of a complete creation service was approximately $3,200, but a simple cremation could be as little as $600. • According to Mathews International’s Mpyre Crematoria Business Report, 2014 Edition, there were 84,356 cremations during 2014, with 51% of crematoria performing 250 or fewer cremations annually.

4. Market Makeover • According to 2014 research from the Funeral Services Foundation, fewer customers are choosing a traditional service, primarily because the mood is sterile and sad. The adults surveyed said they would prefer a celebratory service with dancing and laughter. • The Casket & Funeral Supply Association of America found in its annual casket survey that although 72.9% of funeral homes have full-casket showrooms, computerized displays, at 32.5%, are becoming popular because they are portable. • In its 2014 Funeral Directors and Flowers report, the Floral Marketing Research Fund recommended that florists create floral arrangements that are a manageable size, lightweight and easy to transport, since 83% of clients take them home.

5. The Pet Funeral Sector • According to Peternity’s calculations of American Pet Products Association data, approximately 11.6 million dogs and cats die every year, which generated more than $12 billion in revenues during 2014 for the pet memorial business. • Of those responding to the Pet Loss Professionals Association’s 2013 survey, 55% operated a funeral home, 23% operated a cemetery, 35% operated an onsite crematory, 3% offered hospice services and 47% operated a business with multiple services. • During 2012 and 2013, 99% of the pets seen by pet loss businesses were cremated and only 1% buried. The type of cremation has changed significantly as 93% were group and private cremations during 2013, compared to 72% during 2012.

6. Creating a Future for Funeral Homes • According to Funeral One, an industry consulting firm, there are more than 40,000 searches per month for the term, “funeral home.” Funeral homes Websites are more effective when they include obituary and social memorial sections. • Funeral homes are finding it advantageous to approach local companies and offering funeral assistance and pre-planning as another employee benefit. • Graceful Goodbye and FuneralFund are examples of new funeral crowdfunding Websites that allow individuals and families to solicit donations to help defray the high cost of a funeral or afford a burial instead of a lower-cost cremation.

7. Advertising Strategies • Because there are more funerals during winter months, due to increased sickness, propose a late December through mid-February schedule of spots for local funeral homes, with an emphasis on programming with the largest audiences, 50+. • Since seniors have the largest penetration rate of TV viewers and the senior population will include more Baby Boomers every year, recommend that funeral homes market cremations and natural funerals to grab a larger share of this huge current and future market. • Funeral homes that have introduced more digital technologies into their businesses, from digital displays of casket selections to obituary and social memorial sections on their Websites, can use TV to promote their 21st century services, compared to traditional homes.

8. Social Media Strategies • Because funerals are very personal and emotional occasions, funeral home owners will benefit greatly from writing and uploading a regular blog to their Website and shared through social media to help establish a trusting, personal relationship with consumers. • Funeral homes that are redesigned to be more open and bright than dark and confining and those using more digital technologies should use videos to share these changes with the social media audience, which should attract a larger share of the market. • Consumers prefer funeral homes Websites with an obituary section, which has proven to be a strong attraction for new customers, and a social memorial section, where family and friends can share stories and photos of their deceased loved ones.