Thursday, September 9th, 2010

Cover Feature: Looking for solutions to your cremation challenges? Turn to Options® by Batesville.

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There is little doubt that cremation poses a major challenge to the funeral industry. At the same time, it is clear that cremation has become – and will continue to be – the preference of many families in the US and Canada. The reasons for this shift are numerous, but the bottom line is that funeral directors must learn to better serve these cremation families.

When it comes to cremation, there are three main factors that impact profitability:

Lower average sale. Research shows that, on average, funeral homes recoup only $0.44 on the dollar when a family chooses cremation over burial.

Increasing cremation rate. Compounding this cost differential is the fact that cremation rates are on the rise across North America. Some states have seen growth as high as 24% in the past year.

Inadequate product knowledge. Many funeral professionals struggle to effectively present cremation families with all of the options. In fact, recent surveys show that very few consumers are even aware of the variety of cremation products and services available to them.

With all of these factors at work, it’s no wonder funeral homes are struggling to achieve “revenue parity” between cremation and burial.

How can OPTIONS help funeral directors improve their cremation business?

Options® by Batesville is a different kind of company. More than just another provider of cremation products, Options strives to help funeral homes face the cremation challenge head-on. Since 1993, we’ve been dedicated to helping customers maximize revenue and profitability in their cremation business by offering solutions that empower firms to serve cremation families effectively and profitably.

Our cremation solutions provide the tools to reduce direct cremations, increase average cremation sales and leverage new revenue streams – helping funeral homes not only survive, but thrive.

How can funeral directors reduce the number of direct cremations?

It all starts with service. When a cremation family chooses direct cremation, we all lose. From an emotional perspective, experts tell us that a service is critical to helping the family begin to cope with the death of their loved one. On the business side, having a service equates to a higher merchandise sale.

That’s why we created G.R.A.S.P. – our advanced arranger training program. Developed based on the best practices of more than 500 of the most successful funeral homes in the US and Canada, G.R.A.S.P. provides a road map to a successful arrangement conference. The principles of G.R.A.S.P. are:

Gain trust

There’s no doubt that families are more likely to buy from someone they trust.  But more often than not, funeral directors don’t even know the families who walk through their doors.  Participants in our study stressed that the first few minutes of any arrangement should be spent simply making the family feel welcome, offering them something to drink and providing a tour of the facilities. These simple steps help families feel more at ease and receptive to the ideas presented in the arrangement conference.

Reflect on a life well lived

Participants said they typically spend significant time gathering information on the deceased. This conversation should go beyond the obvious biographical information, hobbies and associations – arrangers should strive to be personal and ask in-depth questions regarding the decedent’s life and relationships with those left behind. This allows the family to come to terms with the death and begin to understand how a service can honor the life of their loved one.

Assume a service

Top performing funeral directors always assume that cremation families want a memorial service. By conducting  the conference with a service in mind, you’re not put in the position of having to sell a service – instead you simply take the opportunity to build one. Believe it or not, many families don’t even realize they can have a service if they choose cremation. And if a family truly does not want a service, they will certainly tell you so.

Select containers

Cremation families should be encouraged to select at least two containers: one in which their loved one will rest prior to the cremation and one in which the cremated remains will be returned to them. It’s important that containers be presented as a decision for the family to make. Even if you offer a direct cremation “package,” you shouldn’t assume that families will select the minimum containers. The key is to present your families with choices and let them decide.

Personalize and memorialize

This is where it all comes together – through products and service elements that make the experience as personal as it can be. Consumer surveys show that families are very likely to purchase memorial jewelry and other value-added merchandise – IF they are made aware of these items during the arrangement conference. Don’t hesitate to show families ways in which they can honor their loved one through personalization and permanent mementos.

Complete G.R.A.S.P. training is delivered in two phases – an intensive one-day classroom session, followed by six weeks of on-the-job practice with homework assignments and weekly conference calls managed by Mentored While You Work, Inc. The principles of G.R.A.S.P. have far-reaching potential, if they are applied properly and consistently.

Upon completion of the training, I applied the techniques that were taught and experienced an immediate upgrade in our container selections and memorial services. We no longer sell minimum containers and crematory urns on every direct cremation. – John Stork, Graceland-Fairlawn FH, Decatur, IL

What are some ways funeral directors can increase their average cremation sale?

Many funeral directors treat cremation containers, urns and keepsakes as optional purchases. This attitude, and the way in which merchandise is presented to families, has a direct impact on a family’s purchase decision.

Options by Batesville has developed a simple, effective way to present cremation merchandise through our Personalized Packaging Program. This program allows funeral homes to create up to five cremation packages, customized to reflect the funeral home’s mix of product and service offerings. Customized support materials ensure that every family is presented with all of the options available to them, in a consistent and visually pleasing format.

This program simplifies the decision-making process and allows funeral directors to introduce services and merchandise at a variety of price points. More importantly, this approach has proven to drive higher average sales across all product categories by increasing the frequency of container, urn and keepsake purchases.

Nectar L. Ramirez, Options general manager, says, “A customer recently had a family who came in wanting a ‘simple, no hoopla’ cremation service. When presented with the packaged offerings, they ended up selecting a Visitation Service with hardboard container and full size Cloisonné urn, resulting in a total sale of $6,200.”

How can Options help funeral directors identify and leverage new revenue streams?

Cremation allows for a great deal of flexibility in products and services – perhaps more so than burial. This flexibility opens up the potential for new product categories – such as remembrance jewelry, keepsakes and garden memorials – that can be leveraged into new revenue streams.

Remembrance jewelry and keepsakes provide an excellent opportunity to create additional revenue. A recent consumer study showed that 60% of cremation families were unaware that remembrance jewelry was available, but 77% would have purchased had they known about these products! Jewelry and other keepsakes may be used with both burial and cremation families, allowing family members and friends to share a small portion of the cremated remains, petals from a floral arrangement or a bit of earth from the burial site.

Another example is the new series of Memorial Garden Rocks. These products serve as an alternative to a traditional marker for families who choose not to bury the cremated remains in a traditional cemetery. Used in conjunction with our unique, biodegradable Spiritree urn, these items also provide the opportunity to offer a special planting ceremony as an additional service the funeral home can provide.

Knowing the challenges funeral directors are facing today, Options has set out to be more than just another provider of cremation products. We have positioned ourselves to be a business partner, helping funeral directors maximize revenue and profitability. With our proven solutions, funeral directors can begin to view cremation not as a challenge, but rather as an opportunity to improve their business and enhance the satisfaction of the families they serve.

To learn more about G.R.A.S.P. training, our Personalized Packaging Program, maximizing additional revenue streams or any Options product, please call 1-800-444-5944.

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