Funeral Services Industry Today Based on available data, there appears to have been little or no increase in US funeral industry revenues for 2015, still totaling $16 billion. A big reason may be the contraction in the number of funeral homes from 19,486 during 2014 to 19,391 during 2015. The share of privately owned funeral homes remains at 86%. According to the latest National Funeral Directors Association statistics, the average NFDA-member funeral home has 113 calls per year, with 3 full-time and 4 part-time employees. Rapid changes in American’s attitudes about funerals, including more cremations and green burials, as well as environmental concerns about the harmful substances that enter the biosphere from traditional burials, have challenged many funeral homes.

Transition from Tradition According to a 2015 consumer survey from the Funeral and Memorial Information Council (FAMIC), 87% of respondents older than 40 who had previously selected a funeral provider would choose the same provider. The study also found that young adults were more likely than older adults to create or attend online/virtual memorialization sites, obtain funeral service information via social media and use crowdsourcing to collect funds for funeral/memorial costs. In what has been a male-dominated industry, more women are expected to enter the business, as 57% of all mortuary school graduates were women during 2015.

Tracking Mortality Trends It may seem grisly, but the US death rate is vital information for funeral homes. Although the rate actually declined 2010–2012, a 2016 study from the Society of Actuaries found that the life expectancy for 65-year-olds is now six months shorter. Despite a focus on better nutrition, exercise and other healthier habits, obesity and the medical conditions it can cause – heart disease, diabetes, etc. – have recently increased among middle-aged Caucasian Americans. The study also found that when today’s Millennials retire at age 65, they will benefit from three more years of life expectancy compared to Baby Boomers. In addition, a wealthy 40-year-old man is likely to live 14 years longer than one with low income.

Cremations Become Top Choice As was predicted, 2015 was the year the percentage of cremations surpassed burials, 48.6% and 45.4%, respectively, with 2017 the year when cremations are expected to exceed half of all funerals, or 51.6%, and then increase to 71.1% by 2030. Cremation rates increased in 48 of the 50 states and the District of Columbia during 2015, with the highest rates in Western and Northeast states and strong growth in Midwestern and Southeastern states. Driving the trend toward more cremations is cost, environmental concerns and fewer religious prohibitions. According to the 2016 NFDA Cremation and Burial Report, 36.6% of families associate cremation with a memorial service.

The Demand for Green Burials The 2015 FAMIC study on page 1 revealed that although the awareness of the green funeral option hasn’t changed from 2010, remaining at 34%, interest has increased among adults 40+, to 64%, compared to 43% during 2010. One driver of the green burial movement is that soon there will simply be no land left for cemeteries and burials; but a stronger reason is that the hazardous chemicals and materials used in burials are transforming cemeteries into toxic-waste sites. According to the Green Burial Council’s January 2015 Green Burial Cemetery Survey of funeral homes, 72.4% said that the demand for green burials had increased, with only 20.7% indicating a decline in demand.

Advertising Strategies Because 72% of consumers said they considered only one funeral home when making pre-arrangements, it’s important to emphasize to potential funeral home TV advertisers that multiple flights will be required to generate and maintain brand awareness to drive inquiries. Convince funeral home advertisers that consumers want specific information, so TV spots (and all marketing) should be directing consumers to the home’s Website because that is where 60% of consumers search for funeral services information. TV spots should emphasize how the home will help people with pre-arrangement services to pay current instead of future rates and to relieve the burden on their children. Spots with sentimental language are not responsive to what motivate consumers.

New Media Strategies If your station has an obituary page on its Website, then funeral homes should have an ad there that, again, live links to their Website or shares a “factoid” from this Profiler about the importance of pre-arrangements and pricing statistics. Although young adults are unlikely to spend much time thinking about their funerals, homes can use social media to post surveys/polls that ask questions about young adults’ awareness of green burials, since they tend to be more environmentally conscious. With a growing interest in green burials, videos are excellent social media content: the process, cost comparisons, the environmental factors, a mock green burial and testimonials from families of green burials.