FUNERAL SERVICE
                                                                                                Insider
  2 Funeral Service Insider

April 9, 2001

  Will the media's pre-need jeers sway consumers?
            Our  hunch:  Probably not.  Consumers will reach an opinion about pre-need on their own, regardless of negative press, says NFDA spokesman Kelly Smith.  "Consumers want the luxury of peace of mind," adds Quinn Eagan, owner of Preneed Funeral Program, Metairie, La.  Families aren't calculating if they'll get half of a percent better of a deal through your mortuary or a bank CD.  Many just want the reassurance that arrangements are just a phone call away once a death occurs, Eagan explains.

           Reality check:  Even if stories like this were to affect your business, you'll continue to get 20% of your business with no or minimal advertising expenses, Eagan adds.  One example:  Although, FD John McDonough, owner of McDonough Funeral Home (185 calls), Lowell, Mass., says he doesn't reach out to solicit pre-need, he continues to get pre-need customers every week.

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5 Funeral Service Insider

April 2, 2001

 
Use direct mail to boost pre-need
           Use direct mail even if you've got other tried-and-true advertising methods, suggest FD J. Clark Feiser, Feiser Funeral Home (132 calls), New Oxford, Pa.  (His pre-need rate: 60% for every 10 at-need calls.  Reminder:  Pre-need pros suggest you aim for a 60% rate or more if you're looking to grow market share.)   Even though he's done newspaper and radio ads in the past, he finds direct mail the most consistently effective way to get tangible results.

          The proof:  He sent out 2,000 direct mail pieces, got 40 responses, and ultimately signed 8 contracts from that.  Cost:  55 cents each.

          "He did great," remarks pre-need guru Quinn Eagan, Preneed Funeral Program, Metairie, La.  Reason:  Feiser had a low cost per lead.  In other words, he didn't have to spend a lot to sell 8 funeral contracts, each one worth a couple thousand dollars.  Eagan thinks cost per lead is a more important success barometer than a response rate or even a closure rate.

         Check out more direct mail tips:

  • Make follow up calls after you send your direct mail pieces, advises FD Michael Hurtt, West/Hurtt Funeral Home (164 calls), Desoto, Texas.  Upshot:  He's writing 7 pre-need contracts for every 10 at-need calls (70% pre-need rate).  Plus, the mail piece may put the idea of pre-need in their mind, but the telephone call will persuade 'em to sign with you.  He says his pre-need rep asks if the family saw the direct mail piece and if they'd like to come in and sign a contract.

         Caution:  Families in many East Coast markets aren't yet read for follow up calls because competition isn't as tough there just yet, Says Eagan.  However, the further West you go or the more competitive your market, all the more reason you need to make follow up calls.