Third-party preneed marketers can help

you in the race for future business

counselors and the preneed marketing company itself.

Why Firms Hesitate

   A strategic partnership with a preneed marketing company has obvious advantages, but many firms hesitate.  Alan Creedy of TRUST 100/ Vanguard America understands this.  He explains:  "Most funeral homes have spent one, two or even three generations building their brand name-their reputation-and they're very cautious about protecting their solid name.  They must have complete confidence that [a preneed marketing] company won't create turbulence in the community."

   That is why preneed mar-keting companies take great pains in choosing and training counselors.  PFP looks for the "Disney World-type," says Quinn Eagan - energetic, whole-sale people.  Then PFP trains them thoroughly, spending "80 to 100 hours one on one."  The result is people who will represent the firm well and will stay with the business for many years.

   Cornerstone takes a similar approach.  As Steven White-head explains, "We recruit for character.  The essence of what we do is finding the right person with the proper value system."  Cornerstone looks for qualities such as resilience, drive, determination and quest for potential.  Often, the right people are those who left the corporate setting and want an environment where "C=C: 

contribution equals compen-sation."

   In the last 20 years, funeral service attracted many organi-zations out for a quick profit.  Most are now gone.  Says Creedy, "Seventy-five to 80 percent of the third-party marketers in the last 10 to 15 years are gone."  Those that remain have stood the test of time by bringing value to the firms they serve.

Finding the Right Product

   The test of time is equally important    for    the    insurance

company supplying preneed products.  A minimum "five-year history" is one of the key factors Cornerstone considers when securing a relationship with a product supplier.  Cornerstone also looks at ratings by A.M. Best, Standard & Poor's and others as well as financial depth and the company's long-term commit-ment to preneed.  This helps Cornerstone steer its firms clear of big trouble.  When insurance companies enter the business without adequate actuarial experience in this market or adequate commitment to pre-need, they may adjust their rates later and hurt the funeral firm.  "It's a matter of evolution.  An insurance company that doesn't have a solid past is very likely to have a rocky future," White head emphasizes.

A Healthy Supply Chain

   More than experience, an insurance company needs that elusive quality called "align-ment."  In a healthy supply chain, every element from manufacturer to producer must be aligned to bring value to the customer.  That is why Alan Creedy says the insurance company must focus on "helping the customer" rather than quick returns for the stockholders.

   Just as the insurance company needs to take a long-term view, so must the preneed marketing company and the preneed counselor.  When the consumer, the funeral home and the funeral director benefit, the preneed marketing company and counselor can benefit too.  For Quinn Eagan, "The most important thing is to grow the funeral home to do more business, with more highly satisfied customers in the firm's marketplace."

  Becoming part of healthy sup-ply chain is especially important for smaller independent firms.  Working with firms with annual volumes from 125 calls and up, Steven Whitehead feels that Cornerstone can offer an alternative to the highly sophisticated competition and  acquisition   techniques   of  the

consolidators.  "We fortify the independent funeral firm and make sure that our firms have their share of the business."

A Happy Home

   While preneed marketing companies can offer a turnkey program, they can also work alongside a firm's existing preneed program.  This works for Schoedinger Funeral Home, 1 2,500-call home in Columbus, Ohio.  Mike Schoedinger recalls his firm's first contract with Preneed Funeral Planning back in 1990 when PFP proposed using direct mail to activate his firm's preneed program.  "They put together a proposal with serious numbers-and no cost to us.  They proposed  a six-week trail.  IF they didn't live up to the numbers, they would pull out.  We had nothing to lose."

   The Schoedinger Funeral Home did accept the proposal.  After the six-week trail, Schoedinger recalls, "The program was a success; it exceeded all our expectations."  PFP proposed placing its own trained preneed counselors in the Schoedinger home to work alongside the firm's existing counselors.  At that time, Mike recalls, there were six to eight counselors, and the firm was hesitant to accept the proposal.  "We had every hesitation and everything in place for them to fail."  The firm agreed, however, and two new counselors appeared on site.  The results were dramatic.  "These two new guys came in and raised the bar.  They set new benchmarks," Schoedinger re-calls.  Best of all, "They brought everyone up with them."

     Schoedinger has high praise for PFP's trained counselors and for the company.  "Their predictions were the reality for us."  Moreover, because he can rely on the commitment and results, "We consider them a true partner."