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Editor's Note: Beginning in 2003, Matthews Cremation Division (MCD)
conducted an intensive consumer research study on all aspects of cremation.
Conducted by market strategy firm Competitive Resources, Inc., the study
focused on six major topics:
This article is the first in a series. Future articles will look at each of the remaining topics
When we looked at the process of arranging a cremation, we learned that
there are really three major "buying decisions" involved. The first is the
family's choice of cremation itself. The next is the selection of a provider.
Finally, there is the choice of which products and services will be used.
All three decisions have a profound impact on our business, so we looked at
each one in detail.
The Path of Least Resistance
As we talked about the
reasons for choosing cremation, the responses we received varied dramatically
from "a loved one's wishes" and "family tradition" to "financial necessity".
What surprised us during the discussion was the idea that cremation represented
"The path of least resistance". The choice of cremation offered no real
estate to buy, no monument to choose and no sales pitch to endure. Our
consumers described it as a one-step/one-stop transaction that keeps pace
with modern life. Through the eyes of the cremation advocate, cremation
represents the following attractions:
- The fewest major decisions
- No planning ahead
- Simplicity
- The luxury of time
The luxury of time was an important benefit because it removes the possibility
of making a hasty decision. Coping with the emotional loss of a family
member was challenging enough without the race for meeting a deadline. The
luxury of time provides family and friends the opportunity to rearrange
their schedules and control the cost associated with immediate travel.
Especially in today's society where families are scattered across the country,
having time to prepare is an attractive feature that if properly positioned,
can be a real asset for funeral homes to conduct services…..just later.
Resenting A Loved-one's Wishes
We also learned
that many of our consumers weren't happy when they were forced to follow
a loved-one's wishes for direct cremation. They talked about feeling empty
and even resentful when a loved one, especially a parent, dictated that
there is no service or ceremony. Some wanted a viewing, others wanted a
memorial, but it was clear that all of these consumers wanted more. Their
loved ones had forced them into a false economy, while these people were
telling us that the money was less important to them than having a proper
way to say 'goodbye'.
Choosing A Provider
The discussion of "who do you
choose" for cremation services provided some thought-provoking insight. Funeral
Homes remain a resounding choice because of their market visibility and the
all important 1st call for removal.
When the question was asked about cemeteries, there was no connection for
them handling cremation services. The typical response was "Cemeteries
DO that? Is this something new?"
With Cremation Societies, the word "society" carried a connotation of
extra good will. Even though almost none of our consumers had actually
used their services, consumers felt that a Cremation Society would be more
'non profit" and a "specialist" in the field of cremation. Without doubt
the name we use to define our cremation services has a strong influence in
people's perception.
The Internet - love it or hate it
The final option
we discussed was the use of the Internet. It was glaringly clear that the
attraction for the internet was influenced by their low expectations (and
even fears) about dealing with a traditional funeral home. The internet
offered some protection from what was perceived as a high pressure sales
environment where "they start with the deluxe model first and than work
down to the cardboard box." The promises of no pressure, no stress and
luxury of time were all big influences on the appeal of the internet.
One of the biggest surprises was that almost everyone, including the
Internet advocates, thought they would get more information by actually
coming into a showroom, where they could touch the merchandise and feel the
quality for themselves. It's just that some consumers were willing to
give up that extra information and support just to protect themselves from
what they feared would be a manipulative, high-pressure environment.
The opportunity here is clear: most consumers want to have their cake
and eat it, too. They want the personal touch of a funeral home and the
no pressure feel of the internet. It's a solution that can easily be
delivered by any funeral home - as long as it is approached with the right
mindset and merchandising tools.
The Arrangement Experience
The "buying experience"
is closely watched in every retail business and it became clear that it
should be no different for the funeral industry. Our discussions of the
arrangement experience quickly pointed to a number of missed opportunities
in the traditional approach to funeral arrangements.
We featured a merchandising setting that used familiar retail modules,
high resolution story board graphics, plenty of signage, clear pricing, broad
selection of products and fractional caskets. We had dozens of experienced
cremation consumers who had arranged cremations in every region of the country.
Surprisingly, we kept getting responses like, "I've never knew" or "I wish
I had seen this." These plainly represented a wasted opportunity by the
funeral homes that had served these families before, because many of our
consumers responded with surprise to such common offerings as keepsake urns
and columbarium installations. Either their funeral directors didn't present
these options, or the environment was so stressful that no one remembered them.
Either way, our industry loses.
Improving The Environment
The position of the
arranging environment strongly influenced the attitudes of the participants.
We consistently heard comments such as "This is nice, I don't feel like I'm
doing something terrible" or "When I'm here, I feel like I would make the
right choices" or "This is cheery and bright, very comfortable" Our consumers
noticed, and appreciated a more familiar, retail-type setting
We also learned that the arrangement setting can defuse the perception
of high pressure selling. Creating an environment where the merchandise
sells itself without the funeral director having to "pitch" was seen as an
important benefit. It also offered an important tools to compete with the
comfort and low-pressure benefits of the Internet
The freedom to browse on their own - the "No, thanks. I'm just looking"
shopping mentality - is common in every retail setting. It's also what our
consumers were looking for when they turned to the Internet. Offering that
freedom inside the funeral home would clearly be an important competitive
tool.
A Fresh Perspective
As we worked through this
research we quickly realized that there would be earning opportunities all
the way through the process. Through the attitudes of these consumers we
have developed a fresh perspective on out industry, and identified some
exciting new opportunities. It is these opportunities that we will enjoy
sharing over the course of the next few issues of AFD.
Steven Schaal is the Division Manager - Sales and Marketing for the
Matthews Cremation Division. He can be reached at sschaal@matw.com.
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"The Baby's Ugly" - Why Consumer Research Can Be Painful
"Are you willing to change?" This is the all-important question we had to
confront before beginning our research project. Talking with today's
consumer provides one of the most invigorating learning experiences around,
especially in a conservative industry like deathcare. You have to expect
the unexpected and prepare yourself for an array of unfiltered responses
that no matter how brutally honest will make you stronger in the end.
The key with any research is what you do with your discovery. Do you
burn the results because they don't match your beliefs? Do you reject the
consumer response because they "don't know what they're talking about; we're
the experts!" Do you question the accuracy of the research because "there
must be a hidden agenda?" Do you listen and learn from your findings and
positively respond to a potential challenge? We found ourselves faced with
these exact dilemmas when we initiated an extensive research project in 2003.
At Matthews, we felt we were gambling our clients' futures if we tried
to guess where consumers would find value. We also recognized that a lot
of funeral professionals were headed in the wrong direction on this question.
They had either grown weary of what they saw as "excessive" consumer demands,
or they wrongly assumed that "traditional" services would be appropriate
for their cremation families (one size fits all).
For the past 50 years, you could say that the Matthews Cremation Division
(MCD) has been at the center of the cremation business. We are the successor
of two premier manufacturers of crematory equipment - Industrial Equipment
& Engineering (IEE) and ALL Crematory (ALL) and one premier manufacturer
of cloth-covered cremation caskets, Elder-Davis. Even though we are
recognized as the industry leader in both categories, we knew that was no
guarantee of success.
Today's cremation consumers are demonstrating through their purchasing
habits (or lack thereof) that they don't find value in many funeral
products and services, and no business is completely safe. Across the
country we see statistics grow, read the annual reports about declining
profits, hear about shrinking service and casket sales, and hear the distant
cry of "peanuts!"
We have seen a lot of energy being spent looking for ways to stop this
tidal wave of cremation and alter the mind of consumer - the rallying cheer
of "Lets hold on to tradition!" What we sometimes fail to realize is for
some families, cremation is tradition. We have also seen a lot of funeral
professionals fall into the trap of thinking, "if we strengthen our cremation
services, even more families will choose it." Consumers are already choosing
cremation in droves, even in an environment where products and services are
kept hidden in the closet. Now the growth of new cremation providers is
proving the old business-school rule: if we don't give consumers the best
available solutions, someone else will. If the existing leaders in our
industry don't offer the best cremation products, services and merchandising,
then new competitors will take it away from us. You've heard the old saying,
"The first step towards recovery is to admit there's a problem"?
At MCD we took pains to make sure our research was thorough and complete.
We hired Competitive Resources Inc, an experienced independent research
company to manage the details. They recruited consumers from across the
country. They designed the questions, moderated the round-table discussions,
videotaped the sessions and provided the formal summaries. At MCD we were
handed the demanding task of staying out of the way and allowing the
research company the freedom to do their work.
We must admit it was challenging at times. It's like being a proud
parent and having groups of consumers tell you, "your baby is ugly." We
had to repeatedly promise the research company that we would refrain from
pursuing any participants after the session outside in the parking lot.
Ultimately the results were worth the pain. There were surprises, even
some unpleasant ones. But as they say, "everything that doesn't kill you
makes you stronger."
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