Plans continue to contribute to FDs’ market share, says Golden Charter
Golden Charter said the research suggests that funeral directors that have sold around one funeral plan a week for the last 10 years will have delivered funerals associated with those plans worth as much as £1.35m
The financial returns on consistent funeral plan sales can contribute substantially to a funeral director’s market share as well as annual turnover, according to new research by Golden Charter.
The funeral planning business analysed data from nearly 25,000 of its funeral plan sales and maturity values to illustrate the long-term economic value of pre-paid funerals to independent funeral directors.
Golden Charter said the research suggests that funeral directors that have sold around one funeral plan a week for the last 10 years will have delivered funerals associated with those plans worth as much as £1.35m.
It said key to the data analysis is the fact that one in two funeral plans matures in less than five years.
The analysis also highlights the impact of small increases in pre-need sales. For example, a funeral director selling 20 plans per year over 10 years will have delivered over £500k worth of funerals; yet just 10 more plans a year over the same timeframe equates to 50% higher returns.
It also identifies the cumulative returns of funeral plans. Over a decade, funeral directors receive between three and four times more revenue in the second half of a 10-year period compared with the first.
Suzanne Grahame, CEO of Golden Charter, said: “The primary and most important benefit of a funeral plan is peace of mind for the customer and that is always the main focus of funeral directors. However, understanding the financial benefits of plan sales has never been easy. The fact that plans themselves mature over time and cover a range of services has always made it hard to articulate their true worth.
“This research will, for the first time, help funeral directors to better understand the potential value of their pre-paid sales pipeline in a simple way.”
She added: “Never before have we been able to articulate the financial value of modest but regular funeral plan sales. It is a fantastic way to protect your market share and all but guarantee a rising volume of funeral income as time progresses. For example, if you sell one plan a week, while you’ll have delivered around £250,000 worth of funerals after five years, you’ll go on to deliver over £1m worth in the second half of the decade.”
