Tracking Key Performance Indicators for Funeral Home Business Success

Introduction

As the funeral and cemetery services industry continues to grow and evolve, tracking key performance indicators (KPIs) is becoming increasingly important to the success of funeral home business. Knowing what metrics to measure and how to track and calculate them is key to understanding if the business is performing optimally or if areas for improvement are needed. The top seven metrics to track the success of any funeral home business include average service cost metrics, customer satisfaction levels, staff engagement, cemetery sales, pre-snatch service revenue, timely completion of services and growth in market share.

Average cost of service metrics measure the overall cost of the services provided. It is important to establish benchmarks and measure any increases or decreases in costs over time. Customer satisfaction levels measure the overall level of customer satisfaction with funeral home services. Staff engagement measures the levels of engagement and satisfaction of staff members. Cemetery sales measure the overall success of cemetery sales, while pre-arrangement service revenue measures the funeral home’s revenue from prepayment for funeral services. On-time services measures the percentage of services completed on time, and market share growth measures gains or losses in market share over a period of time.

Tracking and calculating these KPIs can help funeral companies identify important trends and insights needed for success. In this article, we’ll discuss the top seven funeral home business KPIs, how to track and calculate them, and how to use them to your advantage.

Average service cost metrics

Definition

Average cost of service metrics are a key performance indicator (KPI) that measures the average cost of services provided by a funeral home. This metric can be used to compare the efficiency of different services and track changes in the average cost of services over time.

Benefits of Tracking

Tracking average service cost metrics allows funeral homes to better understand their cost structure and the price of their services. This helps ensure that the funeral home charges competitive, profit-maximizing prices. Additionally, tracking this metric over time can help identify trends or changes in the average cost of services, which can be used to inform future pricing decisions.

Industry Benchmarks

The average cost of services provided by a funeral home can vary depending on the type of services offered and the region in which the funeral home is located. Generally speaking, industry benchmarks for average service cost metrics range from ,000 to ,000.

How to calculate

Average service cost metrics can be calculated by dividing the total service revenue by the total number of services provided. The formula for this metric is:

Calculation example

For example, if a funeral home had a total service revenue of ,000 and provided a total of 10 services, the average service cost measures would be calculated as follows:

Tips and tricks

• This metric should be tracked regularly to ensure the funeral home is charging competitive prices and maximizing profits.
• Benchmarking average service cost metrics against industry standards can help identify potential areas for improvement.
• Tracking changes in average service cost metrics over time can help identify any trends or changes in the average service cost.

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Customer satisfaction levels

Definition

Customer Satisfaction Levels (CSL) is an important KPI metric for funeral homes that measures overall customer satisfaction with the services provided. It is calculated by taking into account customer feedback on quality, speed, reliability, courtesy and other factors that influence customer experience.

Benefits of Tracking

Tracking customer satisfaction levels is essential for funeral homes because it provides insight into how the business is performing in terms of customer experience. Additionally, CSL tracking helps funeral homes identify areas for improvement, develop strategies to increase customer satisfaction, and measure the success of those strategies.

Industry Benchmarks

Customer satisfaction levels vary by industry, but a good benchmark for funeral homes is an average score of 7.5 or higher on a 10-point scale. This indicates that customers are generally satisfied with the services they receive and that the funeral home provides a quality experience.

How to calculate

Customer satisfaction levels are calculated using the following formula:

Calculation example

For example, if a funeral home served 100 customers and 80 of them were satisfied with the services provided, the CSL would be calculated as follows:

Tips and tricks

• Gather customer feedback through surveys and interviews to get an accurate picture of customer satisfaction levels.
• Regularly review customer feedback to identify areas where improvements can be made.
• Track CSL over time to measure the success of strategies implemented to increase customer satisfaction.

Staff commitment

Definition

Staff engagement is a key performance indicator (KPI) that measures the level of employee engagement in a funeral home. It is a measure of motivated, passionate and enthusiastic employees when it comes to work. It also assesses how closely they relate to the organization’s mission and values.

Benefits of Tracking

Tracking staff engagement helps funeral home businesses identify areas for improvement and plan strategies to increase engagement. Monitoring staff engagement can also help identify how employees feel about their jobs and the work environment, allowing managers to make changes or implement strategies to increase morale and performance. job satisfaction.

Industry Benchmarks

According to a Gallup study, the average staff engagement score is 33%. The highest engagement scores can be seen in organizations with strong leadership and a clear mission and vision. The lowest scores are observed in organizations where employees feel disconnected from their work and lack motivation.

How to calculate

The calculation of the staff commitment is as follows:

Calculation example

For example, if a funeral home has 10 employees and 8 of them are engaged, the staff engagement score would be:

Tips and tricks

• Encourage open communication between staff and management.
• Involve staff in decision-making processes.
• Make sure employees feel valued and appreciated for their work.
• Provide employees with opportunities to grow and grow.
• Recognize and reward staff for their achievements.
• Provide a supportive and positive work environment.

Cemetery sales

Definition

Cemetery sales is a key performance indicator (KPI) that measures the number of cemetery plots sold by a funeral home. This is an important metric to track because it reflects the success of the funeral home’s cemetery sales program, as well as its ability to attract customers.

Benefits of Tracking

Tracking cemetery sales can help funeral homes understand how well their cemetery sales program is performing. It can also be used to gauge the success of marketing and promotional activities, such as advertising and promotional discounts. Tracking cemetery sales can also provide information about customer preferences and the types of cemetery plots that are in demand.

Industry Benchmarks

The average number of cemetery plots sold by funeral homes is about 3,000 per year. However, this varies greatly depending on the size and location of the funeral home. Funeral homes in large cities may sell more than 5,000 cemetery plots per year, while those in small towns may sell fewer than 1,000.

How to calculate

Cemetery sales can be calculated by taking the total number of cemetery plots sold by a funeral home during a given time period and dividing it by the total number of cemetery plots available. The resulting figure is the percentage of cemetery plots sold at that time.

Calculation example

For example, if a funeral home has 1,000 cemetery plots and has sold 250 in a given period, the cemetery sale percentage would be 25%.

Tips and tricks

• It’s important to track cemetery sales over time to identify trends and measure performance.
• Comparing cemetery sales to industry benchmarks can help funeral homes determine how well their program is doing.
• Funeral homes should strive to increase their percentage of cemetery sales by offering promotional discounts or increasing their marketing efforts.
• It is important to follow customer preferences and the types of cemetery plots that are in demand.

Revenue from pre-pulling services

Definition

Pre-Arrangement Services Revenue is a KPI Metric funeral home business that measures the total revenue generated from pre-arranged funerals and other related services. This is an important metric to track because it helps identify potential areas for business improvement and gauge the success of sales and marketing efforts.

Benefits of Tracking

• It allows you to understand the potential for pre-pulling activity.
• It helps identify areas where sales efforts can be focused to increase revenue.
• It provides insight into customer preferences and helps adjust pre-arrangement offers accordingly.
• It helps identify any potential issues that could affect the success of the pre-pulling activity.

Industry Benchmarks

The industry benchmark for this KPI is typically set at 5-10% of the funeral home’s total revenue. Although this is a general guideline, different funeral homes may have different benchmarks depending on their unique business model and customer base.

How to calculate

The formula for calculating revenue from pre-stripping services is:

Calculation example

For example, if a funeral home earned a total of 0,000 in pre-snatch revenue and a total of ,000,000 in funeral home income, the revenue from pre-snatch services would be:

Tips and tricks to maximize the KPI

• Be sure to offer a wide variety of pre-arrangement services to meet different customer needs.
• Make sure pre-snatch services are well branded and promoted to reach potential customers.
• Encourage clients to pre-arrange funerals to maximize income potential.
• Provide incentives to customers who pre-arrange the funeral, such as discounts or special offers.

Timely completion of services

Definition

On Time Services (OTC) is a key performance indicator (KPI) that measures how often funeral homes complete services within the designated time frame. This metric is used as a measure of efficiency and can help identify potential bottlenecks in funeral home operations.

Benefits of Tracking

Tracking OTCs can be extremely beneficial for funeral homes. By measuring how often services are completed on time, funeral homes can identify areas where their operations need improvement. This can help funeral homes increase efficiency and reduce costs.

Moreover, tracking OTCs can also be beneficial for customers. By ensuring that funeral homes meet their timelines for their services, clients can be confident that their loved ones are cared for in a timely manner.

Industry Benchmarks

The industry benchmark for on-time completion of services is typically around 95%. This means that 95% of the services must be completed on time or within the designated time. Of course, this varies depending on the type of service provided.

How to calculate

The calculation of OTCs is relatively simple. To do this, you must first determine the total number of services completed within the designated time. Then divide that by the total number of services completed to get the percentage of services completed on time.

Calculation example

For example, let’s say a funeral home completed 10 services in a month and 8 of them were completed within the designated time frame. In this case, the OTCs would be calculated as follows:

Tips and tricks

• Be sure to follow OTCs on an ongoing basis to ensure your funeral home meets its service timelines.
• Analyze your data to identify areas where your services could be improved.
• Set achievable goals for OTCs and reward employees for achieving those goals.

Market share growth

Definition

Market share growth is a key performance indicator (KPI) used in the funeral home industry to measure the percentage of total market share a company has gained or lost over a certain period of time. This is an important metric to track as it reflects the success of the business in terms of revenue, profitability, and market position.

Benefits of Tracking

Tracking market share growth can provide valuable insight into the performance of the funeral home business. It can help identify areas that need improvement or are working well and could be developed. It can also provide an indication of the competitive landscape, allowing companies to adjust their strategies accordingly.

Industry Benchmarks

The industry benchmark for market share growth varies depending on the size of the company and the industry in which it operates. Typically, companies that are able to maintain steady growth in market share are considered successful, while those that are declining are considered struggling.

How to calculate

Calculation example

For example, if a funeral home business has a current market share of 25% and a prior market share of 20%, market share growth can be calculated as follows:

Tips and Tricks for KPIs

• Focus on the long-term trend of market share growth, rather than short-term fluctuations.
• Compare your market share growth with that of your competitors.
• Analyze the data to identify areas of opportunity and areas that need improvement.

Conclusion

Tracking and calculating key performance indicators can help funeral homes gain valuable insights into their business performance. Understand critical KPIs, such as average cost of service, customer satisfaction levels, staff engagement, cemetery sales, pre-pickup service revenue, service completion and growth market share, can help funeral home businesses better optimize operations and achieve goals. By leveraging these KPIs, funeral homes can identify areas for improvement and create more successful and profitable operations.

Using data-driven insights to inform business operations is an effective way to drive success and ensure all stakeholders are satisfied. Tracking and analyzing key performance indicators is an integral part of optimizing any business, and the funeral home industry is no exception. By understanding and leveraging the seven key KPIs for the funeral home, organizations can better understand their performance and make strategic, informed decisions that can help shape the future success of their business.