Who will be the “Disruptive Force” in Death Care?

 

 

About a month ago I read this article from Yahoo Finance titled, “Retail employees are working fewer hours.  Here’s why that is a risk to the economy”.  While the article was good and informative in its own right a portion near the end caught my eye and I related it to Death Care. . .and especially online Direct Cremations.

 

Here’s the quote that interested me, “While increased job cuts and elevated levels of executive turnover within the retail industry won’t likely spur cuts across the economy or an economic downturn, it does highlight a noteworthy trend. Unprecedented disruption driven by e-commerce and technology is widening the gap between winners and losers, a challenge playing out far beyond the retail sector.”  (Bold empahsis added by Funeral Director Daily)

 

My belief is that “if” unprecedented disruption by e-commerce is happening, then it is happening in “Death Care” right now and we just don’t realize it yet.  My guess is that if it is happening in Death Care with consumer choice, then the most likely place that it is happening is in online cremation services.

 

There’s plenty of players in that game. . .some have been there for some time, but does anybody have it right yet?  And, there is a lot at stake, because if you believe that the future of human disposition will be cremation by a wide-margin over earth burial, the company that becomes the national household name for cremation disposition will gain the market share and become the dominant national brand.

 

There is a process moving the Death Care consumer to comfortability with online cremation.  That process moves something like this:

  1. Getting comfortable with cremation over earth burial
  2. Getting comfortable making major purchases online . . .that includes pre-payment for future services
  3. Being comfortable with making Death Care disposition a transaction rather than an experience and/or Getting comfortable with planning Death Care memorial/celebration experiential events without the use of a funeral director

 

In my book, once a consumer gets through that checklist, I believe that online cremation purchases will move quickly to the forefront for many Death Care consumers.

 

However, an expert in the online world has told me that one of the hold-ups at this time is the reluctance of the consumer/purchaser to follow through with an “online” pre-payment of up to $3,000 or more for pre-arrangements.  And, even at the lowest costs, that’s about the minimum for a husband/wife package.  It somewhat proves to me that there still needs to be a little “prodding” by sales staffs to put pre-arrangements on the book.

 

Although upstart Direct Cremation provider Pure Cremation was able to figure it out in Great Britain as, according to this article, the company was able to sell 65,000 preneed policies in one year (2022). . . .albeit at only about $US 1,000 per policy.

 

In my opinion, here are some of the companies that are vying to be this “disruptive” force in North America.  (You can click on their name to go to their website.)

 

RelatedFormer SkipTheDishes CEO, Kevin Edwards, joins Eirene as new Chief Operating Officer

 

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  It is my opinion that America is now a “cremation country” and we will stay that way for the foreseeable future.  Yes, Natural Organic Reduction, Green Burials, and Alkaline Hydrolysis will join earth burial and be chosen for disposition more often than today, but we will remain a cremation nation.

 

And, I believe that we will also move to a less traditional mode of memorial services and/or celebrations.  Because of that consumers will more and more, over time, get comfortable with online arrangements.  That’s why there is so much at stake for these companies working to get to a critical mass for their services.

 

The other thought I have about this topic is that I believe the cremation provider that can get the Preneed side of the equation down right so that the consumer has confidence in putting money away ahead of time, will be the cremation provider that moves forward fastest.

 

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