Unlocking Success: Essential KPIs for Funeral Homes

Welcome to the world of funeral homes, a business that holds a significant place in everyone's life. According to recent market research, the funeral services industry has grown by 3.6% in the last five years, generating $17 billion annually. Tracking and calculating the right KPIs can help these businesses understand their performance and improve their services.

• Number of funeral services provided per month: This is the most basic KPI that reflects the company's performance. A higher frequency of services indicates a higher revenue thus ultimately leading to growth.
• Average customer satisfaction rating: The satisfaction of the customer plays an important role in any business. Measuring this KPI helps understand how well the staff is performing and how they can cater more efficiently to the customers.

These are just a few of the several KPIs that are necessary to track and calculate to ensure the success of funeral homes. In this blog post, we will dive deeper into the other KPIs such as average revenue per funeral service, average time to complete legal paperwork and estate matters, number of grief counselling sessions per month, and much more. So, let's scroll down and learn how to improve the funeral home's performance!

Number of funeral services provided per month

Definition: The number of funeral services provided per month is a key performance indicator (KPI) that measures the total number of funerals a funeral home conducts within a month.

Use Case: Tracking the number of funeral services provided monthly can help funeral homes monitor their business growth and expenses. Knowing the number of funerals each month can help a business track revenue and forecast future performance, allowing for more informed data-driven decision-making.

How to Calculate KPI: To calculate the number of funeral services provided per month, take the total number of funerals conducted in a month and divide it by the number of days in the month. This will give you an average of the number of funeral services provided per day, which can then be multiplied by the number of days in a month.

Calculation Example: In the month of January, ABC Funeral Home conducted 45 funeral services. January had 31 days. Therefore, the number of funeral services provided per month would be calculated as follows:

KPI Advantages:

• Provides insight into business growth and revenue
• Allows for data-driven decision-making
• Helps funeral homes stay on track with goals and objectives

KPI Disadvantages:

• May not provide a complete picture of business performance
• Does not consider factors outside of the funeral home's control, such as community deaths

KPI Industry Benchmarks:

• The National Funeral Directors Association reported that the average number of funerals per funeral home per year was 113 in 2018. This equates to approximately 9-10 funerals per month, depending on the number of days in each month.

Average customer satisfaction rating

As funeral homes strive to provide exceptional service to their clients, measuring the average customer satisfaction rating KPI becomes critical.

Definition

The average customer satisfaction rating KPI measures how satisfied funeral home clients are with the services they’ve received. The KPI is measured using surveys or feedback forms, and the results can guide funeral home operators on areas they need to improve.

Use Case

In the funeral home industry, word-of-mouth advertising plays a vital role, making it imperative for business operators to provide high-quality service. The average customer satisfaction rating KPI helps measure how well a funeral home is doing in satisfying its clients, leading to repeat business and referrals.

How To Calculate KPI

Calculation Example

A funeral home conducted a survey, and 12 clients responded on a 5-point scale, with the following scores:

• 2
• 4
• 5
• 3
• 4
• 5
• 4
• 2
• 3
• 3
• 4
• 5

KPI Advantages

• It provides valuable insight into how satisfied funeral home clients are and can help identify areas to improve.
• It can Help Funeral home operators determine if their efforts are paying off and which areas require improvement.
• It is easy to understand and calculate.

KPI Disadvantages

• The KPI can be subjective when surveying clients, and results may vary based on clients’ mood, expectations, and demographics.
• Unhappy customers are more likely to provide feedback than satisfied customers, giving an incomplete picture of client satisfaction.
• Using a small sample size or selecting the wrong rating scale can lead to misrepresentative data.

KPI Industry Benchmarks

Funeral homes should strive to score above the industry benchmarks for the average customer satisfaction rating KPI. According to industry research, the average acceptable score should be above 80%.

Average Revenue per Funeral Service

As a funeral home owner or operator, tracking and analyzing your metrics is essential for improving the quality of your services, reducing expenses and increasing revenue. One important key performance indicator (KPI) that can help you achieve these objectives is the Average Revenue per Funeral Service.

Definition

The Average Revenue per Funeral Service is a KPI that represents the amount of revenue generated by your funeral home for every funeral service you perform. This metric helps you understand how much revenue you are generating from each service on average, and highlights areas you can improve as you continue to grow your business.

Use Case

The Average Revenue per Funeral Service is a crucial KPI for any funeral home business. By tracking this metric, you can gain insight into the performance of your business, and identify areas that need improvement. You can use this KPI to:

• Determine pricing and fee structures: By analyzing this metric, you can identify whether your pricing strategy is working effectively or not. If the average revenue you're generating per funeral service is not what you expect, you may need to adjust your pricing and fee structures.
• Improve operational efficiency: Analyzing your Average Revenue per Funeral Service can help you identify aspects of your operations that may be inefficient, and you can implement changes to streamline these processes.
• Maximize your revenue: Understanding your Average Revenue per Funeral Service can help you identify opportunities for growth and revenue optimization, allowing you to increase profits without compromising on quality.

How to Calculate KPI

The formula for calculating the Average Revenue per Funeral Service is relatively simple:

Calculation Example

Let's say that your funeral home generated $100,000 in revenue last quarter, providing services for 50 funerals. The Average Revenue per Funeral Service would be calculated as follows:

Therefore, your average revenue per funeral service for last quarter would be $2,000.

KPI Advantages

The Average Revenue per Funeral Service KPI provides several benefits to your business:

• It helps you make data-driven decisions for improving your business performance.
• It helps you identify areas of growth and maximize your revenue potential.
• It provides insights into price sensitivity and market demand.
• It motivates your team to achieve business objectives, helping you create a culture of excellence.

KPI Disadvantages

The Average Revenue per Funeral Service KPI is not without its limitations:

• It does not take into account the cost per service, which can impact your profitability.
• It does not provide insight into the quality of services provided.
• It is a snapshot of a particular period and may not provide a comprehensive picture of your business performance.

KPI Industry Benchmarks

Industry benchmarks for this KPI may vary depending on factors like your location, the type of services you offer, and market dynamics. However, according to industry sources, the average revenue per funeral service in the US is around $6,500.

Average Time to Complete Legal Paperwork and Estate Matters

As funeral homes are often involved in helping families with legal paperwork and estate matters related to the deceased, measuring the average time it takes to complete such tasks is crucial for improving efficiency and ensuring customer satisfaction.

Definition

The average time to complete legal paperwork and estate matters is a KPI that tracks the time taken by the funeral home to complete all the legal and estate-related formalities on behalf of the family.

Use Case

By tracking this KPI, funeral homes can identify bottlenecks in their paperwork processing and work towards improving the time taken to complete these tasks. A shorter turnaround time can lead to happier customers who are more likely to recommend the funeral home to family and friends.

How to Calculate KPI

The formula to calculate average time to complete legal paperwork and estate matters is:

Calculation Example

Suppose a funeral home completed legal paperwork and estate matters for 20 families during a month. The total time taken to complete all tasks was 80 hours. The average time taken to complete legal paperwork and estate matters for the month would be:

KPI Advantages

• Helps identify pain points in the paperwork processing workflow and improve efficiency
• Improves customer satisfaction by reducing turnaround time
• Allows funeral homes to set realistic timelines and expectations for customers

KPI Disadvantages

• Does not take into account the complexity of individual cases, which may impact the time taken to complete paperwork
• May not be representative of the overall quality of the funeral home's services

KPI Industry Benchmarks

Currently, there are no widely accepted industry benchmarks for the average time taken to complete legal paperwork and estate matters for funeral homes. However, by tracking this KPI internally, funeral homes can benchmark their own performance over time and work towards improving their processes for greater efficiency and customer satisfaction.

Number of grief counseling sessions provided per month

Funeral homes provide a wide range of services beyond traditional funeral arrangements and burials. One of the critical services that these homes offer after a loved one's passing is grief counseling. The Number of grief counseling sessions provided per month is a key performance indicator that measures a funeral home's monthly capacity to provide grief counseling services to the bereaved family members and friends of the deceased.

Definition

The Number of grief counseling sessions provided per month KPI measures the quantity of grief counseling services provided by a funeral home within a specific period, usually a month. As the bereavement process is challenging, offering such services helps to provide emotional support, guidance, and coping mechanisms necessary to help individuals deal with their loss healthily.

Use Case

The Number of grief counseling sessions provided per month KPI is a meaningful metric for funeral homes to measure their counseling capacity and meet the needs of those suffering from loss. By tracking this KPI, funeral homes can ensure that they have sufficient resources and staff to provide high-quality counseling services to their clients.

How To Calculate KPI

To calculate the Number of grief counseling sessions provided per month KPI, use the following formula:

Calculation Example

Let's consider that a funeral home runs a grief counseling program and provides counseling sessions to 100 families. To calculate the Number of grief counseling sessions provided per month KPI for this funeral home:

The result is 100, indicating that this funeral home has provided grief counseling services to 100 families within a month.

KPI Advantages

• The KPI helps funeral homes measure their grief counseling capacity.
• Funeral homes can provide support to families that are dealing with loss and grief in a meaningful way.
• A high Number of grief counseling sessions provided per month KPI can indicate high customer satisfaction, leading to word-of-mouth referrals and repeat business.

KPI Disadvantages

• The KPI does not indicate the quality of the counseling sessions provided by a funeral home.
• The KPI does not measure the impact of the counseling sessions on the bereaved family and friends.
• If the Number of grief counseling sessions provided per month KPI is low, it doesn't necessarily indicate that the funeral home is not providing adequate counseling services.

KPI Industry Benchmarks for the KPI: ' Number of grief counseling sessions provided per month '

Funeral Industry Benchmark suggests that the average number of grief counseling sessions provided per month ranges from 50 to 100.

Number of post-funeral receptions organized per month

As a funeral home owner, tracking and measuring your performance is of utmost importance. One of the most critical metrics for measuring the success of your business is the number of post-funeral receptions organized per month. In this chapter, we will discuss the definition, use case, how to calculate, advantages, disadvantages, and industry benchmarks for this KPI.

Definition

The number of post-funeral receptions organized per month is the total number of receptions held for families who have lost loved ones. These gatherings usually take place in a funeral home or a separate reception center and provide an opportunity for family and friends to gather and remember the life of the deceased.

Use Case

By tracking this KPI, funeral home owners can ensure a high level of service to their clients. It helps to identify trends in demand for post-funeral receptions and allows business owners to adjust their offerings accordingly. Additionally, this KPI can help identify areas of improvement for service quality, which can ultimately lead to increased customer satisfaction and referrals.

How to Calculate KPI

Calculation Example

KPI Advantages

• Helps to monitor business growth and service quality.
• Provides valuable feedback to improve customer satisfaction and experience.
• Identifies trends in demand for specific funeral services.

KPI Disadvantages

• May not accurately reflect the quality of services provided by the funeral home.
• Does not consider other factors that drive a customer's decision to choose a funeral home.
• Difficult to compare to industry benchmarks due to variations in the services provided by different funeral homes.

KPI Industry Benchmarks

The average number of post-funeral receptions organized per month varies greatly between funeral homes. However, industry benchmarks suggest that it is normal for a funeral home to organize between 5-15 receptions per month.

Percentage of repeat customers or referrals from satisfied customers

When measuring the success of a funeral home, one important KPI to track is the percentage of repeat customers or referrals from satisfied customers. This metric reflects the level of customer satisfaction with the services provided, as well as the likelihood of customers returning or recommending the funeral home to others. In this section, we will explore the definition, use case, calculation, advantages and disadvantages, and industry benchmarks for this KPI.

Definition

The percentage of repeat customers or referrals from satisfied customers measures the percentage of customers who have used the funeral home's services before or have been referred by a satisfied customer. It reflects the level of loyalty and satisfaction of the funeral home's customers.

Use Case

Tracking the percentage of repeat customers or referrals from satisfied customers can help funeral homes understand their customers' needs and preferences, improve their services, and retain loyal customers. Additionally, this metric can help funeral homes identify areas for improvement and strategies for growth.

How To Calculate KPI

The formula for calculating the percentage of repeat customers or referrals from satisfied customers is:

For example, if a funeral home had 50 repeat customers or referrals from satisfied customers out of a total of 100 customers, the calculation would be:

Calculation Example

Let's assume that the XYZ Funeral Home had a total of 200 customers in the past year, out of which 30 were repeat customers or referrals from satisfied customers. Using the formula above, we can calculate the percentage of repeat customers or referrals from satisfied customers:

KPI Advantages

• Reflects customer satisfaction and loyalty
• Helps funeral homes improve their services and retain customers
• Can help identify areas for improvement and growth potential

KPI Disadvantages

• May not reflect new customer acquisition and overall growth
• Does not provide insights into specific areas for improvement
• May be affected by external factors such as location and competition

KPI Industry Benchmarks

According to a survey by the National Funeral Directors Association (NFDA), the average funeral home in the United States had a customer satisfaction rate of 93% in 2019. Additionally, the NFDA reports that more than 60% of funeral home business comes from repeat customers or referrals from satisfied customers.