Should Funeral Homes Embrace Referral Programs or Lay Them to Rest

In the face of rapid industry changes, small independent funeral homes are grappling with significant challenges posed by lower-cost providers and technological innovations. To understand how these businesses are navigating the competitive landscape, I spoke with numerous funeral home professionals. One aspect that is often seen as low-hanging fruit in traditional retail or service businesses is having a referral program. Can a funeral provider have a referral program, which, in other industries, is a straightforward way to increase business with little to no investment? The answer is yes, potentially. However, given the sensitive nature of the industry, these programs must be implemented with great care and respect. Here, I share insights and recommendations from funeral home professionals on how they effectively leveraged referral programs.

The funeral industry is not immune to the disruptions seen in other sectors. Lower-cost providers are gaining traction by offering streamlined, digital-first services that appeal to price-conscious consumers. This has put pressure on traditional funeral homes to find innovative ways to maintain and grow their market share. In this context, referral programs can be a viable strategy to enhance visibility and trust within the community.

Having a referral program seems unlikely to succeed at face value for a funeral home, but some funeral professionals highlighted the effectiveness of referral programs in increasing their call rates and fostering brand loyalty. By encouraging satisfied families to share their positive experiences, funeral homes can attract new clients and reinforce their reputation for providing compassionate and professional care. The major caution given, though, was these programs must be executed with a delicate touch. Here are the key recommendations from funeral home professionals on how to design and implement a respectful and effective referral program. I am sure this is not a comprehensive list, as I interviewed a limited number of individuals, but it illustrates that it might be something to consider. It is one of the most effective low-cost methods within other industries to immediately increase business.

Firstly, a subtle and discreet approach is crucial. Funeral home directors emphasized the importance of framing the program in a way that highlights the support and value provided by the funeral home, rather than directly asking for referrals. Satisfaction surveys with an optional section for referrals were cited as an effective, non-intrusive method. This approach allows families to feel comfortable and respected during a difficult time, without feeling pressured to act on behalf of the funeral home.

Another recommendation was to focus on the value and support offered to families, positioning the referral program as a way to help other families during their difficult times. This approach shifts the narrative from a transactional request to one of community support and care. By emphasizing the compassionate nature of the referral process, funeral homes can create a more meaningful connection with the families they serve, ultimately fostering a stronger sense of trust and loyalty.

To avoid the appearance of a transactional relationship, funeral homes suggested using alternative incentives for referrals. Options such as making a donation to a charity in the deceased's name, offering additional services or support to the referring family, or providing community rewards were seen as tasteful and aligned with the values of the funeral home. These alternatives provide a way to acknowledge and appreciate the referral without compromising the integrity of the relationship with the family.

Several funeral homes have found success with aftercare programs that provide continued support to families after the funeral services. These programs often include grief counseling, follow-up calls, and resources for coping with loss. As part of these programs, families can be gently encouraged to share their positive experiences with others. This ongoing support not only helps families navigate their grief but also reinforces the compassionate care provided by the funeral home.

Encouraging families to provide testimonials or reviews about their experience was another common recommendation. These testimonials can be featured on the funeral home's website and social media, helping to build trust with potential clients who are researching funeral services. By showcasing the positive experiences of previous clients, funeral homes can effectively communicate the quality and care they provide, making it easier for new families to choose their services.

Funeral homes also emphasized the importance of community outreach programs that build long-term relationships rather than focusing solely on immediate referrals. Hosting grief support groups, participating in local events, and providing educational workshops on end-of-life planning were highlighted as effective ways to engage with the community and encourage organic referrals. By becoming an integral part of the community, funeral homes can establish themselves as trusted and reliable resources for end-of-life care.

When a family does refer another family, funeral home directors recommend sending a simple and sincere thank-you note expressing appreciation for their trust and support. This approach avoids the transactional nature of typical referral programs and reinforces the funeral home's commitment to compassion and care. A handwritten note or a personal phone call can go a long way in showing genuine gratitude and maintaining a strong relationship with the referring family.

One example of a respectful referral initiative is the "Support and Share Program." This program encourages families to share their positive experiences with the funeral home as a way to support others in the community. The focus is on the value of helping other families find compassionate and professional care during their time of need. After the services, a satisfaction survey with an optional section asking if the family would like to share their experience can be sent. Additionally, families can be invited to provide a testimonial or review that can be featured on the funeral home's website and social media.

Hosting regular community events and informational sessions where families can learn more about end-of-life planning and support services is another way to engage with the community. This not only helps educate the public but also strengthens the funeral home's presence and reputation in the community. During these events, funeral homes can highlight their services and the benefits of planning ahead, further establishing their role as a trusted community resource.

Implementing a referral program in the funeral industry is not without its challenges, but the potential benefits make it a worthwhile endeavor. Funeral home professionals agree that when done correctly, referral programs can significantly boost call rates and strengthen the funeral home's brand. The key is to approach the program with sensitivity and a focus on the value provided to families. By emphasizing the compassionate and supportive nature of the referral process, funeral homes can build trust and loyalty among their clients, ultimately securing their place in the competitive landscape.

As the funeral industry continues to evolve, it is crucial for small independent funeral homes to adapt and innovate. Referral programs, when implemented thoughtfully and respectfully, offer a powerful tool for achieving these goals. By following the recommendations of experienced funeral home professionals, small funeral homes can create effective referral programs that not only drive business growth but also reinforce their commitment to providing compassionate and professional care. This balanced approach ensures that funeral homes can thrive in a competitive market while maintaining the trust and respect of the families they serve.

In conclusion, the insights and recommendations from funeral home professionals provide a clear roadmap for implementing referral programs in a respectful and effective manner. By focusing on community support, offering alternative incentives, and engaging in ongoing outreach, funeral homes can create a network of loyal advocates who actively promote their services. This not only helps to boost call rates and strengthen the brand but also ensures that funeral homes remain trusted and respected pillars of their communities.

Moreover, the potential of referral programs extends beyond just business growth. They serve as a testament to the trust and satisfaction that families place in their funeral homes. The personal recommendations that come through these programs are often seen as endorsements of the quality and care that the funeral homes provide, making them a powerful tool in building and sustaining a positive reputation. By implementing these thoughtful strategies, funeral homes can navigate the challenges posed by the competitive landscape, ensuring they remain relevant and respected while providing invaluable support to the families they serve.

Dr. Ryan Lehto