Funeral services: a booming market entering the digital age

With almost 600,000 people passing away in France every year, many bereaved families are faced with the obligatory, albeit painful, step of using a funeral service. This fast-growing market is recording promising figures, not least thanks to its entry into the digital age.

Indeed, the digitalization of businesses, accelerated by the global pandemic, has enabled several market players to improve their services and better support families. But that's not all. The digital solutions that have emerged considerably facilitate the work of professionals, while improving relations between funeral operators and insurers.

How is the funeral services market faring in France? How has digitalization contributed to its expansion? Which players dominate the market? And what are the prospects for the years ahead? Find out in this article.

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The funeral services market in France: state of play 2021

Funeral services: what are we talking about?

The funeral services market is a sector linked to funerals generally organized at the request of families following the death of a person. The role of undertakers is to organize the funeral of the deceased.

These organizations offer comprehensive, personalized services :

• organization of the funeral,
• management of administrative formalities,
• funeral home management,
• sales of funeral articles,
• management of marble work,
• cemetery plot reservations.

They also act as intermediaries between relatives and the various service providers required for the funeral. These intermediaries may include :

• florists
• the marble mason
• the town hall
• the crematorium,
• place of worship,
• the local press.

👉 The aim is to reduce the strain on the deceased's loved ones who are in a period of mourning. To achieve this, funeral directors adapt to the different cultures and religious rites of each family.

Formerly managed by local authorities, the funeral market has been liberalized and opened to competition since 1993. Nevertheless, it remains highly regulated:

• In France, it is compulsory to use a funeral service following a death;
• companies operating in the market must be licensed;
• coffins and cremation must comply with a number of very specific rules;
• estimates are mandatory and must follow a standard model.

As a result, this organization revolves around 3 main specialties:

• Funeral services

  These involve organizing the funeral, transporting the body or providing the coffin or urn. This depends on the wishes of the deceased (cremation or burial).

• Marble services
  These include the creation of headstones and monuments. Flowers and cemetery expenses are also taken care of.

• Care of the deceased

  Conservation care is provided by professionals known as thanatopractors. Their aim is to ensure the preservation of the body and to present the deceased in the best possible condition.
  👉 60% of families use conservation care (according to PFG Funeral Services).

Key figures

• According to INSEE, there are almost 600,000 deaths per year in France. This figure is set to rise between now and 2050, as the population ages. The French market grew by an average of 3.03% between 2015 and 2020 (Businesscoot).
  
  
• Nevertheless, despite the growing and aging population, life expectancy is increasing, slowing the rate of increase in the mortality rate in France. The mortality rate has risen by 0.6 points over the last decade (JSE Blog).
  
  
• The funeral market in France is estimated at 2.5 billion euros. It has been growing for 15 years, with margins ranging from 8% to 20%. Indeed, the average price of a burial in France ranges from €3,000 to €5,000. This shows that the market offers excellent prospects and opportunities for its players (according to L'assurance obsèques.fr).

Latest trends and developments

• After growing by more than 3% a year since 2010, market sales are expected to increase by 3.5% a year by 2022 (Xerfi-Precepta study).
  
  
• This increase in activity should be accompanied by a rise in margins in the medium term, "despite the wage increases required to retain staff". By 2022, EBITDA will exceed 10% (Xerfi-Precepta study).
  
  
• In the medium term, the pace of growth in volume consumption of funeral services will accelerate, driven by demographic factors. INSEE estimates the number of deaths per year at 773,000 in 2019, compared with 531,000 in 2005.
  
  
• The market is becoming increasingly competitive, supported by the arrival of new entrants such as 100% digital platforms, low-cost concepts and undertaker networks developed by mutualist groups.

The funeral industry: a market dominated by 4 key entities

OGF

The funeral services market is dominated by market leader OGF (Omnium de Gestion et de Financement), parent company of Pompes funèbres générales (PFG), with a market share of nearly 25% and sales of 580 million euros in 2020 (OGF website).

The historic leader in the funeral market, its figures for 2020 are impressive:

• More than 113,000 funerals organized
• Nearly 1,080 branches throughout France (under the PFG, Roblot and Henri de Borniol banners, or local brands under the Dignité Funéraire label)
• Nearly 6,000 employees
• Over 580 funeral homes

FUNECAP

Founded in 2010, France's number-two funeral services group posted sales of 350 million euros in 2020, up 40%. (Les Echos). It continues to grow in the funeral market, with 11% market share (Site Funecap). This significant growth is accompanied by revealing figures:

• 625 branches
• 2,600 people at the service of families
• 70,500 funeral convoys
• 1 million unique visitors to group websites per year

Independent companies

Independent companies now account for 60% of the funeral industry's market share ( Résonance funéraire). These organizations, which are often family-run and locally-based, play a local role and create a bond of trust with bereaved families.

They share essential values such as :

• empathy
• compassion
• respect,
• availability,
• passion for their work.

Company networks

Business networks come in 3rd place. They are based on the franchise principle. They include

• Le choix Funéraire: 1st national network of independent funeral businesses, a forerunner in its market, with consolidated sales of 130 million euros (Site Udife group).

• Funéplus: A recognized network of independent funeral professionals, Funéplus has 376 companies and 621 sales outlets in mainland France. The fourth-largest national player in the sector, it generated sales of 184 million euros in 2018 (Ouest-france.fr).

The public sector

There are two types of public funeral service structures:

• Régies municipales and sociétés publiques locales

  These agencies must comply with public procurement regulations. Nor can they operate outside the boundaries of the commune to which they are subject.
  👉 Example: Marseille or Sète public funeral companies

• Mixed economy companies

  This structure was born of the association between municipalities and private companies. A mixed economy company is thus set up. They are jointly managed by the municipality and the private entity, but nevertheless obliged to submit to tender requirements.
  👉 Example: Pompes Funèbres Intercommunales de la région grenobloise or Services Funéraires de la Ville de Paris.

Digitizing the market: how successful companies in the sector stand out

The funeral services market is a constantly evolving sector, with annual sales growth of 3%.

It's a market with a bright future, but one that is not yet well established in the digital age, not least because of strict regulations:

• companies can communicate with the general public, but are not allowed to canvass individuals to sell their services;
• death is still a taboo subject in France, which limits digital communication campaigns.

Today, setting up a company without defining a digital strategy is an obstacle to its development and longevity. Especially with COVID-19, which has considerably changed consumer habits, most of which are now digital.

So how can the 3,500 players in the funeral market continue their digital transformation and stand out from the competition?

Successful strategies

Three tried-and-tested strategies in the funeral services market enable companies in the sector to ensure their presence and visibility on the web:

• Create a website: today, it's essential to create an optimal website. Whether you're in e-commerce or sell only in physical stores, a site is inevitable. It's your company's showcase. It must be visually appealing, easy to use and reassuring for bereaved loved ones.

  👉 Tip: Choose neutral, simple and not too blinding tones to facilitate navigation and be in keeping with the company's activity.

• Social networks: creating a Facebook or Instagram page may seem commonplace for a company in 2021, but it's not a reflex for players in the funeral market. Talking about death is still a delicate subject in France, and should be treated with caution. Designing an appropriate editorial line is essential. It's therefore essential to take care with the tone of your writing, as well as the address to your target audience.
  👉 Tip: You can, for example, communicate on subjects less directly centered on death, such as :

  • administrative procedures,
  • information about your agencies,
    
    
• Internet referencing : whether free (SEO) or paid (SEA), referencing is essential for any company wishing to be visible on the web. To optimize search engine optimization and get on the first page of search engines, you need to optimize your content.

  👉 Tip: Writing articles is one of the best ways to optimize your SEO through relevant keywords. For example, you can write about various funeral-related topics:

  • the role of each service provider,
  • the different services,
  • funeral procedures, etc.

    It's a market that's not very well known because it's so discreet, so there are plenty of subjects that can be covered.

• Guaranteeing your e-reputation: finally, it's essential to have a good brand image in order to win the trust of prospects and customers. The vast majority of today's consumers surf the web for information before making a purchase, whether virtual or physical.
  The funeral market is a delicate one, where families are in mourning, and the aim is to satisfy them to the best of our ability, while respecting all their requests. You have to be more empathetic and a better listener than in any other sector.

  👉 Tip: Make sure you feature reviews from satisfied customers on your website, listing all your benefits.

The benefits of a digital solution for funeral services

• Better online visibility

  Digital solutions enable you to boost your sales while developing your local visibility and online reputation. Your digital presence is enhanced and traffic to your agency is increased. Your services and customer reviews are also highlighted, enhancing your brand image and guaranteeing your customers impeccable quality of service.

• Families are better supported
  Families are supported from A to Z, from administrative paperwork to flower reservation and negotiation with the marble mason. Post-death administrative proceduresare automated, and families' rights are respected. A digital funeral services solution also simplifies communication between families and your funeral director through personalized exchange spaces. This tends to boost customerloyalty considerably .

• Simplified, centralized expense management
  Manual, time-consuming tasks are automated and simplified. This saves you time in your day-to-day work, while centralizing your customers' data and invoices on a single platform.

• Complete real-time management of your business

  A digital funeral solution enables you to manage your business more easily, with a clear view of changes and developments. This is made possible by simple, relevant performance indicators and dashboards. Your stocks are better managed and your reminders optimized.

💡 Solution example:

This is what Simplifia's all-in-one funeral software offers. This custom-configured, turnkey solution enables you to pilot all your funeral business activities to gain in efficiency and focus on people. RGPD-certified, this ultra-personalized online platform simplifies your daily routine while developing your agency locally with families thanks to the included Google My Business geolocation. A tool that allows you to be present not only on search engines, but also on Google Maps, an excellent way to attract internet users to your funeral agency through the web!

Customer experience at the heart of digital strategy

The customer experience is at the heart of the digital strategy for new digital funeral solutions. Whether aimed at bereaved families or funeral directors, ease of use, support and personalization are the three key elements of this strategy, which is designed to be empathetic and tailor-made.

• Ease of use

  The site's interface must be pleasant to use, simple and intuitive. Users must find the answer to their needs quickly.
  👉 Tip: Provide a contact number or e-mail address in case of difficulties.

• Support
  If your customers are bereaved families, comprehensive, tailor-made support is essential. Of course, a digital platform won't provide them with as much contact as a physical agency, but there are several tools that can remedy this.
  👉 Tip: Install a chatbot on your platform's homepage to respond more quickly to potential questions your users may have.

• Personalization
  Personalization is an essential aspect of an optimal strategy in all sectors, but even more so in the case of the funeral market. Each deceased person has his or her own rites, wishes and/or beliefs. It is therefore essential to meet their needs precisely.
  👉 Tip: Set up personalized quotes that are easily accessible on your platform, so that you can offer your users prices and services tailored to their needs. You can also offer customized services such as :

  • Personalization of funeral monuments,
  • online condolences.

Building new relationships with insurers

Insurers have become key players in the market. If funeral directors are to take full advantage of the sector's growth prospects, they need to establish good relations with them.

Indeed, due to the considerable development of funeral insurance, insurers have demonstrated a real influence on the market. As a result, entering into partnerships with them represents an opportunity for companies to increase their margins and ensure the development of their business.

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The funeral services market: a changing sector full of promise

The funeral services market offers bright prospects for its growing number of players every year. The challenge for funeral companies is to position themselves quickly and sustainably in the market, and to do so by distinguishing themselves through digital technology.

It is now more than obvious that digital technology has revolutionized consumer purchasing habits, and the funeral market is no exception. Indeed, the expansion of digital technology is conquering this promising market, which will benefit from it to reach a wider audience and accelerate its overall development.