Many funeral homes get stuck in a price war, competing for business based on who can offer the lowest cost. While this tactic might attract some customers initially, an article by the Forbes Agency Council argues it’s a recipe for stagnant growth.
This article, originally focused on general businesses, offers valuable insights that can be applied to the funeral home industry. Let’s explore how focusing on value can be a more effective strategy than price wars for funeral homes.
Why Price Isn’t Everything
Many funeral homes fall into the trap of competing solely on price. While low introductory offers might attract some customers, the article highlights the challenge of retaining these “discount seekers.” These customers prioritize price above all else and are more likely to move on to the next bargain, hindering long-term growth.
The Power of Value Perception
The article emphasizes understanding what truly matters to families during a difficult time. This “value proposition” could be anything from offering a personalized and intimate service to creating a meaningful goodbye experience. By identifying and delivering on these values, funeral homes can build stronger relationships with families and demonstrate why their services are worth the investment, even if they aren’t the absolute cheapest.
Communicating Your Value Effectively
Even if your funeral home offers exceptional value, it’s crucial to effectively communicate that value to potential clients. The article suggests using a combination of persuasion techniques like:
- Ethos (Credibility): Showcase your funeral home’s experience, accreditations, and positive testimonials to establish trust.
- Pathos (Emotion): Connect with families on an emotional level by highlighting how your services can provide comfort, support, and a dignified goodbye.
- Logos (Logic): Use data and evidence to showcase the benefits of your services. This could include testimonials from satisfied families or highlighting unique offerings compared to competitors.
Building Loyalty Through Value
The article highlights the importance of value-based customers. These customers prioritize quality and service over just price, making them more likely to be loyal and generate higher revenue in the long run.
Key Takeaways for Funeral Homes
- Focus on what matters most to families. Personalization, emotional support, and creating a memorable and dignified experience are key value propositions for funeral homes.
- Price is a factor, but not the only one. While price is a consideration, focusing on value allows you to command a fair price for your services.
- Communicate your value proposition effectively. Use a combination of trust-building elements, emotional connection, and logical reasoning to showcase the value you offer.
By implementing these strategies, funeral homes can move away from price wars and build a sustainable competitive advantage based on the value they deliver to families during a time of need.
Want to learn more? Check out the full Forbes article here: https://www.forbes.com/sites/forbesagencycouncil/2019/11/12/whats-more-important-value-or-price-and-how-to-project-value-to-customers/