Funeral services: a fast-growing market entering the digital age

With almost 600,000 people dying every year in France, many bereaved families are faced with an obligatory, albeit painful, step: using a funeral service. This fast-growing market is posting promising figures, thanks in particular to its entry into the digital age.

The digitalisation of businesses, accelerated by the global pandemic, has enabled several market players to improve their services and provide families with better support. 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 is the outlook for the coming years? Find out in this article.

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The funeral services market in France: the state of play in 2021

Funeral services: what are we talking about?

The funeral services market is a sector linked to funerals that are generally organised at the request of families following the death of a person. The role of funeral directors is to organise the funerals of the deceased.

These organisations offer comprehensive, personalised services :

• organising the funeral
• management of administrative formalities
• management of funeral chambers
• sales of funeral items
• 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
• the 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 services market has been liberalised and open to competition since 1993. However, 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 compulsory and must follow a standard model.

As a result, this organisation is based around 3 main specialities:

• Funeral services

  These involve organising the funeral, transporting the body and 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 funerary monuments. Flowers and cemetery expenses are also organised by funeral marble services.

• Care of the deceased

  Conservation care is carried out 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 the PFG Funeral Services website).

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, due to the ageing of the population. The French market grew by an average of 3.03% between 2015 and 2020 (Businesscoot).
  
  
• Nevertheless, despite the increase in the population and its ageing, life expectancy is increasing and 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 services market is estimated to be worth €2.5 billion in France. It has been growing for 15 years, with margins ranging from 8% to 20%. The average price of a burial in France ranges from €3,000 to €5,000. This shows that the market offers good 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 between now and 2022 (Xerfi-Precepta study).
  
  
• This increase in activity should be accompanied by a rise in margins in the medium term, "despite the wage increases that are essential to retain staff". The EBITDA rate will exceed 10% by 2022 (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 that there will be 773,000 deaths a year 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 funeral networks developed by mutual insurance groups.

The funeral industry: a market dominated by 4 key entities

OGF

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

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

• More than 113,000 funerals organised
• 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
• More than 580 funeral homes

FUNECAP

Created in 2010, France's second-largest funeral services group posted sales of €350 million in 2020, up 40%. (Les Echos). It continues to make headway in the funeral market, with an 11% market share (Funecap website). This significant growth is accompanied by some revealing figures:

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

Independent companies

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

They share values that are essential to their support, such as :

• empathy
• compassion
• respect
• availability
• passion for the job.

Company networks

Company 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 (Udife group website).

• Funéplus: A recognised 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 in 2018 (Ouest-france.fr).

The public sector

There are two types of public funeral service structures:

• Municipal authorities and local public companies

  These agencies must comply with the regulations governing public procurement. They may not operate outside the boundaries of the municipality to which they are subject.
  👉 Example: public undertakers in Marseille or Sète.

• Mixed economy companies

  This structure is the result of an association between municipalities and private companies. A semi-public company is therefore set up. They are jointly managed by the municipality and the private entity, but are nevertheless obliged to submit to the requirements of invitations to tender.
  👉 Example: Pompes Funèbres Intercommunales de la région grenobloise or Services Funéraires de la Ville de Paris.

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

The funeral services market is a constantly evolving sector, with sales growing by 3% every year.

It's a market with a bright future, but one that is not yet firmly 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;
• In France, death is still a taboo subject, which limits digital communication campaigns.

These days, setting up a business without defining a digital strategy is an obstacle to its development and long-term survival. Particularly in the wake of 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

There are three tried and tested strategies in the funeral services market that enable companies in the sector to ensure their presence and visibility on the web:

• Create a website: it is now essential to create an optimal website. Whether you're in e-commerce or you only sell in physical shops, a site is unavoidable. It is your company's shop window. It must be visually attractive, easy to use and reassuring for bereaved relatives.

  👉 Tip: Choose neutral, simple tones that aren't too glaring to make navigation easier 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 sensitive subject in France, and should be treated with caution. It's essential to devise a suitable editorial line. It's therefore essential to take care with the tone of your writing and the way it's addressed to your target audience.
  👉 Tip: You can, for example, communicate on subjects that are less directly focused on death, such as :

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

  👉 Tip: Writing articles is one of the best ways to optimise your SEO by using relevant keywords. For example, you could write about the various topics related to funerals:

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

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

• Guaranteeing your e-reputation: finally, it is essential to have a good brand image in order to win the trust of prospective customers and clients. 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, with families in mourning, and the aim is to satisfy them as best we can 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

• Greater online visibility

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

• Families are better supported
  Families are supported from A to Z, from administrative paperwork to flower reservations and negotiations 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 personalised exchange spaces. This tends to boost customerloyalty considerably .

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

• Complete control of your business in real time

  A digital funeral solution makes it easier for you to manage your business by giving you a clear view of changes and variations. This is made possible by simple, relevant performance indicators and dashboards. Your stocks are better managed and your reminders optimised.

💡 Example solution:

This is what Simplifia's all-in-one funeral software offers. This custom-configured, turnkey solution allows you to manage all your funeral home activities to gain in efficiency and focus on the human element. RGPD certified, this ultra-personalised online platform simplifies your day-to-day work while developing your agency locally with families thanks to the Google My Business geolocation included. A tool that allows you to be present on search engines, but also on Google Maps, an excellent way of attracting internet users to your funeral agency via the web!

Putting the customer experience at the heart of your 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 personalisation are the three key elements of this strategy, which is designed to be empathetic and made-to-measure.

• Ease of use

  The site's interface must be pleasant to use, simple and intuitive. Users must be able to find the answer to their needs quickly.
  👉 Tip: Provide a contact number or email to help you deal with any difficulties.

• Support
  If your customers are bereaved families, comprehensive, tailor-made support is essential. It's clear that 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 home page to respond more quickly to any questions your users may have.

• Personalisation
  Personalisation 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 personalised quotes that are easily accessible on your platform so that you can offer your users prices and services that are tailored to their needs. You can also offer customised services such as :

  • personalising funeral monuments,
  • online condolences.

Building new relationships with insurers

Insurers have become key players in the market. If funeral directors want 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. So entering into partnerships with them represents an opportunity for companies to increase their margins and grow their business.

See all software Funeral Home

The funeral services market: a changing sector full of promise

The funeral services market offers bright prospects for its players, who are growing in number 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 revolutionised consumer buying habits, and the funeral market is no exception. In fact, the expansion of digital technology is conquering this promising market, which will be able to take advantage of it to reach a wider audience and accelerate its overall development.