The compassion and care offered to clients are the foundation of success in a funeral home. Tracking essential metrics creates an opportunity to make needed improvements, effectively build customer satisfaction rates, and scale the business for long-term growth.
1. Cash Flow Projections
This crucial metric measures the estimated sales total of one month against the estimated fixed and variable expenses for the same month. The findings may indicate improvements needed to reduce expenses. Record the measurements and findings in this funeral home business plan.
2. Funnel Drop-Off Rate
This metric measures the number of customers who begin the process of arranging a funeral, only to stop prior to completing the process. Improvements to marketing methods, in-house processes, or customer communication should be made, as needed.
3. Inventory Turnover
Although the primary function of a funeral home is service-related, numerous products are offered, including caskets and furnishings, urns, memory items, etc. This metric measures how many of each product was sold during a given time period. Knowing how quickly inventory moves will inform decisions on pricing and purchasing.
4. Relative Market Share
A crucial performance indicator is found in measuring your market to determine how much of it is owned by competitors versus your company. Determine competitor revenue, define the size of the market and evaluate the share of your company. If improvements are needed, alter your marketing efforts and revisit your pricing structures.
5. Revenue Growth
This metric measures the rate at which a company’s income is increasing. Measuring frequently allows an estimate of the growth rate in expectation of changed circumstances.
Each of these essential metrics can create positive results for your company. Track and measure areas that will grow your profits, create efficiency in processes, and improve customer satisfaction to ensure long-term growth and profitability along the way.